Consumer Vic Responds to Criticism

Consumer Vic Responds to Criticism - Consumer Vic has responded to criticism from retirement village resident Mr. Les Scobie who claimed CAV were asleep at the wheel in relation to a matter he had raised with the department.

The full story can be read here (full story) but the outline is that the village operator breached the provisions of the Retirement Villages Act 1986. The result being that a group of village residents will be collectively out of pocket to the tune of 1.5 to 2.0 million dollars over time. The village operator will receive the financial benefit of this money by way of increased revenues.

Mr. Scobie lodged a complaint with Consumer Vic over the matter in 2016 and they advised in 2017 that they had looked into the matter but would not be taking action that would redress the matter on behalf of the 30 to 40 village residents affected. The impact of this decision is that each of these residents will pay in the order of $60,000.00 at present day values for the refurbishment cost of their units when the initial advice from the village operator was either non-existent or to the contrary. These actions contravened the provisions of the Retirement Villages Act 1986.

Consumer Affairs Victoria have advised Mr. Scobie that they will review their processes in this matter and seek further legal advice as to their powers of enforcement.

Mr. Scobie is hopeful of a positive outcome for these retirement village residents, he is seeking that given the breaches of the Act by the operator the applicable provision requiring payment of this $60,000.00 be struck from their contracts.

Consumer Vic Responds to Criticism.