Harvey Norman Finance Partner Rakes In Million In Profits As Consumers Claim They Were “Ripped-Off”
Financial services provider FlexiGroup whose financial packages have been described as a “rip-off” by several Harvey Norman customers has recorded a whopping $97M profit.
It was only a week ago that Harvey Norman stood accused of locking consumers into “outrageously expensive” Flexirent consumer leases, it’s also been revealed, that that their sales staff are earning “high commissions” from the lease contracts.
The Consumer Action Law Centre (CALC) has said that a consumer who buys a $2847 TV is ending up paying over $5400 at the end of the contract and they don’t even own the TV when all payments have been made.
CALC told the ABC that consumers who buy from Harvey Norman and take out a consumer lease will end up paying up to 4 times the original purchase price of the goods.
In the 12 months to June 30, FlexiGroups cash net profit rose 8 per cent to $97 million they also reported a 19 per cent lift in new business volume to $1.35 billion and 22 per cent growth in cash flow from operations to $147.4m.
Chief executive Symon Brewis-Weston “Over the last six months we have added new merchant partners to our 20,000-strong store network, our sales and marketing culture has been reinvigorated and we have a rapidly growing new business pipeline in place, particularly across our commercial and cards businesses,” he said.
“These investments, in line with strategy and focused on delivering improved returns on invested capital, include growing Ireland, commercial leasing and Oxipay,” Mr Brewis-Weston said.
“While still at a very early stage, we have identified opportunities to expand in Ireland and will be investing in this business to capture the significant market opportunity which we believe exists there.”
Harvey Norman is a key FlexiGroup retail partner in Ireland.