Thorn Group Stand Ground In Radio Rental Class Action
The Thorn Group, parent company of Radio Rental has defended claims that it overcharged vulnerable or disadvantaged customers through its “Rent Try $1 Buy” scheme.
The company pledged to defend itself in court in a statement posted to the ASX.
“Thorn Australia will defend the claim in the ordinary course of the class action process. It is anticipated that the process could take a significant length of time, perhaps years, to run its course.”
“The company will update the market if there are any further material developments.”
A class action lawsuit was launched last week by compensation firm Maurice Blackburn.
The law firm claim that Radio Rentals “imposes on its disadvantaged customers onerous and unfair terms that avoid credit laws that prohibit overcharging”, forcing victims to pay up to seven times the retail cost of the rented item.
They argue that if their case is successful, the outcome could affect up to 200,000 people and refund a total of $50 million. They say they’ll be conducting the case on a “no win no fee” basis and encourage those affected to participate as claimants with the firm.