Ford Credit Australia Limited has agreed with the Australian Competition and Consumer Commission that 256 non-business consumers will receive approximately $430,000 in GST refunds and reduced rental payments on their motor vehicle leases, ACCC Chairman, Professor Allan Fels, said today.
"These leases were entered into after 2 December 1998 so that, under the GST transition rules, GST was payable on the monthly rental amounts by Ford Credit. The ACCC's concern was that the terms of the lease agreements did not allow the company to pass on the GST to its lessees and that by doing so the company was likely to breach the consumer protection provisions of the Trade Practices Act 1974.
"The refunds are for GST paid on the monthly rental amounts under the leases and not for GST paid by consumers on the purchase price of vehicles on termination of their leases.
"Ford Credit has also agreed that business customers who are not entitled to full input tax credits, will be provided with appropriate GST refunds and reduced rental payments on motor vehicle leases that were entered into after 2 December 1998. The company is to write to approximately 1900 business customers to establish their entitlement to input tax credits.
"The company's standard lease agreements of concern are those that carry one of the following identifiers in the bottom left hand corner – 3044 10/93; 3044 1/95; ROO6 9/95; UFLA 9/96; UFLA 10/96; UFLA 12/96; FCAL.29; 9419 2/96; 9458 5/96; 9457 5/96; UOLA 9/96; UOLA 10/96.
"The ACCC agreed to an informal administrative settlement to this matter because the company cooperated with the ACCC's investigation of consumer complaints and responded quickly when the ACCC put its concerns regarding these standard lease agreements to the company. The ACCC welcomes Ford Credit's willingness to resolve this matter to the benefit of its customers.
"Ford Credit is to contact relevant lessees by letter over the next few weeks and has set up a toll free number, 1300 552264, to deal with queries".