Charging Fees for Direct Debit Rent Payments (Victoria)

LDihydrogenMonoxide on 05/06/2021 - 10:09
Last edited 05/06/2021 - 11:23 by 1 other user

Received an email from the real estate agent regarding changes to rental payments. They would like to start charging $1.95 transaction fee for paying rent via direct debit - my current method of payment.

Here's some detail from the email I received:

Payment Options

Direct Debit - $1.95 per transaction

Set and forget your payments. Every time your rent or an invoice is due, we will send you a notification the day before the money is debited.

Card - 1.95% plus 30c per transaction

The Tenant portal/app securely stores your credit or debit card details for future use. Every time your rent or an invoice is due we’ll send you a notification the day before the money is debited.

Australia Post - no charge

If you don’t have a reliable bank account or card, you can pay your rent and invoices in-person with cash at an Australia Post office. You’ll be sent a barcode via email prior to the rent or invoice due date.

On the Consumer Affairs Victoria website, it clearly states that charging fees for direct debit is illegal. https://www.consumer.vic.gov.au/housing/renting/rent-bond-bills-and-condition-reports/rent/rent-payments-and-rent-in-advance

Has there been a change to rental laws that would enable this?

Home & Garden

Comments

  • oscargamer on 05/06/2021 - 10:14
    +4

    Just email back the rea with that link ….

    If there has been a change, they will let you know

  • brendanm on 05/06/2021 - 10:15
    +9

    Rental agents really are scumbags. In my experience they either don't know, or don't care, about rental laws. Enough people will just pay this and not question it.

    When I rented, they had some silly system that they used, I made sure to pay via BPay, as it cost me nothing, and cost them for the transaction. I would pay on the day rent was due, but this wouldn't be in their account for a couple of days, they would have a go at me and tell me rent was late, I would point out to them that tenancy law states that it is classed as "paid" once it leaves the tenants bank account. Lazy ignorant a$$holes.

  • brokenglish on 05/06/2021 - 10:28
    +2

    Per Consumer Law link you provided, they just need to at least provide one payment method with zero processing fee:

    provide at least one payment method where the renter doesn’t have to pay a fee (other than the renter’s own bank fees)

    Normally they would charge you a fee if you don't do direct debit with them (they just want payment assurance).
    Yours is the other way around.
    No fee for AusPost is actually very good for you. I assume this means you can use PostBillPay to pay your rent and thus racking up points from using your credit card to pay rent.
    This is madness (good madness) if true.

    BUT!

    First check with your REA if you can do PostBillPay.
    If they however only give you a barcode that requires you to PHYSICALLY VISIT a post office to pay your rent:
    1. Argue with your REA that driving to the post office cost you car expenses (fuel, insurance, etc.) and therefore the payment is not fee-free.
    2. Try contacting https://tenantsvic.org.au/contact-us/ for advice and help.
    3. Depending on your sanity and whether you like your current place, you can think of the additional $1.95 per transaction as a rent increase and just cop with it.
    But definitely not 1.95%! That's like $39 for $2,000 monthly rent! Unless you have a super-high-point-earning credit card that can offset this fee, this might be beneficial for you.

  • DihydrogenMonoxide on 05/06/2021 - 10:55
    +3

    Per Consumer Law link you provided, they just need to at least provide one payment method with zero processing fee:

    provide at least one payment method where the renter doesn’t have to pay a fee (other than the renter’s own bank fees)

    I did read that line on the website, however that doesn't invalidate the section that states:

    Illegal fees and charges
    The rental provider cannot charge fees or fines for:

    • issuing a rent payment card
    • establishing or using direct debit facilities
    • processing rent payments
    • late payment of rent.

    Appreciate the rest of the advice. I've sent an email to the agent questioning the fee. If they give a negative or no response, my next step will be contact Tenants Victoria to ask for help.

  • Baysew on 05/06/2021 - 11:26
    +1

    Previous post on subject Payment Fees for Rent for Queensland.

    SPOLIER ALERT: Agent backed down.

  • Mechz on 05/06/2021 - 13:43
    +1

    Thanks for this, I got the same email a few days ago. Writing them an email now telling them their obligations.

  • Baysew on 18/06/2021 - 13:56
    +1

    Watchdog investigates concerns tenants are being hit with fees to pay rent

    While Victorian landlords and agents are required by law to provide a free rental payment method, as well as the option of electronic funds transfer, some renters say their agents have given them no option but to use the service and pay the fees.

    Suggest you contact Consumer Affairs to add to this enquiry.

  • ojk on 30/06/2021 - 18:04

    Block-quote provide at least one payment method where the renter doesn’t have to pay a fee (other than the renter’s own bank fees)

    What if that method is paying by cheque?

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