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Guilty pleas in Commission’s 12th mobile trader prosecution

13 April 2017

Truck shop operator Budget Warehouse Limited (Budget Warehouse) has pleaded guilty to 18 charges relating to its customer credit contract documents.

Budget Warehouse is a Manukau-based truck shop which operated five trucks in the Auckland and Hamilton regions, selling household goods on credit. It is the 12th mobile trader so far prosecuted by the Commission since the release of the Commission’s Mobile Trader 2014/2015 report.

The company failed to disclose the required information in its contract documents, including its full contact details and an accurate statement of the customer’s right to cancel. Many contracts failed to accurately disclose payment details, including the total number and amount of payments, and the date of the first payment.

Budget Warehouse’s contract documents also misled customers about delivery guarantees and liability for loss or damages caused by the products sold.

A sentencing date will be confirmed shortly.