Renters have received almost $50,000 back after being slugged with illegal charges for background checks in New South Wales.
Some online rental property applications formerly encouraged renters to pay between $25 to $40 to cover the cost of their background checks, which typically came with the promise it would increase their chances of securing a home.
The state parliament passed changes to rental laws in October, banning landlords from making applicants pay for those checks.
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However, a recent investigation by the rental task force found an online rental application platform was still selling background checks to applicants.
There were 2372 rental applicants charged $19.95 for a search of public databases and the National Tenancy Database — totalling $47,321.
The rental task force has communicated with the platform, which voluntarily refunded affected customers, disabled the background check feature on its website and committed to periodic reviews to ensure compliance.
The rental application platform has chalked the incident up to a system error, which kept the background check option live on its website despite the legal changes.
NSW Fair Trading urges renters who have been charged for a background check to lodge a complaint online.
There are currently 2.3 million people renting in NSW, with the rental task force launched to crack down on dodgy landlords and practices.
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The authority is also working with NSW Police in its investigation into misappropriated trust funds or rental bonds.
Recently on March 7, real estate agent Vanessa Nguyen was sentenced to a 15-month intensive correction order to complete 180 hours of community service and to pay $80,866.20 in compensation.
An investigation found she had taken more than $100,000 dishonestly from NSW Rental Bonds and a trust account managed at Ray White Canley Heights.
She made 25 rental bond claims and, on several occasions, transferred a total of $50,505 from the agency’s trust account into her personal account.
“The significant prosecutions and punishments we are seeing for real estate agents also shows that the message is clear – if you are doing the wrong thing, the rental taskforce will catch you and serious legal consequences will follow,” Fair Trading Minister Anoulack Chanthivong said.
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