The ASBFEO works with a broad range of businesses to provide one-to-one assistance for business disputes, including referral to government support and arranging alternative dispute resolution.
Termination fee waived for small business
Due to financial stress, a small business was forced to release all its staff. They also sought to terminate a long-term commercial relationship with a service provider.
Terminating their contract with the service provider meant they would have to pay a termination fee. The small business felt the termination fee was unfair due to their circumstances, so they contacted the ASBFEO.
We were able to assist in this matter as an impartial third-party and liaised with the service provider. After reviewing the matter, the service provider decided to take the long commercial relationship with the small business into account. They agreed to terminate the contract and waive the termination fee.
Reducing debt
A vocational training business had an equipment lease and services contract dispute with a global technology business regarding devices and a debt. The small business contacted us, and we helped to coordinate and manage correspondence between both parties.
By focussing on interest-based outcomes, the debt was significantly reduced, with the small business able to retain the devices and continue their business operations.
Contract cancelled without cancellation fee
A small business owner entered into a contract with a lead generation online business. She started with a dollar figure per month and kept increasing the amount per month, not realising this meant that each time she altered the amount per month she was entering into a new 12 month contract.
When she called the business to cancel the contract, which she thought was due to expire (after initially joining up for 12 months), she was told she could cancel but would have to pay out almost $4,000.
The ASBFEO contacted the online business and we were able to have her contract cancelled without the cancellation fee.
Advertising company waives outstanding invoice
A small business owner had a contract with an advertising company. The company used to contact him yearly to discuss his contract renewal, but this did not happen when the contract was due to roll in 2017. The small business owner felt that he was not provided with the opportunity to cancel the contract.
The most recent contract did not advise that there would be a follow-up call each year. The auto-renewal notice for 2017 was sent to two people; one no longer worked with the business and the other was not involved in the original purchase of the advertising and was likely not aware of the automatic renewal terms.
The advertising company waived the outstanding amount of $737 as a gesture of goodwill.
Business hires lawyer to improve contract
Whilst assisting two small businesses to resolve a contractual dispute, the ASBFEO was able to identify some confusing terms and conditions in the contract of the respondent.
Following suggestions from our office, the respondent hired a business lawyer to review their terms and conditions, and is in the process of making some changes to their business processes to be more transparent for users and customers.
Verbal contract resolved
When a small business owner registered an online inquiry, the online entity responded with a phone call. The small business owner was told she had to agree to buy the product she had enquired about on the spot, to avoid the offer being withdrawn.
The small business owner verbally agreed to the contract, for which she received a quote for several hundred dollars per month. On the same day, after discussing it with her business partner, she attempted to terminate the service via telephone conversation and email.
Despite the same day cancellation, the small business owner was told that when signing up to a contract over the phone, there was no ‘cooling off’ period.
The ASBFEO identified in the terms and conditions of the contract that the purchaser was able terminate the contract by giving the supplier 14 days’ written notice. Given the small business owner cancelled the contract within hours of verbally agreeing to it, the contract was able to be terminated without charge.
The small business owner was thankful for the help saying:
“I’d like to say that I’ve been really impressed by your services and I’m grateful that your company exists to help out the small businesses of Australia.”
Advertising contract refunded
A small business owner was contacted by an advertising company about an advertising opportunity.
During the phone call, the small business owner requested time to consider the advertising cost ($5,500) before agreeing. She was told the offer was only valid during that phone call and she needed to agree on the spot.
The small business owner reluctantly agreed and provided her business logo and pictures as requested. The advertising company guaranteed a draft of the advertisement would be sent for review within four business days.
When the draft wasn’t received by the agreed date, the small business owner requested her contract be cancelled. This request was denied as it fell outside the ‘cooling off period’ offered by the company.
As a result of the delays experienced by the small business owner, and the subsequent breakdown of the relationship between the parties, a full refund of $5,500 was requested.
The ASBFEO was able to negotiate changes to the advertisement that satisfied both the small business owner and the advertising company. The parties are now working on finalising the advertising.
Both parties expressed their gratitude for the intervention by the ASBFEO.
Advertising and website contract resolved
A small business owner wanted to increase her business’ online presence. She approached a digital agency and admitted she knew nothing about the online world and asked for help.
The agency sold her advertising designed to increase her business’ presence, as well as the building of her business website, but did not provide sufficient explanation of the services.
The small business owner signed a contract for the website build, but became disenchanted with the digital company, particularly once she understood there would be additional website hosting costs and other charges.
The small business owner tried to terminate the contract, but was unable as she had signed the agreement.
The ASBFEO contacted the digital agency and provided them with a greater understanding of their client’s situation. The agency agreed to either waive the additional hosting charges or terminate the contract with no further costs.
The small business owner chose to terminate the contract with no further costs and the issue was resolved.
Contract terminated without penalty
Following a cold call, a small business owner signed a six month contract with an IT services provider for advertising, search engine optimisation and a new website.
The small business owner was unhappy with the level of service provided as they were writing their own website content and the advertising had only resulted in a marginal increase in business.
The small business owner attempted to resolve the matter directly with the company, but there was no improvement to the service, so they sought to terminate the contract.
The company refused to terminate the contract without early termination fees and a pay-out of the remainder of the contract.
The small business owner then contacted our the ASBFEO for help.
The ASBFEO had previously negotiated with the IT company to have a designated contact officer to deal with disputes. As a result of this arrangement and their enquiries, the contract was terminated without any further fees to pay, saving the small business owner around $5,000.
Termination fee waived
A small business owner engaged the services of an IT provider.
When she realised the IT provider wasn’t able to effectively fulfil the required services, she attempted to cancel her contract, but was told she would be charged the remainder of the contract fees.
This IT service provider has not previously allowed the cancellation of contracts without a termination fee in such circumstances.
This time, after prolonged negotiation, they released the small business owner from her contract without any additional charges, saving her a total of $8,000.
Newspaper advertising overpayment resolved
A small business owner placed an advertisement in a local paper. The initial paperwork was the only form of invoice provided (as noted in the contract). The contract was for an initial period, but in smaller print, the advertiser was required to give four weeks’ notice to stop advertising.
The charge was taken from the business owners’ bank account via a pay system that did not identify the media outlet, but rather the pay system. The small business owner also used this same payment system for her security alarm.
Three years later the small business owner’s accountant suggested she was paying too much money for her security alarm and she started investigations.
She discovered she was still under contract to the local paper, even though she had never received any invoices or contract renewals. She contacted the outlet, but by this stage the business had changed hands. The new business owners had been given a list of all the people under contract, but had made no contact with them either.
The ASBFEO was able to help the business owner reach a resolution where the local paper paid back a large proportion of the monies paid since the end of the initial advertising period.
Advertising account re-activated
A small business owner reached out to our the ASBFEO following the de-activation of an advertising campaign.
The advertising company claimed the client breached the terms and conditions of the contract, but didn’t provide any information.
The small business owner attempted to reach out to the advertising company via their help page online, but received unhelpful automated email responses.
The ASBFEO contacted the advertising company and the account was re-activated.
The client said she’s ‘very grateful that I can now advertise again and provide career counselling services to those who need it’.
Resolution reached following mediation
A property developer signed an agreement with a telecommunications company to relocate a telecommunications pit (used as a distribution point for phone cabling), at the developer’s own cost.
The property developer signed the contract to avoid delaying the development. The developer later attempted to contact the telecommunications company to understand why he was required to pay for the shift of the pit when it was not necessary for his development, but in discussions was unable to resolve the issue.
The property developer was then invoiced $33,000 for movement of the pit.
The ASBFEO attempted to help the parties resolve the matter, which resulted in the Ombudsman recommending mediation.
The ASBFEO was informed that mediation was successful and a commercial resolution was reached.
Settling a franchise dispute
We helped a franchisee who sought to progress to mediation under the Franchising Code of Conduct. A dispute arose about the costs associated with starting up, shop fit out and store occupancy costs that are paid by the Franchisor for the Franchisee under the leasing agreement with the lessor.
The parties commenced discussions about exiting the agreement to minimise further costs, as difficulties and costs increased in the fit out and leasing. The Franchisor sought payments to cover the Franchise Agreement, as well as costs owed by the Franchisee and sought to charge interest.
A dedicated case manager organised mediation with one of our independent Alternative Dispute Resolution Practitioners. This dispute was resolved at mediation through a settlement agreement between the two parties.
Mediating to resolve disputes
We help small businesses to resolve disputes and to access mediation when required.
For example, we received multiple requests for help from franchisees of larger franchising system who employed various departments to service their franchisees. A particular dispute occurred when client leads were not being forwarded to franchisees with the requisite skills. Instead, the leads were being referred to other areas of the franchise network without the required qualifications to undertake the work.
One of our dedicated case managers assisted with resolving the dispute through mediation with one of our independent Alternative Dispute Resolution (ADR) practitioners.
Multi-party dispute
We assisted in a dispute in which a franchisee took over a local post office. Contractors had previously been required to work significant additional hours and when the franchisee took over the franchise, the contractors sought back payments.
The franchisee claimed they had not received enough payment from the franchisor, as the payments did not cover the amounts, they were required to pay the contractors. They claimed that the amounts they received were based on a timetable that failed to account for the actual hours that trucks arrived (including after-hours work).
A dedicated case manager assisted the franchisee and franchisor through an Alternative Dispute Resolution process that was resolved via mediation.
The importance of due diligence
A franchisee approached our office for assistance under the Franchising Code of Conduct (the Code), following the dispute resolution process.
The dispute started when a franchisee was looking to purchase a multi-location franchise and to work with another party to purchase the franchise. The franchisor advised the franchisee that they knew of another person who was interested in doing the same thing, and provided details so the two could get in touch.
The franchisee thought the franchisor had vetted the other party and partnered with them. Unfortunately, this was not the case and resulted in a dispute over subsequent losses.
A dedicated case manager assisted the franchisee and franchisor through the Alternative Dispute Resolution process that was resolved via mediation.
Debt collectors for franchising dispute
A Franchisee contacted the ASBFEO in distress due to a long running dispute with their Franchisor.
After their franchise agreement was terminated, the Franchisor continued to demand around $10,000 in payments. The Franchisor had even engaged debt a debt collection agency.
After hearing about the situation, the ASBFEO wrote to the Franchisor, who then agreed to waive the payments, and the issue was quickly resolved.
Termination leads to franchising dispute
A Franchisee received a Notice of Termination from their Franchisor. They responded by issuing a Notice of Dispute, raising concerns they would suffer significant and irreparable damages if the Franchisor improperly terminated their agreement.
When the Franchisee reached out to the ASBFEO for assistance, we arranged for both parties to attend an alternative dispute resolution process under the Franchise Code of Conduct.
The parties attended Mediation and a settlement agreement resolved the situation.
Driver unable to access payments
An Uber driver was having ongoing troubles with transferring payments from Uber to his own bank account. These issues continued over time and meant that he was unable to access his payments.
The Uber driver was suffering financially, so called the ASBFEO for assistance. We worked with Uber to rectify the issue, ensuring payments could be transferred. The Uber driver was relieved to receive all outstanding payments.
Locating a solution
A franchisee purchased a second franchise, which included an existing lease of premises. However, the lease was terminated by the landlord. Due to a downturn resulting from COVID and no premises available to operate from, the franchisee sought to cancel the franchise agreement.
The franchisor did not want to terminate the agreement and wanted the franchisee to find a new location to operate from. The franchisee maintained they only purchased the franchise due to the location.
We worked with one of the State Small Businesses Commissioners to identify a mediator who could deal with both the franchising and lease issues in accordance with both the State and Federal legislation. The mediation led to an agreement between the parties to resolve their issues.
Franchise reinstated
A thriving small business was approached by the state leaders of an internationally recognised dealership with an offer of working exclusively with them.
The small business owner saw this as a great opportunity and accepted the offer, and within a year, it became one of the most successful franchises in the state.
However, given intense competition in the industry, there were a variety of factors that led to the early termination of the franchise, and an unsuccessful mediation was held between the parties.
The ASBFEO arranged a case appraisal and conciliation that resolved the matter and reinstated the franchise.
Agreement reached over business name
A small business franchisor trademarked his business name. He then found that another business had opened in the same industry and was operating under the same name.
The other business had registered the business name with the Australian Securities and Investment Commission (ASIC) and did not understand why they could not use the name.
Before contacting our the ASBFEO, both parties had sought legal advice, but had not reached a resolution.
The ASBFEO approached the business owner and explained that registering a business name with ASIC did not give a business ownership of a name.
The ASBFEO explained that trademarking a name or logo was the only way to get intellectual property rights over that name.
A resolution was reached when the business owner agreed to change his business name to one that was acceptable to both parties.
Successful negotiation with leasing agent
The ASBFEO received a request for help from a small business owner running a food outlet in a shopping centre.
He had been significantly affected by the landlord’s decision to position a national franchise selling similar products immediately next to his business.
As a result, his sales fell significantly and he found his shop was no longer viable.
In addition, he had extra cleaning charges under his lease that he believed to be unfair.
Following our intervention, the leasing agent contacted the small business owner and negotiated a lower rent and waived the additional cleaning charge.
Shopping centre agrees to pay fit-out cost
A small business signed a commercial lease and fit-out deed with a shopping centre.
When the small business owner submitted an invoice for the $70,000 fit out cost to the shopping centre, the centre advised it would no longer pay that amount, instead offering $40,000.
The ASBFEO contacted centre management at the shopping centre and it agreed to pay the $70,000, which enabled the small business owner to pay the sub-contractors she engaged to complete the fit-out.
Self-help tools and support
A small business working remotely for a start-up was not paid for its services. Despite the non-payment, the small business continued working, hoping payment would eventually arrive. However, when the outstanding amount exceeded $5,000, the small business stopped providing services for the start-up.
When the small business pursued payment, the start-up reassured them that funds would be provided once their clients paid; but they did not pay. The small business then reached out to ASBFEO, where the case manager walked the small business through the ASBFEO 5 steps to resolving disputes.
At step 3 of the 5 steps to resolve a dispute, the ASBFEO case manager worked with the small business to send a letter of demand. The case manager also explained the process and possible timeframes.
The small business sent a letter of demand and was empowered to negotiate directly with the start-up, resulting in an agreement that included a payment plan with specific dates. About a month later, the small business contacted the case manager with concerns over late payments in relation to the agreed payment plan.
The case manager explored possible options with the small business, giving them time to consider the best course of action for their business.
The small business relentlessly followed up payment via email and text messages and eventually the start-up paid off the full amount. The small business informed ASBFEO that the issue had been resolved and thanked the team for their support.
Non-AFCA loan default puts family home on the line
Recently the Small Business Debt Helpline referred a matter to our office where the small business had defaulted on a loan with an organisation that was not a member of the Australian Financial Complaints Authority (AFCA).
In this case, a small business owner had borrowed a few thousand dollars from the non-AFCA lender to tide them over while business was slow. The loan required daily repayments. In less than a month, the small business had defaulted on the loan, and every day a payment wasn’t made, a penalty fee of $1,000 was applied to the debt. Even when payments were made, these were applied to repayment of penalty fees rather than the loan amount, resulting in the application of another penalty fee. The amount of debt quickly skyrocketed to tens of thousands of dollars.
The small business owner was very distressed when a caveat was placed on their home and the lender initiated formal legal proceedings. Acting as an independent third party, we corresponded with the non AFCA lender about the loan contract, the interest rate, the application of default fees and their hardship provisions. Following our correspondence, the lender offered to remove the penalty fees and revert to the original payment schedule. This put the small business owner in the position of being able to retain the family home.
While this was an excellent outcome for this small business, it does illustrate why it is important for small businesses to read contracts and ask questions, and to seek help early if they’re in financial trouble to understand all the options before signing up to new contracts. There are likely much better options for small loans than signing up with non-AFCA lenders. The Small Business Debt Helpline (call 1800 413 828) is a great place to start. It is a free service for small business owners in financial difficulty, offering practical advice from qualified financial counsellors tailored to the caller’s circumstances.
Outstanding invoices
We were contacted by 3 independent contractors seeking payment of invoices for services to the same company. We wrote to the company seeking information about why the invoices had not been paid. The company informed us that they were declining to pay because they believed that the contractors were using incorrect ABNs. They also queried the right of the 3 contractors to work in Australia despite hiring them.
ASBFEO confirmed that the invoices contained correct ABNs and provided this information to the company. We also noted that raising these types of issue does not relieve companies from paying for services contracted and received. Following our engagement, the company agreed to pay all 3 contractors.
Business relationship preserved
A migration consultation service provided migration services to another business, but their invoice of $1,100 was not paid. When the other business refused to communicate, the small business approached our agency for assistance.
After assisting both parties to discuss their concerns, they reached a resolution. The outstanding invoice was paid, and both parties agreed to continue working together.
Clear communication is the key
A small business achieved their first sale through an online selling platform. The buyer pressured the business to send the item before they received payment, claiming it had been paid. Adding to this was ambiguous correspondence from the platform about not having sent the item and so they felt forced to send the item.
The business did not receive payment and attempted to resolve the payment dispute with the platform, who responded that sending an item before receiving payment was against its policy and were ineligible for buyer protection.
We wrote to the online platform, explaining how the small business believed it was acting in accordance with the platform’s previous correspondence. The platform agreed and paid the small business the value of the item. They also determined that the buyer was fraudulent.
Unapproved additional charges
A small business contacted our office that was in dispute with another company that had applied additional charges to its service.
The small business advised the company that it had contacted our office for assistance, which was enough for the company to completely waive the charge and refund the money.
The small business was grateful for our support stating ‘this is a huge win for a small family business’.
Payment plan enables outstanding payment to be made
A small business owner had an ongoing payment dispute with another business, which lasted over six months. The other business had undergone a restructure and was unable to commit to pay.
The ASBFEO was able to arrange a payment plan over a four week period to have the outstanding $8,500 paid.
The small business owner was pleased with the offer of payment plan, describing it as “bloody brilliant”.
Outstanding payment settled
The ASBFEO was contacted by an ice cream supplier who supplied just over $5,000 of ice cream to another business. The supplier had been chasing payment for over a year.
Following the involvement of the ASBFEO, the business owing the money agreed to pay it back in two instalments.
Sole trader received outstanding payment
A sole trader contacted the ASBFEO about an outstanding payment of $1,875 from a development company. The ASBFEO contacted the developer and the company agreed to make the payment.
Outstanding invoice waived
A small business owner lodged a dispute with a company about a three month social media campaign contract.
At the end of the contract period, the contract auto-renewed, leaving him with an outstanding invoice for $786 for a fourth month he did not agree to.
The small business owner found it very difficult to contact the company directly to resolve the issue as all communication was through offshore call centres, and none of the emails had contact names or phone numbers attached.
Each time the small business owner contacted the company, he would have to explain his issue over again as previous conversations were not recorded.
After disputing the invoice for eight months and continually receiving invoice and debt collection notices, the small business owner turned to the ASBFEO for help.
The ASBFEO contacted the company and they agreed to waive the outstanding invoice.
The small business owner said: “A sincere thank you to the Small Business Ombudsman for the time and effort taken to help our business.”
Commission payments made
The ASBFEO received a request for assistance from a business regarding their contract with another business.
The complainant advised they were not receiving commission payments owing under the contract in place between the parties.
The complainant had been denied payment due to an issue around incorrect paperwork and docket sales.
On review of the contract, the ASBFEO was able to identify that the contract between the parties only allowed for payments to be deferred, and did not stipulate that payments could be withheld due to administrative issues.
The ASBFEO wrote to the business to seek feedback. Although the business did not respond directly, it began making payments as per the contract.
The complainant was thankful for the assistance.
Clothing company paid
A small business owner who ran a clothing company overseas was underpaid around AUD $7,000 by an Australian-based business.
Following involvement by the ASBFEO, the company started to make the payments, the first being roughly AUD $500.
The small business owner thanked the ASBFEO for our involvement.
Contractor receives outstanding payments
A contractor working through a recruitment agency was owed $29,000 in outstanding invoices from a government department.
The contractor contacted the ASBFEO who was able to help the parties resolve the issue with the contractor receiving the full amount owing to him.
Government decision overturned
A small business reached out to the ASBFEO after a decision by a government department affected how this business could engage contractors.
The ASBFEO contacted the government department which agreed to overturn the decision.
The director of the business says “Now we can continue to contract to these contractors, which is a big relief to them and us - especially during this time of year before Christmas and all the big end of year household bills. We’re very thankful for your input ASBFEO!”
Letter of demand results in payment of outstanding invoice
A small business owner contacted the ASBFEO about outstanding invoices for services provided.
The ASBFEO advised the small business owner to write a letter of demand, in the first instance.
The letter enabled him to retrieve most of the money owing to him. The ASBFEO then contacted the other party about a further $6,500 and the small business owner was paid the amount.
The small business owner was grateful for our help: “I can’t stop thinking about all the money I have given up on over the years because companies just won’t pay. You don’t know what this means to me, thank God for you guys.”
Letter of demand results in return of deposit
A small business owner paid a $20,000 deposit for a ute. After a series of unfortunate events, the small business owner requested the deposit back from the dealership, but they said they had used the money.
The ASBFEO helped the small business owner write a letter of demand, which resulted in him receiving his deposit back.
Writing a letter of demand is a critical step in the dispute process and can produce results quickly and efficiently.
Wiping out fake reviews
We assisted a small business who was impacted by a fake negative review that was published to their digital application.
The small business owner had made multiple attempts to resolve the matter with the alleged customer and the digital platform, with no outcome.
One of the ASBFEO’s dedicated Case Managers managed the complaint and within two weeks of making contact with the digital platform, the fake review was removed. The small business owner expressed tears of joy when the review was removed and thanked us for our help.
Rebuilding after hackers
We help small businesses reinstate their digital accounts after being hacked.
We continued to observe the impact of issues with digital platforms where small businesses rely on social media to grow their businesses. One of our dedicated case managers assisted a small business that had their email and social media accounts hacked. The hacker posted misleading posts and privately messaged the small business owner’s social media followers.
Our case manager worked with the relevant digital platforms resulting in accounts being reinstated. The small business owner said they were grateful for our help and thanked us for our great service.
Lilly Collins is still having an impact
Our office continues to see issues arise for small business that are related to the Lilly Collins Facebook data breach hack. In one instance, while the hacker had access to the small business’ account, the hacker spent thousands of dollars in advertising not relevant to the business.
Once the small business was able to regain access to the account, they were unable to advertise while the hack was being investigated to remedy the previous advertising charges.
A dedicated case manager worked with META to regain timely access, allowing the small business to advertise again.
International YouTuber in disguise…
Many small businesses use digital platforms as a marketing tool to drive and increase their business viability. However, it can cause complications when small business owners have their personal digital applications linked with their personal accounts.
We assisted a small business whose account was hacked, and the account name changed to Zach King, a famous YouTuber. We allocated a dedicated case manager who worked with META to get the account access resolved and explain what the small business can do to prevent this reoccurring, and what to do if this situation happens again
Full refund returned
A small business had arranged for online advertising with a digital provider. They claimed to have incurred a larger amount of advertising costs than necessary, stemming from navigation issues due to the way the digital provider had set up their advertising.
The small business had been offered a 25% refund. After we requested the provider review the case again, the small business was offered a full refund.
Withheld funds released
A seller on a digital platform advised us about a platform withholding $3,533.29 of their sales due to their refusal to supply identity documents.
The seller requested our assistance in engaging with the platform. Once we raised the complainants concerns and clarified both parties issues, the digital platform released the withheld money and paid the seller an additional $466.
Access no longer denied
A seller on a digital platform approached us for assistance in resolving a dispute. They had sold a mattress to a buyer on the platform who subsequently claimed the product was damaged.
After attempts to retrieve the product back from the buyer were denied, the digital platform refunded the buyer. This left the seller out of pocket for the cost of the mattress and the courier fees for attempting to retrieve the mattress.
After multiple discussions with the digital platform about the seller’s issues, the digital platform agreed to refund the seller 50% of the cost of the mattress.
Christmas present for small business
A small business owner’s Facebook account was disabled after being hacked. Their business suffered, as did the business owner’s livelihood and their mental health.
The small business owner asked the ASBFEO for help. We worked with META to restore their account access. We also provided tips to help keep their account secure in the future.
The small business owner was overjoyed to have their account restored, especially in time for them to do their pre-Christmas promotion!
Restoring business after a hack
A small businesses social media account was compromised by the ‘Lilly Collins Hack’. This business account was also linked to a personal account, a primary administrator for the business account, and several linked secondary administrators. Due to the interconnected complexities of the business account, hackers were able to gain access to the personal account, while also controlling the business account, marketing campaigns, and linked credit card information. The businesses social media account was renamed ‘Lilly Collins’.
We provided information to the social media platform who immediately commenced a review. The hackers were removed from the account and unauthorised expenditure from the account (while it was compromised) was returned in full to the small business. The small business was also alerted to fraudulent ads about the business and provided information on how to remove these ads.
The account was fully restored, secured, and returned to the grateful small business.
Full refund received for unwanted advertising
A small business owner had an advertising app on his phone that had not been active for over a year.
When the small business owner bought a new phone, the advertising account was inadvertently activated, and he received a bill for over $1,000 for the month.
He deactivated the account, but again received another bill for nearly $2,000.
The small business owner contacted the advertising company a number of times to attempt to resolve the issue but was unsuccessful.
The ASBFEO contacted the company about the issue and the small business owner received a full refund for the charges.
The small business owner was very grateful for our assistance saying, ‘That is fantastic news! I can’t thank you enough for working on our behalf for this resolution. We would never have been able to get anywhere without your help. Thank you so much.’
Online directory listing and outstanding invoice cancelled
A small business owner contacted the ASBFEO after being cold called by an online directory company.
The small business owner agreed to the listing as he thought he was renewing a Telstra listing and was invoiced $1,095. When he received the invoice, he realised his mistake and attempted to cancel the listing.
The ASBFEO helped the small business owner to cancel both his listing and outstanding invoice and be added to their ‘do not contact’ list.
The online directory company agreed to consider recording calls to verify agreements, in order to avoid disputes such as this in the future.
Refund for damaged goods
The ASBFEO was contacted by a business about damaged concrete candle pots received from another business.
When the business received the $700 order, some of the pots were damaged, but she was unable to get a replacement or refund for the damaged goods.
When the ASBFEO contacted the seller, they immediately provided a refund for the damaged pots.
The small business owner said: “I want to thank you for helping me out so quickly, I was amazed at how quickly things worked out - this has been going on for a long time. Thank you for being so helpful and for enabling me to get what was rightfully mine.”
Refund received from material supplier
A small business purchased material for leotards for a gym team. The outfits all became worn out after the first couple of wears.
The small business owner wasn’t able to reach a resolution with the material supplier.
The ASBFEO contacted the supplier and they offered a refund of $2,211 once the outfits were returned.
Tax Concierge Service guides path
We received a request for assistance from the trusted advisor of a client with an intellectual disability. The request related to an Australian Taxation Office (ATO) determination that the client had submitted a fraudulent GST claim for a (non-existent) business that was established in their name.
The case had the hallmarks of a Protego-style dispute, with a bank account set up to receive the GST refund. After checking with the bank, the client discovered that the account was not set up in their name.
The ATO maintained its decision that the client was liable for repayment of the claim as they had shared log-in details with a trusted family member that had been assisting with their tax returns. Therefore, the onus was on the client and the trusted advisor to prove that third-party fraud occurred and there was no way the client could prove their account was fraudulently accessed by an unknown third party.
A dedicated Case Manager provided assistance through our Tax Concierge Service. This allowed the client to access subsidised legal advice and make an informed decision as to whether to pursue the matter to the Administrative Appeals Tribunal.
Low-cost legal support for contract matter
A contractor entered into an agreement with a business but was not able to start work due to personal circumstances. The business sought a significant termination fee. After our office made initial contact, the business offered a reduced fee.
The contractor was referred to a low-cost legal support service and the matter moved to alternative dispute resolution. We issued a Notice to Conciliate, encouraging both parties to consider the potential application of the law regarding unfair contract terms. Following this, the business proposed a substantially lower settlement amount, which the contractor accepted and this was formalised through a deed of release.
The contractor later contacted ASBFEO to close the case and expressed appreciation for the support received.
Managing financial hardship
We assisted a small business owner who applied for finance from a financial lender, had it approved and then suffered unforeseen health issues. Because of the health issues the small business owner could no longer work and was living on income support.
When the small business owner sought a waiver of payments, the lender only offered a moratorium of repayments until the small business owner could restart servicing the loan.
A dedicated case manager assisted the two parties to work together to understand the issues in more detail. They also assisted with options for the small business to apply for financial hardship.
Unboxing a mystery
We helped a small business owner who thought they were stuck. An international customer purchased a product from an Australian small business via an online business, then subsequently stated the product did not arrive as the parcel box was empty.
The online business partially refunded the international customer on behalf of the small business, despite the owner providing proof that the parcel was weighed by delivery services in Australia and the other country. The weights were correct, and considerably more than an empty box.
A dedicated Case Manager worked with the online business, explaining the small business owner’s concerns. This resulted in the small business owner receiving a full refund within the week.
Electricity billing dispute resolved
A small business contacted us after receiving an unexpectedly high electricity bill, which they believed was based on incorrect meter readings from a neighbouring shop over 14 months. Despite disputing the charge and sending a letter of demand, the provider insisted the amount was owed.
ASBFEO wrote to the provider and supported the small business to continue negotiations with all the parties. This led to renewed discussions and a resolution: the amount owed by the small business was significantly reduced, and an agreement was reached for payment in instalments.
The business expressed gratitude for ASBFEO’s support in helping reach a fair outcome.
Resolving software-related GST reporting issue
A small consultancy business encountered a GST reporting error following a software update by a large national provider. The issue, identified by the business’s accountant, affected the accuracy of GST records and placed pressure on the business to meet tax obligations.
Despite multiple attempts, the business owner was unable to obtain meaningful support from the software provider. So, they contacted ASBFEO.
We explained our five-step dispute assistance process, provided a letter of concern template, and offered ongoing support. With this guidance, the business re-engaged constructively with the provider, leading to a resolution. The business was able to correct its GST reporting and claim eligible tax benefits.
The owner expressed strong appreciation for our support, noting the value of having a clear process and accessible assistance.
Point of sale and inventory management software
A number of small businesses contacted ASBFEO with issues with their point of sale and inventory management software platform provider due to the provider changing contract provisions. In particular, the businesses owners were directed to leave their current merchant service provider or otherwise pay much higher fees. For example, one business had their provider updating their online service agreement and deducting the inflated fees without formal authorisation.
The ASBFEO case manager helped the businesses through the 5 steps of dispute resolution and encouraged the business owners to communicate with the provider. The business owners were able to resolve the issue directly with the provider and negotiated a resolution.
This matter made it clear that before entering agreements, small business owners should consider the following:
• How is the contract renewed? Will it renew automatically?
• When do they need to cancel (this should be listed in the terms – but may be 30 days, 60 days)?
• Are they agreeing to new terms and conditions if their renewal is automatic?
• How will the provider notify them of new terms and conditions? Do they regularly check their spam folder to make sure they receive change-of-term notifications?
• Do they check the fees charged if they accept new terms and conditions?
Non-AFCA loan balloons
A matter was referred to our office in relation to a finance agreement between a small business and a non-Australian Financial Complaints Authority (AFCA) lender. The small business applied for a short-term loan of a few thousand dollars which required the family home as security. The interest rate was around 200% per annum and the finance agreement stipulated daily repayments with daily late fees applicable. The first few late payments would incur a $100 penalty, and the daily penalty would increase to $1,000 for each subsequent late payment.
Around 21 days into the agreement, the small business started experiencing difficulties in meeting the payments and the lender applied the daily penalty as outlined above. The small business made a lump sum payment of several hundred dollars to bring the account up to date. However, the lender applied the payment to accrued penalties rather than the scheduled payments. As a result, the loan remained in arrears and the lender continued applying the $1,000 per day late penalty.
The small businesses’ debt was increasing exponentially, rendering it unable to meet the payments and repay the penalties. The small business sought to resolve the issues with the lender on multiple occasions, but the lender offered only a payment plan and would not waive or suspend any of the late payment penalties.
Within 3 months, the debt ballooned to tens of thousands of dollars for an original financed amount of a few thousand. The lender placed a caveat on the small business owner’s home and moved to formal legal avenues. We are continuing to help resolve the matter, but this dispute highlights the difficulties a small business can face with a non-AFCA loan.
Fees for early termination
We were contacted by a sole trader who was disputing a termination payment. The sole trader, who lived interstate, signed a contract to provide services as a personal trainer at a gym in the other state. However, he realised he did not have the finances to support the move. Eighteen days after the contract was signed, he contacted the gym owner explaining his financial situation and stating that he didn’t know if he could afford the move. The gym owner asked if he would like to terminate, and he agreed.
The sole trader received a letter from the gym stating he now owed $12,000 for the termination fee due to his early exit of the agreement. He enquired why the fee had not been discussed when the termination was offered and was advised it was in the contract. The gym owner offered 2 options for payment, a $7,000 lump sum or a payment plan for $12,000 over 24 months. He was not able to resolve the matter with the gym owner. Our office wrote letters to the gym owner pointing out that the terms of the termination payment were not clearly outlined and were potentially an unfair contract term. The gym owner agreed to drop the termination fee, thereby resolving the matter.
Getting people on the same page
We support small businesses to work through payment disputes that can have a ripple effect and threaten the viability of other businesses.
For example, a contractor was hired as part of a telecommunications decommissioning of the 3G network. To complete this work the contractor hired subcontractors who then hired other subcontractors. After a period of non-communication from the initial contractor, one of our dedicated case managers reached out to the telecommunication company. Our case manager helped clarify the parameters of the dispute, which led to the small business being paid.
Finding solutions
We support small businesses to work through their stress and explore solutions. For example, during this quarter a small business owner took out a large personal loan to cover their tax debt.
The small business owner had received a garnishee notice that was higher than expected and the loan was unable to cover it.
When the small business owner approached our office, they were feeling stressed and distraught. A dedicated case manager provided support on the phone and assistance through the Tax Concierge Service.
This allowed the small business owner to consider their options, including accessing subsidised legal advice to help decide whether to lodge an Application for Review to the Australian Administrative Tribunal.
Business relationship remains intact
Our office assisted an overseas company with an outstanding balance owed to them after they had provided services to an Australia business. Because the pandemic was a challenging period for small businesses and both parties valued their relationship, they had previously agreed to a payment plan.
However, the overseas company had tried contacting the Australian business about the money owed on multiple occasions without success.
We assisted by providing information on the five steps of dispute resolution, the Australian business used this information to reestablish contact with the foreign company.
They received the outstanding payment and both parties retained their valuable relationship
Website updated to avoid confusion
The ASBFEO received a request for help from a small business owner whose business is based inside a hospital.
The small business owner advised the ASBFEO that he believed another business of the same nature was misleading customers, as wording on their website suggested their business was located at the hospital. As a result, the small business owner felt that consumers often mistook the other business for his business.
The small business owner attempted to resolve this matter directly with the other business, but was unable to get in contact with them.
The ASBFEO contacted the other business, who made immediate changes to their website to make it clearer that their business is not physically located in the hospital.
Subcontractor able to get on with her business
The ASBFEO was contacted by a medical professional who works as a subcontractor.
When she left her former practice, her name and details were not removed from the website and signage. This meant that patients were having trouble finding her at her new practice and were being directed to her former practice which she had left more than 12 months prior.
The subcontractor tried for seven months to get the former practice to update the details.
The ASBFEO contacted the former practice and the website has now been updated and the signage is being replaced.
Resolution reached with printing company
A small business owner contacted the ASBFEO about a range of issues with a printing company. Following our involvement, the printing company agreed to work through the issues directly with the small business owner.
The printing company contacted the ASBFEO recently as they were unable to negotiate a settlement with the small business and were seeking advice on next steps.
The ASBFEO encouraged both parties to try again to work it out instead of resorting to mediation.
After multiple phone calls with the parties, they agreed to share the remaining value of the dispute ($2,000 each), rather than attending mediation.
The parties also agreed on a way forward to keep their relationship amicable. The printing company will appoint a case manager to ensure lines of communication are always clear with the small business owner.
The small business owner was grateful for the help: “We would like to say thank you. Without your intervention we wouldn’t have been able to end the dispute in this win-win situation.”
Under the Australian Small Business and Family Enterprise Ombudsman Act 2015, The Ombudsman may publicise, in any way that the Ombudsman thinks appropriate, a businesses refusal to mediate.
2022
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BNG LOGISTICS AUSTRALIA PTY LTD
2017
DPG RESOURCES PTY LTD