CompassCorp Pty Ltd trading as Compass Claims (Compass) will amend its advertising and sales practices following an investigation by the ACCC.
Compass is a credit hire business which provides hire cars to consumers who are not at fault in car accidents. Compass is one of the largest providers of these services in Australia.
The ACCC considered Compass was misrepresenting in brochures, its website and in phone calls that consumers who engaged Compass would not be liable for hire car charges or associated costs. Although Compass waived those charges, its contract only required Compass to do so if it was able to recover the charges from the at-fault party or their insurer.
The ACCC also considered Compass represented that consumers would not have to take any further steps to recover costs arising from their car hire. Instead, a consumer was required to assist Compass, which could include authorising court action in the consumer’s name, providing witness statements and attending court.
Compass cooperated with the ACCC’s investigation and has made several changes to its advertising, call centre procedures and sales practices to inform consumers of hire charges and their obligation to provide assistance.
“The ACCC will review the marketing and sales practices of other credit hire businesses and will pursue businesses that mislead consumers,” ACCC Deputy Chair Delia Rickard said.