Urgent Inquiry Demanded into Strata Management Industry
Consumer groups are demanding an urgent federal inquiry into the strata management industry following an exposé revealing widespread unethical practices and hidden fees.
The call for action comes in response to an ABC Four Corners investigation that uncovered instances of strata managers recommending more expensive insurance policies, charging exorbitant fees for unclear services, and engaging in harmful debt recovery practices.
The coalition of consumer groups, including Choice and the Owners Corporation Network, urges Treasurer Jim Chalmers to direct the ACCC or the Productivity Commission to conduct a comprehensive investigation. This call has received support from the NSW and Queensland governments, as well as industry groups.
Key concerns include "widespread questionable, unethical or unlawful practices by strata managers," lack of transparency, inadequate oversight, and harmful debt recovery practices. One signatory reported over 140 cases of alleged unlawful insurance broker appointments, causing significant financial harm.
The NSW government has introduced a bill to boost oversight, but consumer groups believe a federal inquiry is necessary to ensure consistent consumer protection across all states and territories.
The ACCC's involvement is crucial due to its ability to pursue legal action and compel information disclosure. This could lead to court orders for redress and ensure accountability within the industry.
The Real Estate Institute of NSW acknowledges the need for an inquiry to restore trust in the sector. They recognize that the current oversight mechanisms have proven inadequate and that the unethical practices of a few have tarnished the reputation of the entire industry.
The federal government has expressed concern and is open to dialogue about potential solutions. The ACCC's previous inquiry into the supermarket sector demonstrates its willingness to investigate and address concerns over pricing and consumer protection.
This call for a federal inquiry represents a significant step towards protecting apartment owners and ensuring ethical practices within the strata management industry. The investigation's findings and subsequent recommendations will be crucial in shaping the future of strata management and safeguarding the interests of millions of Australians who reside in apartment buildings.