Following on from my last news snippet about fixed-term contracts, I’m going explain what the Consumer Protection Act says about pre-authorisation requirements of repair or maintenance work in this article.

Question of the Week: Can suppliers charge more than they quote for?
The short answer is no. Not unless you have authorised them to continue working once they have exceeded the original estimate.

What you need to know

• Suppliers must provide consumers with an estimate and have this estimate approved before they begin working.
• Two exceptions:
  • When the consumer has declined the offer of an estimate in writing and has authorised the work
  • When the consumer has pre-authorised charges up to a specific maximum in writing and charges do not exceed that maximum.
• Suppliers must not charge the consumer for preparing an estimate, or for work required to complete the estimate, unless they have disclosed the price for it and the consumer has approved it.
• The supplier cannot charge more than this estimate unless they inform the consumer of the additional costs and receive authorisation to continue. [Ch 2, Part C]

Interesting Fact
The Minister may, by notice in the Gazette, prescribe a monetary threshold for when an estimate is necessary.

Read more articles in this series.