Landmark federal court judgment could trigger proceedings against three other energy retailers
Energy retailers, including AGL, used Centrepay to continue to deduct money from the welfare payments of low-income Australians long after they had ceased being customers.Energy retailers, including AGL, used Centrepay to continue to deduct money from the welfare payments of low-income Australians long after they had ceased being customers.system to wrongly take welfare money from almost 500 people years after they ceased being customers, a court has ruled.
The court also found the company had broken retail law by failing to implement policies, systems and procedures to ensure they were complying with the energy retail rules.Centrepay was established in 1998 under the Howard government as a voluntary bill-paying service for people receiving Centrelink payments to make automatic deductions for essentials like rent and utilities.
Over the past decade, consumer advocates have raised concerns that several of the businesses registered to access Centrepay may be causing financial harm to vulnerable customers.
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