The law firm Maurice Blackburn is also advertising in QLD press for past clients to join their separate Aveo class action.
On their website they state they are looking at a separate area to Levitt Robinson, as follows:
The investigation by Maurice Blackburn will examine whether Aveo contracts are in contravention of Australian consumer law, particularly whether the contracts include terms that could be deemed unfair, unconscionable and potentially misleading and deceptive.
Aveo has been accused of charging exorbitant exit fees (also referred to by Aveo as deferred management fees). Typically the exit fee charged by Aveo is between 20 to 40%. Depending on the contract, the maximum amount payable can accrue after the resident has lived at the property for only two to three years.
In addition to the exit fee, there are other terms which have been alleged to be unfair and unconscionable such as the following:
- Capital gain/loss terms which entitle Aveo to 50% of any capital gain but the resident bears 100% responsibility for any capital loss;
- Expensive maintenance fees that continue after the unit has been vacated; and
- Terms which make it the resident’s responsibility for the costs of finding a new resident.
The contracts have further been alleged to be unnecessarily complex and confusing.
Whether they proceed with the class action will depend on how many ex-clients and their families sign up plus deliver valid complaints.