The Law Handbook 2024

716 Section 7: Consumers, contracts, the internet and copyright VCAT has unlimited jurisdiction (i.e. claims for any amount) under this section. However, VCAT will treat ‘small claims’ where the amount involved in the dispute is less than $15 000 more informally, for example, with respect to costs and legal representation (for further details, see ‘Small claims: VCAT’s Civil Claims List’, below). VCAT is not as expensive as the courts and is generally very effective in resolving many consumer problems. NOTE Since 1 July 2010, VCAT has not had jurisdiction over consumer credit under the Consumer Credit (Victoria) Act 1995 (Vic). The National Consumer Credit Protection Act 2009 (Cth) gives jurisdiction over consumer credit only to the federal courts, and external dispute resolution schemes. (For more information, see Chapter 5.7: Understanding credit and finance.) Actions relating to a breach of contract may also be commenced in the Magistrates, County, Supreme or Federal Court, depending on the amount of money involved and the relevant legislation. Another alternative is to submit the dispute to arbitration or mediation. Courts and VCAT now operate a mediation system in some circumstances. For further details, see ‘Magistrates’ Court: Arbitration’ and ‘Mediation’ in Chapter 1.2: An introduction to the courts. For disputes in the County, Supreme and federal courts, a court-approved mediator is appointed, when appropriate, prior to the hearing. Even when court proceedings are referred to a mediator, the court will retain power to order remedies. If the mediation fails, the court will proceed to hear the matter. Alternative dispute resolution schemes An alternative to the traditional court and tribunal system is to utilise private dispute resolution schemes. The particular industry you are dealing with might operate such a scheme, which include the following: • The Energy and Water Ombudsman Victoria (EWOV) investigates and facilitates the res­ olution of complaints and disputes by consumers against electricity, gas and water providers. Binding determinations can be made up to the value of $20000 or $50000 with the consent of all parties. • The Telecommunications Industry Ombuds­ man ( TIO ) investigates and facilitates the resolution of complaints and disputes by consumers against telecommunications service providers, including landline, mobile phone and internet services. The TIO can handle complaints where the consumer became aware of the complaint event up to six years before coming to the TIO. However, the TIO will not investigate complaints where legal proceedings have commenced. The TIO can make binding decisions with awards of compensation up to $100000. • The Australian Financial Complaints Authority (AFCA) replaced the Financial Ombudsman Service, the Credit and Investments Ombudsman, and the Superannuation Complaints Tribunal on 1 November 2018. AFCA deals with complaints from consumers and small businesses about all financial service entities (including banks, credit unions, brokers, financial planners, insurers, superannuation funds, finance companies, payday lenders, and debt collectors). AFCA can consider consumer complaints worth up to $1.085 million and can award up to $542500 in compensation. For small businesses, compensation is capped at $1.085 million. For primary producers, compensation is capped at $2.17 million. AFCA can consider disputes about credit facilities of up to $5.425 million. • Domestic BuildingDispute ResolutionVictoria (DBDRV) is an independent government agency that resolves domestic (residential) building disputes. The focus is on conciliation, which involves bringing together both parties to discuss and resolve matters in dispute. The DBDRV can appoint qualified expert assessors to conduct building assessments to assist the resolution process. If conciliation does not resolve the dispute, the Chief Dispute Resolution Officer has the power to issue binding dispute resolution orders and certificates. Parties involved in DBDRV dispute resolution have the right to apply to VCAT for a review of certain actions and decisions made by the DBDRV. • The Public Transport Ombudsman (PTO) investigates and facilitates the resolution of complaints from people using and affected by public transport in Victoria. This includes complaints about metropolitan and regional trains, trams and buses, as well as ticketing systems and impacts of public transport works. The PTO can deal with complaints about: