Truck shops preying on South Auckland's poor

  • Breaking
  • 27/11/2008

The Commerce Commission has issued a warning to a mobile truck shop Stop To Shop.

Stop To Shop sells clothing at your door and has 28 trucks in operation. If that sounds like a lot, the company is one of many plying its trade, from trucks, on urban New Zealand streets - particularly in South Auckland.

Critics say they operate ongoing accounts, with few or no statements, and they target low-income or beneficiary families with tempting offers of easy credit.

Margaret Perry is a mother of seven with another on the way. She is at home most days and likes to shop with the local mobile trucks.

"They are very, very polite," she says. "They come knocking on my door and they use really good manners."

She says they have been knocking more than ever recently.

"The door knocks have increased. There are about 10 new trucks out there that I haven't seen before."

She is not alone. Mobile truck shops here in South Auckland are everywhere, and the temptation to shop is huge. But it comes at a price.

"I know I am getting ripped off," says Ms Perry.
 
She recently purchased two tracksuits, a t-shirt and a pair of shorts for just under $300.

Darryl Evans of Mangere Budgeting Services says the truck operators are dealing like money lenders, operating on credit, and are becoming greedier with new schemes that target poverty-stricken families.

"The problem in South Auckland is 10-fold now. Even recently we've seen a company selling meat packs worth $500 dollars for $2000 dollars. How they get the families to buy in is they give the families a $100 KFC voucher."

Home Direct is one of the mobile trucks that frequent these streets. When Campbell Live asked to take a look at their prices, the driver instead left.

Another company Ms Perry owes money to is The Good Guys. She pays her money through direct debit, and is unsure how much she owes.

Even still her access to more is never questioned.

"I've been with Good Guys for 17 years," says Ms Perry. "I can book up to $1000 worth of shopping of clothes, or blankets or shampoo, conditioner, perfumes, Treasures for my baby. I can spend $1000 worth of stuff in one day."

Campbell Live asked The Good Guys whether it was a good idea to offer credit to a beneficiary with seven children living in a state house. The driver was evasive.

"I don't know," he kept repeating.

They did not want to talk either, but Lync, another mobile truck company who claims to be cheaper than the rest, let us aboard to inspect.

"Retails shop normally double their price but they get the money straight away," says Jian Sio. "We more than double 'cause we don't get the money straight away."

He claims times are tough and sales are down..

"Some salesmen are out all day and only get one sale," he says.

Ms Perry pays nearly $200 a week in repayments.

"I got a mobile phone," she says. "It's worth only about $100 but you got to pay for the packaging, and sometimes it comes from different countries so you got to pay for all that too. So instead of paying $179 I pay about $400 extra."

She thinks this is okay, because "I don't have to pay in lump sum. If I go out to a Pak 'N Save or Dollar Dealers, you got to come up with the money outright. I only get paid weekly."

The Commerce Commission needs fast Government action to outlaw certain practices," says Mr Evans.

"I have Good Guys, ring Dave sometimes," says Ms Perry. "I've been with Good Guys for 17 years and they've done me well. Every year a $100 voucher for birthdays to spend on clothes."

source: newshub archive