[UPDATE: Resolved (pending)] Taking Allianz to Tribunal - Please advise

EDIT: Despite negative comments, I think my efforts paid off (no pun intended). Received an email from Allianz offering settlement covering all costs associated. I am planning to take it. Will update if any issues.


Hi all,

tl;dr: Spent two months trying to get a refund for a proven faulty battery sold to me by Allianz Roadside which is still covered under warranty with no luck

I am taking Allianz to Civil and Administrive Tribunal in NSW - Can I get some advice since I've never had experience with NCAT, specifically:

  • As far as I've read up, consumer laws entitle me to a refund and not just an exchange if the product is entirely faulty - is it 'against the law' so to speak to deny a refund and only offer an exchange in this scenario?
  • Am I entitled to costs I incurred as a result of Allianz's faulty diagnosis? (e.g. battery tests)
  • Can I be compensated for time lost (with money)? I've spent two months chasing up this issue
  • Should I get someone to represent me? I can't really afford this but maybe there are alternatives

Long story:

I purchased a battery from Allianz Roadside Assistance for $160 in December 2015. In May 2016, my car wouldn't start. I had a family friend/mechanic with over 30 years experience inspect the car on the 19th of May. He charged the battery for long hours yet the battery died shortly after being placed in the car. Alternator and all other car parts were tested and all was fine so the battery was definitely the problem.

I contacted Allianz Roadside to explain the scenario since my battery is still under warranty. They charged me a $100 call-out fee to come out and assess the battery since I was no longer a member - however, I was told I would be re-reimbursed if their battery was deemed faulty. The Allianz technician assessed the battery and agreed it was faulty. He made a call to his supervisor, and once finished, his mind had suddenly changed and claimed it was various other causes. We argued back and forth but he was adamant.

As a result, I got the car and battery tested by two independent companies - Battery World and Caltex. Both tests show that the battery is undeniably faulty. It is incapable of holding charge. The car is fine. This cost me an additional $200 including a new battery. I put this battery in my car and there have been no issues since.

I emailed Allianz Customer Feedback and explained the above with reports to prove. I requested a full refund as well as compensation for the associated costs which are as a result of Allianz's faulty judgement. I received a response from a representative who pulled everything he could from the T&Cs of the warranty's to try to avoid any form of compensation (none of which apply e.g. abnormal use!?). He did, however, refunded the call-out fee as a gesture of "good will" and nothing else. After I pressed the issue, he said I could arrange roadside to come assess the battery again (He told the assistant who answered my call to charge an additional $100 call-out fee for this but I argued enough to get out of it).

Eventually, Allianz came by and the test conducted proved the battery was faulty. I contacted the representative again for a reimbursement and did not received a response, even after a follow up email. I contacted NSW Fair Trading and they liaised with Allianz and eventually offered an exchange but still denied any further compensation (refund or additional costs). I declined this offer as firstly, I am entitled to a refund for a completely unusable product by law, secondly I don't want to deal with Allianz ever again if the battery were to fail in future and lastly I am still $200 in debt due to Allianz's faulty judgment not to mention countless hours wasted over 2 months trying to consolidate this.

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Comments

    • +33

      Actually I did the tests on my car entirely because Allianz insisted that it wasn't their battery. I needed to know what the issue was, right? They blamed it on my alternator and a range of other things (in my opinion just to get out of the refund). Plus I had to purchase a new battery since my car couldnt make it anywhere without dying.

      and yes I expect the money back - it cost me $100 for call out fee, $160 for battery original battery, $200 in tests entirely because they didn't want to exchange the original battery. If they had just exchanged the battery then I wouldn't be asking for any of this now.

      I don't browse ozbargain because I have money to throw ;)

        • -5

          there is no law that requires a supplier to issue a refund on a minor fault ( yes this would be a minor fault ), the criteria for a major fault is very specific and you may interpret it as you wish , but this would be considered a minor fault, you have the right to request the refund , they have the right to choose to repair/replace.

          the item has been used for ~5 months. a full refund is unreasonable. op should be thankful that the supplier is providing a replacement item and not a partial refund.

        • +1

          @whooah1979:

          the item has been used for ~5 months

          " I put another battery in my car and there have been no issues since"

          My understanding is that the battery supplied by Allianz did not work at all and op bought a new one separately

        • @quietsarcasm:

          My understanding is that the battery supplied by Allianz did not work at all and op bought a new one separately

          op>

          I purchased a battery from Allianz Roadside Assistance for $160 in December 2015. In May 2016, my car wouldn't start.

        • @whooah1979: Fair enough. Missed that

        • +9

          ultimately , you are taking them to tribunal so the law is meaningless since you are going to negotiate with them and they will probably not bother showing up and just settle the matter beforehand.

          Actually I just recieved a settlement from Allianz so I guess my effort wasn't wasted. Glad I didn't listen to you.

          it does not matter if you only did it because of x, the cost is unreasonable compared to the price of the product, you can not spend 50$ diagnosing a issue with a 40$ product and expect 90$ returned to you from the supplier of the product.

          It cost $200 including a new battery I don't know why that's unreasonable. Tests were done on the entire car not just the battery

          there is no law that requires a supplier to issue a refund on a minor fault

          So you call a product that's completely broken and literally doesn't do what it's meant to 'minor' fault? Even consumer affairs NSW defines this as a major fault

        • -2

          @ddab568:
          1 - i said they would settle.
          2 - you specifically said 200$ in tests, maybe you meant tests + replacement battery but that is not what you said , so it changes things greatly , 40$ for a diagnostic on a 160$ item = reasonable.
          3 - yes , its a minor fault as defined by the ACCC

          "A purchased item has a major problem when it:

          has a problem that would have stopped someone from buying the item if they had known about it
          is unsafe
          is significantly different from the sample or description
          doesn’t do what you said it would, or what the consumer asked for and can’t easily be fixed."

          point one and four are ambiguous but really only apply to issues that are fundamentally wrong with the product and a working replacement would not resolve

          as i said interpret it as you wish.

        • +3

          @Settero:
          From ACCC:

          If the business fails to give you a free repair within a reasonable time or cannot fix your problem, you can:

          • get it done elsewhere and pass on - the costs to the business
          • ask for a replacement
          • ask for a refund

          Reasonable time is critical here given I had to get consumer affairs involved just to get a replacement. Should I just not use my car for two months while I wait on Allianz to decide on a replacement?

        • +3

          @whooah1979:

          5 months is good use for a product that's meant to last at least 3 years. Oh wait.

        • -1

          @ddab568:

          5 months is good use for a product that's meant to last at least 3 years. Oh wait.

          a replacement item or a partial refund based on the number of months left on the warranty would be a reasonable remedy.

        • +8

          @whooah1979: A partial refund would not be considered a reasonable remedy given that in the event of a major failure (such as a toaster that will not toast, a battery that doesn't provide power etc..) the consumer is entitled to the choice between a refund or replacement. That is a full refund of the original purchase price.

        • -3

          @ddab568:

          get it done elsewhere and pass on - the costs to the business
          ask for a replacement
          ask for a refund

          hmmm. your post is misleading. you're quoting the repairs section for minor problems in reply to Settero post about major problems.

          Repairs
          If the problem with a product or service is minor, you must accept a free repair if the business offers you one.
          If the business fails to give you a free repair within a reasonable time or cannot fix your problem, you can:
          get it done elsewhere and pass on the costs to the business
          ask for a replacement
          ask for a refund
          recover compensation for the drop in value below the price paid.
          https://www.accc.gov.au/consumers/consumer-rights-guarantees…

        • -3

          @crayner:

          the consumer is entitled to the choice between a refund or replacement.

          the consumer is entitled to ask for a replacement or refund. the consumer isn't entitled to demand a refund over a replacement item.
          https://www.accc.gov.au/consumers/consumer-rights-guarantees…

        • +4

          @whooah1979: The consumer is indeed entitled to a choice between a full refund or replacement in the event of a major failure. The retailer cannot insist upon either of these remedies, in this situation it is up to the consumer. Pretty basic stuff.

          https://www.accc.gov.au/business/treating-customers-fairly/c…

          If the problem is major or cannot be fixed, the consumer can choose to:

          reject the goods and obtain a full refund or replacement, or
          keep the goods and seek compensation for the reduction in value of the goods.

        • +3

          @Settero:

          Huh? You say it's minor, but it's clearly major based on what you've written here. It satisfies criteria 1, 3 and 4, and potentially even 2 in some situations.

        • +4

          @Settero:
          Major Failure as defined by the accc: a reasonable consumer would not have bought the product if they had known about the problem. For example, no reasonable consumer would buy a washing machine if they knew the motor was going to burn out after three months

          Replace "washing machine" and "motor" with "car battery"

          No interpretation there lol!

          Source:
          https://www.accc.gov.au/publications/electrical-whitegoods-a…

        • +3

          @Settero:
          what a silly comment. I'm out of neg votes for 24 hours but just wanted to say that your opinion on major faults, warranties and consumer law are all stuffed up (imo).

      • $200 in tests

        $100 for each batt test. you got scammed hard on that one.

        • That included a new battery. It's not a scam. It's not just a battery test - I did an entire check of the car since I was told it "wasn't" the battery.

        • @ddab568: Still, a lot of battery places will do a test for free. The reason they do this is because it only takes a few seconds and you'll often buy a battery on the spot.

        • @Euphemistic:
          They don't know if they get the battery sale after in this instance.. Maybe that's why there's a charge.

        • @ankor: but there are still plenty of places that will do a test for you for free as good customer service.

  • I advise take replacement and move on - not worth it!

    • +22

      I expected this kind of reaction but do you realise that after 2 months of contact with Allianz they only came to the compromise of giving me a replacement because I contacted consumer affairs? I think it's easier for people here to tell me to drop it because this didn't affect anyone else in the slightest. But in the big picture, it does, because I'm gonna be one in probably 10 customers that will actually not let something enitrely illegal pass just because I'm up against big company

      • +12

        If you have the time and money, I say don't give up. ITS WORTH IT! They must think they will get away eventually if they keep saying no to your request. But definitely recommend getting a lawyer to consult with. And make sure you keep all records. Try to avoid phone communication as that does not become a hard evidence, keep every communication via email.

      • +8

        "All that is necessary for the triumph of evil is that good men do nothing." (Edmund Burke)

        Glad you stood up for yourself.

        • +1

          Realistically though they aren't evil, it's not like Allianz deliberately gave him a faulty battery. They probably buy them in bulk from a supplier. The roadside guy's a bit dodgy, maybe doesn't get paid commission for this, probably doesn't deal with a lot of refunds and has no idea what anyone else has promised.

          Then when he emails Allianz's customer service they don't know what's going on because roadside assistance is another department. Then they need somebody else to sign off on two reimbursements for an ex-customer and the costs of his tests, which is probably unusual.

          I mean the guy is entitled to his money back but it seem more like a comedy of errors than pure evil.

        • +4

          @rump parliament:

          I know the faulty battery wasn't deliberate. Batteries fail unexpectedly all the time - dead cells, internal issues, blah blah. It's besides the point. They knew what was going on because they liaised with the technician and attached the reports and notes he took at the time of the incident in our email exchange. It may have been a mistake but it's bad judgement to tell a customer they're wrong when they have 3 sources of proof. They should have just accepted the first proof and done proper testing instead of dismissing me like an idiot.

          I seriously don't buy that it was a "comedy of errors" - in this instance I have no doubt there was a stingy motive

          Also

          gave him a faulty battery
          the guy is entitled

          I'm female :(

        • +1

          @ddab568: I respect your gender choice. :P

          Also, good on you for sticking to your guns. A warranty isn't just a collection of words, it's a legally binding document.

  • You should be able to get the call-out fee and battery cost back from Allianz. If you can prove that Allianz requested an independent test then you might get the battery test cost back. If you just got these tests yourself then probably not, especially not for both tests. You won't get anything for your time wasted.

  • -1

    Kmart auto provides free battery check so 20 seconds on Google search could have saved you money.

    https://www.ktas.com.au/batteries/

    Battery World Bankstown did my car`s battery check twice and they did not charge anything. I am not sure why you paid them $100.

    Did you pay via credit card? If yes, why chargeback was never lodged?

  • +11

    I would go against everyone here and think the claims you are making are very reasonable. IANAL so maybe get a legal advice (Local Community centres offer them for free, look them up).

    I would first suggest writing a demand letter (look up how to write them), List all the details but make it brief. Look up online on what else needs to be included like no of days, consequence of not paying and all.

    My guess is they are going to settle with you as it is very expensive for them to go-to court where they will have to pay for at-least a mid level executive to attend and will have to pay for the battery if they loose.

    I think it is reasonable for you to expect all of this when they charged you 100 to look up a battery with warranty (36 Months) and still denied fault. Unfortunately there is no claiming cost on both sides and the time you wasted on this cannot be compensated

    • +11

      Thanks for your post and postive help. I believe I just I won since I am now being offered settlement of the exact price I quoted. No need for court anymore.

      • +9

        Good to hear the news and best of luck. I was surprised by peoples comments for a battery that was only 6 months old. I certainly hope this doesn't happen to anyone who is not willing to fight.

      • Good on you, give them curry. A lot of bigger companies seem to specialize in excuses and dragging things out until the customer gives up. Always happy when one of the sucker customers wins and even more so if they win deservedly.

  • +11

    Nothing to advise but i like to say good on you for putting up the fight and not giving up. These suckers need to own up to their responsibilities and have been taking many consumers for granted. I hope you win and they compensate you for all the inconvenience.

  • ?????????????????

  • +4

    Happy to hear that it is resolved and you won't be out-of-pocket.

  • +7

    All i can say is good for you for sticking to your guns, most people would of caved in. That situation where they sent someone out, and found it faulty, then the guy turns around and says its not faulty is very strange indeed.

  • +3

    Good on you. I also would have pursued it and since you were in the right all along, it was always going to come out in your favour.

    I'm glad that there are people out there that hold these places accountable. You were totally in the right and they were wrong.

  • +2

    I say good on you ddab568.
    Some businesses are a law unto themselves and it is people like yourself that help to weed the unscrupulous out.
    The business should have to pay all costs associated with proving them at fault.

  • +3

    Congrats and good on you for fighting them, they are a disgrace for putting you through all that hassle. I'll never give them my custom.
    (Our car battery died a few years ago whilst on holiday - our fault, we and the kids stopped at the beach and a friend stayed in the car listening to the radio, and the lights might have also been on… - called out nmra who replaced the battery for their usual fee. Roll forward to a month before the battery warranty ended - which I didn't know - and the car wouldn't start, so called out the nmra. The guy told me it was the battery, and he said their computer system said it was still under warranty and he replaced battery free of charge. Very happy with nmra.)

    • +1

      Wow thank you, I know who to go with in future!

  • +2

    well done, most would have taken it from behind without lube off a corporate and they obviously expected you to as well.
    persistence paid off.

  • +1

    Those a-holes! Bet that battery was sitting in a warehouse for over a year too.

  • +1

    I'm happy to hear about your case. Good on you! This makes me wonder why do people do this? Are they, at a certain level in their careers, likely to not exercise reasonable judgement and generally good customer service? It's not even their money, what's the deal with blatantly denying claims and picking on the little guy (customer). Maybe that's what they get paid for? To go to work and that means get a kick out of giving people hard times.

    • +1

      I also found it really hard to comprehend - I'm not exactly business minded but I figure it's more important to maintain customer happiness than saving miniscule amount of money. I initially asked for an exchange and only escalated to refund when I was treated poorly. It's not like I was claiming thousands of dollars. It was a $160 product that was faulty - in the grand scheme of things I don't know why you wouldn't just provide an exchange straight up.

      • +1

        You're today in the right man. Keep it up. I would have fought too.

  • +2

    Good on you OP! Hope you win the battle!

  • +3

    thumbs up for sticking to it and following through. I had a similar issue with them and had my house and cars insured. long story short I had collected irrefutable evidence over time and called their bluff and was also payed out in the end. called up to cancel all my cars as well - when asked why - it felt damn good to say - coz you're crap. they didnt even try to keep my policies or anything LOL

  • +4

    I bet most of this type of dodgy businesses have a procedure for their customer service to ignore and bury the problem as much as they can. Once you go through an official complaint channels (ombudsman, court), though, they switch on their "complaint resolution mode on" and it all goes like a hot knife through the butter. Had same experience myself few times with different big corps.

  • +3

    Good on you!!

  • +3

    This is so simple.

    If you can prove that their battery was faulty with whatever tests you did and it has a warranty longer than the amount of time it took to stop working - then you win hands down.

    Because of the nature of the product being that it is a requirement for day to day use - specially if it is a requirement for you to be able to go about your own work duties - it will be treated as an emergency issue - and as such if Allianz did not treat it as an emergency issue and did not go out of their way to test their own product (in a timely manner) which other experts have found faulty - then they should cover all your costs including:

    • Purchase of alternative product due to their unreasonably lengthy turn around times
    • Payment for experts to test their own product which they really should have done themselves to properly determine if their product is faulty
    • Your time and any loss of income you reasonably had to undertake to find the root cause of the issue which ended up turning out to be their faulty product which was still under warranty.

    For your information - Fair Trading complaints cost the company you are dealing with something around $30 for registering the complaint and then there are about 5 levels of escalation if no agreement can be made which have some kind of sliding scale increase in fees against the company (where each level costs an additional $60 or more if a resolution is not met)

    My advice is to continue to escalate until you get what you want. Allianz will continue to make offers which you do not have to accept.

    Once the complaint reaches the last level of escalation - if neither party can come to an agreement - Fair Trading itself will decide your compensation.

    Fair Trading leans heavily toward the consumer. This case seems to be quite clear cut - I would say they would be entirely on your side.

    Once the case gets to a point where Allianz sees no further gain from bargaining down offers (because of the fees it will cost them and your determination) they will eventually fold - unless you happen to be asking for an amount substantially greater than the fees it will cost them to continue to decline a resolution.

    • +2

      Thanks for your response! However, I will take the settlement because I seriously don't want to deal with this anymore. 2 months of my time was wasted on this. It wasn't about the money at all quite seriously. I was just super annoyed that I was being dragged through the mud and treated unfairly.

      • Does this mean that they have waived all their callout fees, reimbursed you for the battery tests you have undertaken and refunded you the cost of the replacement battery you had to purchase?

        • +1

          They are giving me the full amount that I quoted which covers everything plus time wasted.

        • +3

          @ddab568:

          Very nice. Their social media managers have probably been having kittens, since this post would be seen by so many people.

  • +1

    Well done that OP!

  • Nice, but you should have gotten more for all the effort you put in.

    Maybe if you took them onto court it would have been a better case as you have the proof.

    Can you charge an insurance company with insurance fraud?

    xD

  • Yeah can't believe they are making it so hard over a friggin battery! Such an ironic service compared to their ad. Glad you are getting your money back. Make sure you leave this story on the net so other potential customers can be warned. I'm definitely not going with Allianz.

  • +4

    OP, you're a champion.

    Good on you for sorting it out. Only through people like you sticking to their guns will companies change their behaviour. If it's harder (more expensive) to screw customers then it will force them to do the right thing in the first place. All the effort in complaints handling, multiple callouts and escalations can become expensive for a company to deal with. It also hurts them when people post the "behind the scenes" tactics in public because this has an impact on sales.

    A tip of my hat to you.

  • +2

    Does anyone think of ddab568's case whenever they see an Allianz ad on TV? It's a topic of conversation too. If any of my friends comments on the ad/ their car insurance I just tell them why not to go with Allianz.

    • +1

      Most insurance company are crap. They will do everything they can just to avoid paying, especially health insurance. You will have a hard time finding a good one, you will hear bad stories about every insurance company in the world. Read the T&C and buy what suits your need.

  • OP can please give a comment on what all your costs were and what costs Allianz are paying you?
    How many hours total did you invest ?
    Also, would you do it again, was it worth it?

    It's great that you won, in the principle of it good trumps evil !

    But what sux is that Alllianz (just like most other big businesses) makes it so damn difficult and frustrating that most people just give up. Then big business simply does not need to change and they will keep screwing people.

    • I'm trying to answer without making out that I'm some sort of hero lol. Firstly, I should probably note the settlement hasn't hit my bank account yet so I can't say it's fully resolved until that's done. But anyway:

      OP can please give a comment on what all your costs were and what costs Allianz are paying you?

      I'd rather not go into too much detail about this but honestly speaking what I requested was what I got and it was a modest amount. It covered all costs mentioned (battery/testing/callout) plus tribunal fee plus a slight addition for wasting my time.

      I want to make it really clear that I didn't do this for money. I did it to cover basic costs that I incurred but more so to prove a point that I wasn't going to be treated unfairly without retaliating.

      How many hours total did you invest ?

      I spent 2 months chasing up this issue. I can't give you an exact figure but I can say I sent a total of 5 emails to customer service and made about the same number of calls. Not to mention filling out a form to fair trading and then when that failed I filled out a form to the tribunal. My dad and family friend (mechanic) were also heavily involved and their time was significantly wasted. Can't tell you the number of times I felt like throwing in the towel.

      Also, would you do it again, was it worth it?

      I'd do it again if it needs to be done - it wasn't fun. It was "worth it" in the sense that I'm glad it went my way in the very end. Dodgy companies deserve to be put on blast.

  • +3

    Good on you for fighting this. Hopefully this experience will encourage the company to follow the rules.

  • Congrats!

  • +2

    I cant understand why half this forum is on this guys case.

    A battery should not last 6 months, fullstop.

    Would you accept that on any consumer durable? Then why would you accept it here? Why wouldnt any normal company refund this guy 100% just to get rid of him?

    I bought a battery from kmart - they refunded me no questions.

    Kmart, a rinky dink consumer store selling $2 shirts from china has better customer support than Allianz, a billion dollar diversified multinational? But why am I not surprised… insurance company takes its shitty insurance company policies to other aspects of its business…

    • I actually think there was at least 80% of fellow OZB agreed with OP on her case. The remaining percentage Idk.. It's a no brainer. Guess it'd only become their concern when it happens to them.

      A couple comments from the beginning were down-voted to oblivion btw.

  • +2

    I actually went through the same thing with NRMA. Purchased a battery costing $180 and 6 months later it was completely dead. We tried charging it and it started and died 10 min later. The car was actually my nans who had passed away and in that time the car ran out of rego.
    NRMA came out, jump started the car, charged the battery up and said it was running less than 2 volts and that he had fixed it. We left it running, he left and 10 min later again the car died. NRMA said because our car was now unregistered they wouldn't come out again but we needed the battery to be replaced so we could get a pink slip and get it registered.

    We ended up swapping batteries, getting a pink slip and getting it registered and then we called them out again.. this time he blamed the alternator.. we knew for a fact it wasn't as we had swapped batteries and the car worked perfectly. He argued with us for an hour saying there was nothing wrong with the battery and we would have to buy a new one. He left. We called them out again.. wasn't going to give up as we knew exactly what the issue was. Eventually they decided to replace it after 4 call outs. They took the battery out of our car and charged it over night, received a call saying yes the battery is faulty and they will send someone out to fix it.

    This in total took about 2 months as well as we couldn't register the car without a battery and they wouldn't come out unless it was registered. It was extremely stressful and they tried everything in their power to blame our car rather then the faulty battery..

    Glad yours was sorted !

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