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Fact Sheet : Maths programs & loans PDF Print E-mail
 Case Study

Alice and Spiro have three children. They are all in school, two in primary school and one in high school. While out doing the grocery shopping they were approached by a salesman. He asked Spiro if he was interested in his children’s education. Spiro said “Of course.” The salesman offered them an obligation free demonstration of maths and English software that would help his children improve their maths. Spiro said “Ok.”

Another salesman came to their home. He brought his laptop computer. He showed the children the maths programs. They all enjoyed it. The salesman said that at $5000 the maths programs were heaps cheaper than paying for tutoring at $40 an hour.

Spiro and Alice were very unsure and they also didn’t have $5000. In fact, they were already having trouble paying for all their expenses. The salesman told them they could get finance. It was worth it and their children need it. It was eventually 11.30pm and Spiro and Alice signed the contract.

Now Spiro and Alice can’t afford the loan payments. The children don’t use the software as they say it was only interesting to use once or twice.


There are a number of companies that sell educational software. The software is usually expensive. The companies will arrange a loan for you to buy the software.

Ask the salesperson comes to your home to demonstrate the software you can feel under pressure to buy just to get the person to leave.

ALWAYS TAKE YOUR TIME TO CONSIDER WHETHER THE SOFTWARE AND LOAN ARE RIGHT FOR YOU. NEVER SIGN THE CONTRACT THAT DAY! SAY YOU NEED TO THINK ABOUT IT.

The sales person may say there is a cooling off period of five days. Usually the software is installed more than five days after the contract is signed, if you want to go ahead with the contract always negotiate a longer cooling off period so your children have a week to use the software to decide if it is useful. If you negotiate a longer cooling off period get this in writing.

The loan

If you want to go ahead with buying the software consider the following:

1. Buy a cheaper educational software program (around $100) and see if your children use it regularly. If they don’t, they are unlikely to use another program regularly.

2. Shop around to get the loan. You don’t have to get the loan they are offering. You may be able to get a loan on better terms elsewhere!

3. If you are at all unsure as to whether you can afford the loan repayment DON’T GO AHEAD with purchasing the software.

Help! I have signed the contract, can I get out?

At law, when you sign a contract, you are assumed to have read it and are bound by it. There are some exceptions that may mean you are not bound or you can reduce the amount you owe:

1. You were misled about the product and/or the loan

2. The contract is unjust

3. The product you were sold was not appropriate for the purpose you wanted it for.

If you believe one or more of the above exceptions apply to you the see our Guide: Challenging a maths software contract and related loan in the CTTT . For more information on the Consumer, Trade & Tenancy Tribunal (CTTT) see www.cttt.nsw.gov.au

Before going to the CTTT you can try the following:

1. If you have just bought the software and got the loan, check the contract as you may be within the cooling off period. If you are and you don’t want to go ahead, notify both the maths company and the credit provider immediately in writing, see Sample Letter : Maths Programs : Rescission . Keep a copy of your letter.

2. Ring the company and say you are dissatisfied with the product. Say why. Ask for your money back.

3. Rescind the contract. This is when you say that the contract has to be cancelled because:
a. The software does not work;
b. The software does not work on your computer;
c. Your children had learning disability making the software inappropriate;
d. The features of the software were misrepresented.

4. Put your complaint in writing to the sales company. See Sample Letter: Raising a dispute with maths software products.

5. Complain to the Office of Fair Trading at www.fairtrading.nsw.gov.au

Contracts cannot be cancelled for minor reasons. It has to be a major problem which means the software does not work or it is completely inappropriate for the purpose. If you are unsure get legal advice.

I don’t think I can get out of the contract but I am having trouble paying – what can I do?

See Fact Sheet : Hardship variations on consumer loans and Fact Sheet : Can't pay your loan?

Need some more help? For a list of additional resources, click here.

 
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