Hundreds of Australian customers have launched a class action against retail chain Harvey Norman and related finance provider Latitude Finance, alleging they were misled by advertisements for long‑term "interest‑free" deals and were instead signed up for credit cards and charged unexpected fees.
Carter Capner Law on Monday said it had begun the legal challenge on behalf of customers who were lured by store promotions, radio and television advertisements and catalogues that promised 60‑month interest‑free, no‑deposit payment terms. The firm said group members were later hit with establishment fees, monthly account service charges and, in some cases, credit limits they had not requested.
The class action follows a Federal Court ruling in October 2024 that found Harvey Norman and Latitude Finance had misled consumers by advertising the 60‑month interest‑free offer without making clear the requirement to open a credit account and the fees that could apply. The Full Federal Court unanimously dismissed appeals by Latitude and Harvey Norman on Sept. 4, describing the companies' challenges as "barely arguable."
Peter Carter, director of Carter Capner Law, said the national advertising campaign — run thousands of times across print, radio and television between January 2020 and August 2021 — led consumers to assume they were signing for an instalment plan that would cost a fixed price until the goods were paid off. "The deal being spruiked was vastly different to what Harvey Norman promised, with consumers having to sign up for credit cards and being hit with fees and charges not advertised," he said.
Carter Capner Law provided examples of alleged consumer harm. One Adelaide shopper who bought a television and a games console said he was compelled to sign up for a GO Mastercard issued by Latitude Finance and later discovered a $25 setup fee and a monthly service charge that began at $5.95 and increased to $8.95. The customer said the account was assigned a $10,000 credit limit he had not sought. Another consumer from Goulburn, New South Wales, who believed he had purchased a laptop on interest‑free terms said he received a credit card with a $2,500 limit and would face roughly $550 in fees over five years.
The law firm also alleged that sales staff often collected customers' personal information, including bank details, and completed credit applications on their behalf, with limits and terms set by the credit provider after an internal assessment.
Regulatory concerns about the advertisements were raised by the Australian Securities and Investments Commission (ASIC), which flagged that the promotional material could mask the requirement to open a credit card and the potential liability for establishment and monthly service fees. In its judgment, the Full Court rejected the defense advanced by Harvey Norman and Latitude that consumers "would know it was too good to be true," saying there was no reason for a consumer to doubt the simple advertised terms.
Carter Capner Law said the class action seeks to recover financial losses for group members, including establishment fees, monthly service charges and other related costs. The firm did not provide an estimate of the total value of potential claims.
Harvey Norman and Latitude Finance previously appealed the Federal Court decision; both appeals were dismissed in early September. Representatives for Harvey Norman and Latitude did not immediately respond to requests for comment from the parties handling the class action announcement.
The dispute adds to a string of legal challenges the retailer has faced in recent years. In 2024, Maurice Blackburn Lawyers lodged a separate class action in the Supreme Court of Victoria alleging that extended warranties sold by Harvey Norman were of negligible value. The new action is likely to revive scrutiny of the company's sales practices and its use of third‑party finance products to facilitate store promotions.