Nearly $50K refunded to renters from unlawful background checks

Renters in NSW just got a big win—almost $50,000 has been refunded to people who were wrongly charged for background checks when applying for rentals.

Here’s what went down: Some online rental platforms used to encourage applicants to pay between $25 to $40 for background checks, with the idea that it might boost their chances of securing a place. But last October, NSW changed the rental laws, making it illegal for landlords or platforms to charge renters for these checks.

Despite that, a recent investigation by the rental task force found that one rental application platform was still selling background checks—charging 2,372 renters $19.95 each for a search of public databases and the National Tenancy Database. That added up to $47,321 in illegal charges.

The good news? The platform has since refunded everyone affected, disabled the background check feature, and promised to keep a closer eye on compliance. They blamed the whole thing on a “system error” that kept the payment option live even after the law changed.

NSW Fair Trading is urging renters who have been charged for a background check to file a complaint online—so if this has happened to you, definitely check your records.

With 2.3 million renters in NSW, the rental task force has been cracking down on dodgy practices, including investigating landlords and agents who misappropriate rental bonds and trust funds.

And speaking of dodgy dealings—on March 7, real estate agent Vanessa Nguyen was sentenced to 15 months of intensive correction, 180 hours of community service, and ordered to pay back $80,866.20 after being caught siphoning over $100,000 from rental bonds and trust accounts at Ray White Canley Heights. She made 25 false rental bond claims and even transferred $50,505 from the agency’s trust account straight into her personal bank account.

Fair Trading Minister Anoulack Chanthivong made it clear: “If you are doing the wrong thing, the rental task force will catch you, and serious legal consequences will follow.”

So, moral of the story—renters, know your rights! And if you think you’ve been unfairly charged, now’s the time to speak up.