00:00The exorbitant fees and oppressive clauses in contracts, so when people go in, they're
00:10affordable, but when they leave, that's when they get stung with exit fees that can be
00:14up to 60% of the sale of the property, and refurbishment costs, so people such as, we
00:21spoke to many families, and you might want to hear from some of them now.
00:27I can't believe my mother's lost all her life savings.
00:30I felt sick, I had to read through it more than once, I got my husband to read through
00:35it, I emailed it to my brother and said, can this possibly be right?
00:39You get people who go in, pay $400,000 and can end up with $81,000, which is not enough
00:47to go into aged care, so they have to go on a waiting list.
00:50It's state-based regulation, so it slips through the cracks.
00:53There is a voluntary code of conduct, which only 40% of the industry have signed up to,
01:00and there are no penalties if they breach.
01:03What's been the response from the sector itself?
01:06The sector says the contracts are clearly laid out, they advise that residents or prospective
01:13residents should go and see a lawyer or a financial planner, but some of the contracts
01:18we've seen, they're algebraic formulas, so I think it would take a very clever lawyer
01:24to understand some of these contracts.
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