Target Market Determination (TMD)
Product Issuer/ Distributor: KLF Pty Ltd trading as Rent to Own Home Appliances ABN 58 105 210 008 ACL 391 902.
Financial Product/s to which this TMD applies to: Rent to Own Agreements (credit contract)
Effective Date for this TMD – 01/06/2023
- About this Document
A Target Market Determination (TMD) is a document that describes the customers that our credit products are targeting and the key attributes of the products. The TMD also describes how the credit products are distributed to our customers.
- Why do we have a TMD?
As a credit provider and the holder of an Australian Credit Licence we are required by law to produce this TMD and to publish it on our website. The TMD serves 2 main purposes. Firstly, it ensures that our focus in designing and distributing credit products is customer centric which means that we consider who is our customer and what are their needs and objectives and we designed the financial product to meet these needs. Secondly, it enables prospective customers to review the TMD, understand our products and the manner in which we distribute these products and make an informed decision on whether to acquire a credit product from us.
The TDM, however, does not provide all the necessary information for a customer to determine whether they want to acquire a credit product from us and is not a substitute to the relevant terms and conditions for the credit product. It is recommended that prospective customers review the relevant terms and conditions before deciding whether to acquire a credit product from us.
- Class of Consumers that comprise the Target Market for the product/s:
Our Rent to Own products are designed for customers who:
- Need or wants the use of new household appliances, furniture or electronics which are to be predominantly used for household purposes.
- Wants a flexible agreement that offers features like: ability to payout out early and receive a discount or return the product if their situation changes or they no longer need the use of the product.
- Wants peace of mind that during the contract term they can contact Rent to Own for service (see key attributes)
- Is comfortable with the fact that the products are in their possession at their risk.
- Are interested in immediate access to a wide range of new products
- May not have the financial capacity to purchase the items outright or would prefer not to but has the capacity to repay the rental or rent to own repayments for the term of the agreement.
- Is an Australian permanent resident and not in Australia on a temporary visa
- Is 18 year old or older
- Lives within 100km of one of our stores
- Has the capacity to understand the credit product they are entering into.
- Hold a bank account in Australia
- Willing to provide access to their bank account statement and any other financial documents required to accurately assess their financial situation.
- Hold an acceptable level of identification that can be used to verify their identity
- Has sufficient income to be able to afford their current living expenses and the cost associated with the credit product they are acquiring from us.
- Does not intend to sell or otherwise transfer ownership of the good during the term of the credit facility.
- Product description and Key Attributes
The credit products that this TMD applies to are rent to own agreements. This credit facility is regulated under the National Consumer Credit Protection Act 2009 (Cth).
A rent to own agreement is an agreement pursuant to which the customer owns the goods from the date of the agreement and are paying the total cost of the credit by instalments.
Customers applying for this credit product must meet an eligibility criteria and we, as a holder of an Australian Credit Licence, must perform a responsible lending assessment to ensure that the customer’s objectives and needs are met and that the customer can meet his or her obligations under the credit facility without hardship.
Under this credit product, if the customer is having any trouble with the goods, Rent to Own will provide troubleshooting over the phone and or onsite as necessary. Rent to Own will manage all warranty claims and organise repairs or replacement of their faulty product/s.
- Distribution Conditions:
- Who distributes our Products: 100% of our business functions are performed in-house
- How are our products distributed: Rent to Own distributes its credit products in 3 ways namely;
(i) (preferred methos) online;
(ii) in one of our stores; and
(iii) over the phone.
Applications are made predominately online via our website. Where a customer does not have the ability to apply via the website an application can be made in store or over the phone. Applications are processed by our staff. Application outcomes are decided by a responsible manager. Products are sourced and delivered by our delivery staff.
- Other Considerations:
Admin Staff: Are sufficiently trained to be able to assist customer enquiries and applications
Delivery Staff: Are trained in the setup and use of the products so that they can setup and test products are functioning correctly and can demonstrate usage to customers
Responsible Managers: Perform continual professional development via completing online learning and on the job training from the compliance officer.
- Review Triggers:
- Regular Review;
- Customer complaints;
- Customer feedback;
- Employee feedback;
- Increase in rates of delinquency;
- Change in regulatory environment;
- Ineffective distribution channels; or
- Changes to the financial products.
- First Review: 12 months from the date of issue or in the event of review triggers
- Subsequent Review: Every 12 months or in the event of review triggers
- Complaint Reporting: Complaints to be recorded in the complaints register and reported to senior management immediately.
- Significant Dealings: To be reported to senior management immediately