By Petrina Berry
BRISBANE, Nov 17 AAP - Radio Rentals owner Thorn Group will repay $2.8 million to customers overcharged due to a computer glitch.
The company says Centrelink and direct debiting customers continued to be charged for the leasing of goods after they were fully paid off because of a computer malfunction.
The refund will wipe out the half-year profits of Thorn's core consumer lending business.
Managing director James Marshall told AAP the majority of amounts owned to each customer was less than $50, with 25 per cent less than $5.
"We have found credit balances, some of them were $2 or $3 that back date to 15 years ago, and we have adopted a gold standard approach to appliance," Mr Marshall said.
"We are going right back to the start to make sure all of those monies are refunded."
The group's overall results were rescued by a strong rise in earnings from its commercial leasing business and its recently acquired cash flow solutions business for small enterprises.
Thorn's net profit rose 1.5 per cent to $15.4 million in the six months to September 30, up from $15.2 million in the same period a year ago.
Group revenue in the first half rose 7.4 per cent to $161 million, from $149.9 million in the same period a year ago.
Mr Marshall said ongoing sluggish consumer sentiment was encouraging people to rent first rather than buy.
"The big banks recent move on interest rates despite the RBA leaving rates on hold brings a little bit of uncertainty to consumers," he said.
"What we are seeing is consumers are paying down household debt more rapidly and are trying to build a savings buffer.
"Often a lot of working people... are choosing a rent, try, buy style program rather than dipping into their savings buffer to spend $1,500 on a new fridge."
Thorn's share price fell half a cent to $1.995.
RADIO RENTALS SHORT-CHANGE CUSTOMERS $2.8m:
* Half-year net profit of $15.4m, up 1.5pct in fiscal 2014
* Revenue of $161m, up 7.4pct from $149m
* Dividend of 5.50 cents, up from 4.50 cents
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