Fri. Sep 27th, 2024
Occasional Digest - a story for you

A massive class action is set to be launched by disgruntled customers against leading WA builder BGC Housing Group after they experienced long delays and steep price rises in trying to get their houses completed.

Around 800 people have already signed up for the class action, and lawyers expect 5,000 West Australians could ultimately join the lawsuit, which they say could recoup up to $200 million.

Lawyer Spencer Lieberfreund, who is supporting the claimants,  said the legal action would be funded by Omni Bridging, which meant home owners would not have to pay for it themselves.

He told ABC Radio Perth the building company “oversold and over promised, under-delivered” between July 1, 2019 and June 30, 2022, leaving home owners waiting years for their houses to be completed.

Some are still waiting.

Mr Leiberfreund said in July 2020 alone BGC signed contracts with 1,000 people — “more homes than any other builder in Australia” and half the number of contracts it signed in all of 2019.

Homelessness, job losses, despair

Domenica Vecchio signed her contract with BGC in June 2020 and did not get the keys for her new house until late March this year, nearly three years later, having been forced to pay $10,000 extra for the build.

Ms Vecchio, who is helping organise the class action, spoke of the toll it had taken on her family, including “anxiety, panic and uncertainty”, and said others had been worse off.

“For a lot of other people in the class action it was homelessness, relationship break-ups, suicidal ideations, job losses, people having to travel 50 kilometres for work because the only rental they could get was 50 kilometres from work.”

More to come.

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