Fairness must drive consumer policy in 2020
by Gerard Brody, CEO of Consumer Action Law Centre Fairness will be the big issue in consumer policy during 2020. It is being talked about like never before. This follows on from Kenneth...
A dynamic year for consumer advocacy
There’s no denying that 2019 was a dynamic one for Consumer Action, bringing a wave of change for consumer rights in Australia. You can find out more about what we’ve been up to this past year in our...
ASIC’s overhaul of responsible lending guidance should focus lenders on the welfare of borrowers
Consumer Action Law Centre (Consumer Action) and Financial Rights Legal Centre (Financial Rights) say ASIC’s overhaul of its responsible lending guidance is a welcome announcement in the wake of the d...
Centre Alliance and Labor unite to force action on harmful payday loans and consumer leases
Consumer Action Law Centre (Consumer Action) welcomes the introduction today of legislation in the Senate by Labor and Centre Alliance, in the wake of Government inaction. The Bill is an important mea...
Banks must offer better value bank accounts to struggling Australians
The updated Banking Code received authorisation yesterday from the Australian Competition and Consumer Commission (ACCC) and the ABA are now seeking final approval from the Australian Securities and I...
Data reveals billion-dollar payday lending industry driving Australians into debt
Over 20 consumer advocacy bodies from around the country have released new data revealing that predatory payday lenders are profiting from vulnerable Australians and trapping them in debt, as they cal...
The Debt Trap: How payday lending is costing Australians
The Debt Trap: How payday lending is costing Australians projected that the gross amount of payday loans undertaken in Australia will reach a staggering 1.7 billion by the end of 2019. It also found t...
Access to basic bank accounts essential for vulnerable banking customers
In our joint submission with Financial Rights Legal Centre (Financial Rights) and Financial Counselling Australia (FCA), we offered strong support for the conditions proposed by the ACCC in its Draft...
Effective banking codes require enforcement measures with teeth
In our joint submission with Financial Rights Legal Centre to Report Three of the Customer Owned Banking Association’s (COBA) independent review of the Customer Owned Banking Code of Practice (COBA Co...
Good consumer outcomes should not be sacrificed for bankers’ bonuses
The financial services industry plays an essential role in the lives of Australians, from providing for day-to-day transactions to providing for a comfortable retirement. Markets were opened becaus...
Payday lenders: trusted friends or debt traps?
Need a loan? Research reveals social media users should be wary of payday lenders using digital platforms to peddle their wares to the vulnerable. If you have ever needed money in a hurry it may ha...
Protecting Australian families from dodgy vendor terms and rent-to-buy arrangements
Over the years, our team has assisted a number of people who have been adversely affected by failed vendor finance and rent-to-buy deals, which are promoted as an opportunity to achieve home ownership...
Financial product design and distribution obligations must be consumer centred and limit loopholes
The Design and Distribution Obligations (DADOS) require financial service providers to provide products that meet customer needs rather than focussing on securing the sale. In our joint submission on...
ASIC Enforcement Review
In our joint response to exposure draft legislation implementing certain aspects of the ASIC Enforcement Review Taskforce (ERT) Final Report, Consumer Action and Financial Rights Legal Centre (Financi...
Customer-owned banking code must adequately address financial vulnerability
In our joint submission with Financial Rights Legal Centre to the Report Two of the Customer Owned Banking Association’s (COBA) independent review of the Customer Owned Banking Code of Practice (COBA...
Making it easier for vulnerable customers to access fee-free banking
Access to fee-free ‘basic bank accounts’ are an important support for vulnerable banking customers. In light of the harm banking fees can cause for low-income and vulnerable consumers, Commissioner Ha...
The mortgage broking industry is long overdue for reform
The mortgage broking industry is long overdue for reform. Landmark inquiries from the Banking Royal Commission and the Productivity Commission, as well as a number of ASIC investigations, have all...
Cashless Debt Card undermines the role of the market in serving consumer and community interests
Much of the Federal Government’s effort to address cost of living pressures involves making it easy to switch and exercise choice, for example, through the new Consumer Data Right. However, the Cashle...
Giving energy users access to fair finance for new energy tech
On 9 September 2019, Consumer Action attended a pre-decision conference on AA1000439 New Energy Tech Consumer Code (The Code) Application. We have provided a further submission following the discussio...
“I don’t want other women falling into the same trap.” Victorian woman joins Canberra delegation to urge Government to stop predatory payday lenders
A Victorian woman who has suffered at the hands of payday lenders has an important message for the Government about the dangers of payday loans as she joins the Stop the Debt Trap Alliance, a coaliti...
Rent4Keeps sued over unaffordable consumer leases
A Victorian woman living with a disability has brought proceedings in the Federal Circuit Court regarding five consumer lease contracts from Darranda Pty Ltd, trading as Rent4Keeps, and Mobberley Ente...
Time is up for predatory credit agent, Cigno as ASIC confirms ban of lending model
Cigno has been weighed, measured and found wanting as the Australian Securities & Investments Commission (ASIC) takes decisive action to ban a predatory lending business model using its newfound p...
Keeping comprehensive credit reporting fair for those who have previously experienced hardship
Leading consumer advocacy bodies are concerned that customers who experience financial difficulty repaying loans will be unfairly penalised by credit reporting reforms proposed by the National Consume...
The norm of fairness must be recognised
Our existing consumer protection framework has failed to prevent unfairness from becoming embedded in business practices. From unclear marketing, subscriptions that make cancellation difficult, to...
Urgent need for payday loan reform acknowledged by Consumer Affairs Ministers
The need for urgent law reform to protect consumers from unfair and predatory payday loans has been reinforced at a meeting of Australian and New Zealand ministers in Queenstown, New Zealand. Minis...
Response to ASIC’s update to internal dispute resolution requirements for financial firms (RG165)
It is critical that the process to make and resolve complaints with a bank, insurer, or super fund is timely, fair, and accessible, including for people experiencing vulnerability and disadvantage. O...
Consumer advocates unite as Government inaction on payday loan reform hits 1,000 days
As the counter ticks over to 1,000 days since the Coalition Government accepted the recommendations from the Small Amount Credit Contract (SACC) review, consumer advocacy organisations across the coun...
Support for an independent review of the Customer Owned Banking Code of Practice
In our joint submission with Financial Rights Legal Centre, Consumer Credit Legal Service (WA), Financial Counselling Australia and the Financial & Consumer Rights Council, we support Cameron Ralp...
New Energy Tech Consumer Code must protect Australians from exploitative buy now pay later arrangements
Consumer Action regularly assists vulnerable and disadvantaged consumers in Victoria with legal and financial issues that arise due to new energy technology such as solar. . The New Energy Tech Consu...
Protecting guarantors from financial abuse
In our feedback to the Banking Code Compliance Committee (BCCC) inquiry into banks’ compliance when accepting and enforcing guarantees, Consumer Action discusses our concerns with guarantee provision...
Opening statement: Public hearing on ASIC’s responsible lending guidance
The following is the opening statement from Consumer Action CEO, Gerard Brody at the public hearing on ASIC’s responsible lending guidance held in Melbourne on Monday, 19 August 2019. I’m G...
Who is making Australians bankrupt?
One of Australia’s largest debt collectors – Lion Finance (a subsidiary of ASX-listed Collection House Ltd) – turns to bankruptcy procedures to collect consumer debts far more often than its rivals, a...
Time to implement Hayne recommended law reform following court decision
The Financial Rights Legal Centre (Financial Rights) and Consumer Action Law Centre (Consumer Action) have called for the Government to amend responsible lending laws to ensure that lenders make reaso...
ASIC Consultation Paper 313: Product intervention power
We welcome the introduction of the product intervention power (PIP) and look forward to ASIC using the power to target businesses that cause consumer detriment by engaging in predatory conduct or fail...
NZ Select Committee on Credit Contracts Legislation Amendment Bill: Opening Remarks
The below statement was delivered on 31 July 2019 by Consumer Action Law Centre CEO, Gerard Brody to the New Zealand Select Committee on Credit Contracts Legislation Amendment Bill. High co...
ASIC Consultation Paper 316: Using the product intervention power: Short term credit
Businesses such as Cigno Pty Ltd, which facilitate access to predatory and unregulated payday loans by exploiting loopholes in the law, are on notice as the Australian Securities and Investment Commis...
Victoria’s Mental Health Royal Commission must examine links between links between poverty, debt and mental health
Consumer Action’s financial counsellors and lawyers speak regularly to individuals experiencing mental health issues. These individuals are commonly trying to deal with a range of consumer problems in...
Regulator slams ‘junk insurance’ sold by banks as Aussies demand over $2 million in refunds
The Australian Securities and Investments Commission (ASIC) report released today confirms that consumer credit insurance, commonly tacked on when taking out a loan or credit card, is junk. This news...
Consumer Action lodges complaint to Commonwealth Ombudsman about the Department of Human Services’ poor administration of Centrepay
Consumer Action Law Centre (Consumer Action) has made a formal complaint to the Commonwealth Ombudsman about the Department of Human Services (DHS). This complaint comes after the department failed o...
Consumer Action supports ASIC use of new powers to tackle predatory credit agents such as Cigno
Businesses such as Cigno Pty Ltd, which facilitate access to predatory and unregulated payday loans by exploiting loopholes in the law, are on notice as the Australian Securities and Investment Commis...
Comment on the ACCC’s authorisation of amendments to the 2019 Banking Code of Practice
Consumer Action Law Centre (Consumer Action), the Financial Rights Legal Centre (Financial Rights) and Financial Counselling Australia (FCA) have provided comment on the Australian Banking Association...
Banks should recognise that anyone can become vulnerable: Submission to ABA Guideline on Customer Vulnerability
There are any number of reasons why a person would be unable to unwilling to speak up when they are struggling with their financial situation. Who among us hasn’t faced a financial issue at one poi...
Newly passed bill officially bans rent-to-buy and vendor finance schemes from the Victorian housing market
The historic ban on certain residential vendor terms and rent-to-buy agreements, included in the Sale of Land Amendment Bill 2019 passed by Parliament this week means vulnerable home purchasers will b...
ASIC must overhaul responsible lending guidance to protect Australians
Consumer Action Law Centre (Consumer Action) has called on the Australian Securities and Investment Commission (ASIC) to urgently overhaul responsible lending guidance to better protect Australians fr...
Proposed AFCA arrangements for comparative reporting of complaint data
Comparative reporting of data related to complaints against financial service providers will empower consumers to make informed decisions about where to take their business. Consumer Action Law Centr...
The banking and finance sector needs to play by the rules and put their customers first
In the wake of the widespread misconduct illustrated at the Banking Royal Commission, all players within the banking and finance sector need to play by the rules and put their customers first regardle...
Enhanced regulatory framework would make industry codes enforceable if compliance required
Industry codes – often referred to as codes of conduct – can be useful when they genuinely improve standards in the relevant sector, provide meaningful rights for consumers and are complied with by in...
Submission on the Australian Financial Complaints Authority (AFCA) Rules Changes
Consumer Action Law Centre (Consumer Action) welcomes the opportunity to comment on the proposed changes to expand AFCA’s jurisdiction to deal with eligible complaints about conduct dating back to 1 J...
Ban on vendor term and rent-to-buy transactions to make buying a home fairer for all Victorians
Consumer Action Law Centre (Consumer Action) supports a ban on vendor term and rent-to-buy agreements in the housing market proposed by the Sale of Land Amendment Bill 2019, which is to be introduced...
The justice system could better respond to the needs of people affected by misconduct in the finance sector
Consumer Action Law Centre (Consumer Action) has recommended that financial service providers be required to improve their approach to dispute resolution in its comments to the Senate Legal and Consti...