Comment on ASIC proposed ban on flex-commissions

Thank you for the opportunity to make additional comments on the proposed ASIC Credit (Flexible Credit Cost Arrangements) Instrument banning flex-commissions. Consumer Action supports this proposal. In our view, it will reduce the poor outcomes for people who take out loans at car yards.

Flex-commissions effectively reward car dealers for acting against the interests of their customers, and to do so without their customers’ knowledge. Flex-commission arrangements mean that loan interest rates may be based purely on what the customer can bear.

Read the full submission here [PDF]

170808_CALCSub_ASICFlexCommnsBan2_Final_ForWeb

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