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This is a joint submission prepared by the Consumer Action Law Centre (Consumer Action) and made on behalf of:

• Australian Communications Consumer Action Network (ACCAN)
• CHOICE
• Consumer Action
• Consumer Credit Legal Service WA (CCLSWA)
• Financial Counselling Australia (FCA)
• Financial Counselling Victoria (FCVic)
• Financial Counselling Western Australia (FCWA)
• Financial Rights Legal Centre (FRLC)
• Mob Strong Debt Help
• Westjustice

We welcome the opportunity to comment on the Australian Financial Complaints Authority’s (AFCA) proposed Rules and Operational Guidelines for the Scams Prevention Framework (SPF).

The SPF presents a significant opportunity to deliver fast, fair and straightforward redress for consumers who have experienced scam-related harm.

We broadly support the proposed framework including AFCA’s approach to multi-party complaints, its information-gathering powers, the retention of its fairness jurisdiction, and the proposed systemic issues framework, and recognise the significant work undertaken by AFCA to prepare for the SPF.

However, greater ambition is needed in this new jurisdiction to give full effect to the SPF. Scam complaints involve unique challenges, including significant information asymmetry, evolving scam typologies and substantial power imbalances between consumers and regulated entities.

In our view, several aspects of the proposal remain too cautious and do not yet go far enough to address these unique realities. Given all stakeholders are entering a new and untested framework, AFCA should equip itself with the strongest possible set of powers and tools from the
outset. It will be easier to recalibrate the framework through future reviews than to undo settings that limit AFCA’s ability to effectively resolve SPF complaints.

Finally, a central principle of the design and implementation of the scams jurisdiction at AFCA must be putting victims at the heart of the dispute resolution processes. The processes should seek to minimise the impact on scam victims, who are the victims of crime and likely experiencing hardship as a result.

Read the full submission and recommendations (PDF).