Much-needed Centrepay reforms the result of a decades-long campaign: Tonkin
Consumer Action Law Centre CEO Stephanie Tonkin said she was absolutely delighted that Minister Bill Shorten has announced consumer protections and reforms to Centrepay that restore it to its original purpose; that it should only be used by consumers to make regular voluntary payments for essential bills and expenses. (link to media release)
“We have been fighting for this outcome with First Nations leaders our colleagues in the broader consumer advocacy sector for more than ten years, and I congratulate everyone who has made such an important contribution,” Ms Tonkin said.
The right of businesses to be on Centrepay is a privilege and has been systemically abused by many consumer lease businesses for decades.
20 years ago, one of Victoria’s first financial counsellors, Jan Pentland, voiced her concerns with Centrepay with various parts of government and with regulators, but her advocacy fell on deaf ears.
. Financial Counselling Australia (FCA) published a report in 2013 entitled “Centrepay – a good idea that lost its way“.
In 2015, Consumer Action with Financial Rights Legal Consumer Action Law Centre, Financial Rights Legal Centre, Financial Counselling Australia and Indigenous Consumer Assistance Network called on the then Government “…to protect the integrity of Centrelink’s budgeting tool for essentials, Centrepay, by excluding rent-to-buy products.”
“Sadly, our call for reform in 2015 was ignored, and in the intervening years the financial harms inflicted -particularly on First Nations people using Centrepay – have been devastating,” she said.
“With these reforms in place, let’s hope the unfair and dodgy consumer leases promoted by predatory businesses on Centrepay are a thing of the past.”
ENDS
Media Contact: Mark Pearce mark@consumeraction.org.au 0413 299 567
