Consumer Action Law Centre has published part 1 of its initial submission to the Royal Commission into Misconduct in the Banking, Superannuation and Finance Sector today. The submission draws on the experience of the Centre assisting Victorians through legal advice and representation, and financial counselling.
The submission identifies various kinds of misconduct by financial services, as well as the nature, prevalence and effect of that misconduct. It also identifies various other kinds of conduct and practices that have fallen below community expectations. These include:
- Irresponsible lending, particularly in relation to credit cards, car finance and home loans;
- The impact of over-indebtedness
- Unlawful sales practices in relation to insurance, property spruiking and timeshare
- The design of credit cards
- The marketing of credit
- Low value insurance products
- Excessive bank fees
- Poor customer service and complaints handling
- Debt management firms
Consumer Action will provide part 2 of its submission in the coming weeks. This will consider some of the drivers of misconduct in the finance sector and the effectiveness of redress mechanisms.