Product Intervention Powers
Submission to: ASIC
Related Projects
AFCA Approach to Appropriate Lending to Small Business
Submission to: Australian Financial Complaints Authority
This submission is based on the casework experiences of Small Business Debt Helpline financial counsellors. We welcome the development by AFCA of an approach document. Our submission argues that the approach document needs to explicitly consider the issue of customers in vulnerable circumstances, that there is a need for clear guidance about what constitutes “reasonable inquiries” in assessing a business purpose and emphasises the importance of assessing the type of financial firm, type of credit provided and characteristics of the borrower for all amounts of credit, including small amounts. In the experience of the Helpline, small amounts of credit can snowball and put personal assets, including the family home at risk.
This submission is based on the casework experiences of Small Business Debt Helpline financial counsellors. We welcome the development by AFCA of an approach document. Our submission argues that the approach document needs to explicitly consider the issue of customers in vulnerable circumstances, that there is a need for clear guidance about what constitutes “reasonable inquiries” in assessing a business purpose and emphasises the importance of assessing the type of financial firm, type of credit provided and characteristics of the borrower for all amounts of credit, including small amounts. In the experience of the Helpline, small amounts of credit can snowball and put personal assets, including the family home at risk.
Review of the Bankruptcy Threshold for Creditor’s Petitions
Submission to: Attorney-General’s Department
Joint submission from Financial Rights Legal Centre, Consumer Action Law Centre and FCA setting out why the bankruptcy threshold should be increased to $50,000. It is currently $5,000. This means that people can unfairly lose their homes over very small debts and that bankruptcy is inappropriately used as a debt collection tool.
Joint submission from Financial Rights Legal Centre, Consumer Action Law Centre and FCA setting out why the bankruptcy threshold should be increased to $50,000. It is currently $5,000. This means that people can unfairly lose their homes over very small debts and that bankruptcy is inappropriately used as a debt collection tool.