Product Intervention Orders: Short Term Credit Contracts and Continuing Credit Contracts
Submission to: ASIC re Consultation Paper 335
Related Projects
Fair Trading (Small Amount Credit Contracts and Consumer Leases) Amendment Bill 2020 (SA)
Submission to: Commissioner, Consumer and Business Services, SA
This is the joint submission from the Stop The Debt Trap Alliance a coalition of consumer advocacy organisations advocating for adequate regulation of payday loans and consumer leases. This submission supports the legislation introduced to the SA Parliament by the Attorney-General, the Hon Vicki Chapman that will introduce cost caps on both products. The legislation is based on that originally planned by the Federal Government in 2017, but not introduced. Instead the Federal Government is proposing a watered down version of reforms (as announced on 25th September 2020). We urge the SA Parliament to pass this bill.
This is the joint submission from the Stop The Debt Trap Alliance a coalition of consumer advocacy organisations advocating for adequate regulation of payday loans and consumer leases. This submission supports the legislation introduced to the SA Parliament by the Attorney-General, the Hon Vicki Chapman that will introduce cost caps on both products. The legislation is based on that originally planned by the Federal Government in 2017, but not introduced. Instead the Federal Government is proposing a watered down version of reforms (as announced on 25th September 2020). We urge the SA Parliament to pass this bill.
Making Insurance Claims handling a Financial Service
The Financial Services Royal Commission recommended improvements in consumer protection for insurance claims handling. We support that recommendation and the draft legislation to implement it.
The proposed changes will ensure that insurance claims are covered under the definition of “Financial Service” in the Corporations Act and improve disclosure when settling an insurance claim. This will be beneficial for people claiming on their insurance policies.
Additional protections are needed in the proposed laws however, to protect people from exploitation, including extending the legislation to include paid claims handling services and life insurance. There should also be additional protections for people settling an insurance claim following a natural disaster.