Review of the Australian Financial Complaints Authority

Joint consumer group submission (led by Consumer Action Law Centre) into proposed laws that will require some debt management firms (DMFs) to hold an Australian Credit Licence. The submission supports this proposal but sets out why are more robust licensing and conduct regime is needed to adequately prevent consumer harm. This would include a requirement that all DMFs act in the customer’s best interests, a ban on upfront fees, a ban on DMFs taking a legal charge over a client’s assets to secure their fees, and mandatory signposting to free services such as financial counselling as other options.

Submission to: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry