Inquiry into the Resolution of Disputes with Financial Service Providers within the Justice System – Joint Submission
Submission to: Australian Senate
Related Projects
United Kingdom Consultation on the Buy Now, Pay Later industry
Submission to: HM Treasury, UK
Joint submission from the Consumer Action Law Centre and FCA to HM Treasury in the United Kingdom. The purpose is to share our experience of the Australian regulatory environment, where BNPL operates outside the credit laws that apply to other lending products. This is a similar situation to that in the UK. A key difference in Australia is that the industry here has developed a self-regulatory Code of Practice. The submission outlines the deficiencies with the Code and why it is not an substitute for adequate regulation, includes some observations about other aspects of the operation of BNPL in Australia and makes suggestions about the design of proportionate regulation. The submission is informed by the casework experiences of financial counsellors (called debt advisors in the UK) and consumer lawyers who are increasingly seeing clients who are experiencing various forms of harm when using the product.
Joint submission from the Consumer Action Law Centre and FCA to HM Treasury in the United Kingdom. The purpose is to share our experience of the Australian regulatory environment, where BNPL operates outside the credit laws that apply to other lending products. This is a similar situation to that in the UK. A key difference in Australia is that the industry here has developed a self-regulatory Code of Practice. The submission outlines the deficiencies with the Code and why it is not an substitute for adequate regulation, includes some observations about other aspects of the operation of BNPL in Australia and makes suggestions about the design of proportionate regulation. The submission is informed by the casework experiences of financial counsellors (called debt advisors in the UK) and consumer lawyers who are increasingly seeing clients who are experiencing various forms of harm when using the product.
The Bankruptcy System and the Impacts of Coronavirus – Discussion Paper
Submission to: Attorney-General’s Department
Joint consumer group submission (led by Financial Rights Legal Centre) response to a discussion paper from the Federal Attorney-General’s Department. The submission recommends that the default period for bankruptcy should reduce to 1 year (and if so, changes should also be made to the credit reporting system), that charging fees for bankruptcy advice should be banned, the Bankruptcy Act should be amended so that people who later experience further financial hardship can apply to reduce their contributions and that all small business lenders should be members of AFCA. The submission also makes a raft of recommendations in relation to debt agreements, including that the income, debt and asset thresholds should not increase, that the term limit remain the same and that bankrupts be allowed to keep compensation awarded by AFCA. Other recommendations includes that payments from TPD insurance should be protected in bankruptcy, bankrupts should be able to retain accumulated savings, once they have met their income contributions and the fees charged by bankruptcy trustees should be subject to a review as well as greater auditing and enforcement from AFSA. Financial counselling should be available in all Federal Circuit Courts (based on the approach in the Melbourne registry).
Joint consumer group submission (led by Financial Rights Legal Centre) response to a discussion paper from the Federal Attorney-General’s Department. The submission recommends that the default period for bankruptcy should reduce to 1 year (and if so, changes should also be made to the credit reporting system), that charging fees for bankruptcy advice should be banned, the Bankruptcy Act should be amended so that people who later experience further financial hardship can apply to reduce their contributions and that all small business lenders should be members of AFCA. The submission also makes a raft of recommendations in relation to debt agreements, including that the income, debt and asset thresholds should not increase, that the term limit remain the same and that bankrupts be allowed to keep compensation awarded by AFCA. Other recommendations includes that payments from TPD insurance should be protected in bankruptcy, bankrupts should be able to retain accumulated savings, once they have met their income contributions and the fees charged by bankruptcy trustees should be subject to a review as well as greater auditing and enforcement from AFSA. Financial counselling should be available in all Federal Circuit Courts (based on the approach in the Melbourne registry).