FCA submissions to government, regulators and others.
November 2021
Submission to: ASIC
Joint consumer group submission (led by the Consumers’ Federation of Australia) on proposed changes to the ePayments Code. Our submission expresses disappointment that ASIC is planning to reduce consumer protection in relation to scams both in relation to mistaken payments and unauthorised transactions. These proposals run counter to ASIC’s 2021-25 strategic plan which include a commitment to reduce the risk of harm to consumers from scams.
Joint consumer group submission (led by the Consumers’ Federation of Australia) on proposed changes to the ePayments Code. Our submission expresses disappointment that ASIC is planning to reduce consumer protection in relation to scams both in relation to mistaken payments and unauthorised transactions. These proposals run counter to ASIC’s 2021-25 strategic plan which include a commitment to reduce the risk of harm to consumers from scams.
September 2021
Submission to: Australian Media and Communication Authority
The ACMA has released a draft Statement of Expectations for the telecommunications industry, inviting comment on the five priorities it contains. The aim of the Statement is to improve outcomes for consumers, particularly people who are vulnerable. Our submission notes that the very fact the Statement is necessary is symptomatic of broader problems with the telecommunications industry which in turn reflect the light touch regulatory framework. The submission argues that the Statement should be an enforceable regulatory instrument. Telecommunication companies need to address the barriers that mean people are not being treated fairly, including continuing problems with mis-selling and inadequate hardship processes.
The ACMA has released a draft Statement of Expectations for the telecommunications industry, inviting comment on the five priorities it contains. The aim of the Statement is to improve outcomes for consumers, particularly people who are vulnerable. Our submission notes that the very fact the Statement is necessary is symptomatic of broader problems with the telecommunications industry which in turn reflect the light touch regulatory framework. The submission argues that the Statement should be an enforceable regulatory instrument. Telecommunication companies need to address the barriers that mean people are not being treated fairly, including continuing problems with mis-selling and inadequate hardship processes.
August 2021
Submission to: Treasury
Joint consumer group submission (led by CHOICE) on the Financial Accountability Regime Bill 2021. As drafted, the law will not work to hold finance executives to account. The Bill needs to be strengthened to: expand the scope to senior managers, reinstate civil penalties for breaches (which was the Government’s original intention), bolster the deferred remuneration obligations so that all variable rem could be clawed back and impose an obligation on executives and senior managers to treat customers fairly.
Joint consumer group submission (led by CHOICE) on the Financial Accountability Regime Bill 2021. As drafted, the law will not work to hold finance executives to account. The Bill needs to be strengthened to: expand the scope to senior managers, reinstate civil penalties for breaches (which was the Government’s original intention), bolster the deferred remuneration obligations so that all variable rem could be clawed back and impose an obligation on executives and senior managers to treat customers fairly.
August 2021
Submission to: Treasury
Joint consumer group submission (led by CHOICE). The submission argues that an effective Compensation Scheme of Last Resort should have broad coverage so that it includes any financial service or product that comes within the jurisdiction of the Australian Financial Complaints Authority. It is particularly important that the CSLR cover funeral expense policies managed investment schemes and debt management firms. The compensation cap for the CSLR should be the same as that for AFCA.
Joint consumer group submission (led by CHOICE). The submission argues that an effective Compensation Scheme of Last Resort should have broad coverage so that it includes any financial service or product that comes within the jurisdiction of the Australian Financial Complaints Authority. It is particularly important that the CSLR cover funeral expense policies managed investment schemes and debt management firms. The compensation cap for the CSLR should be the same as that for AFCA.
July 2021
Joint consumer group submission (led by Consumer Action Law Centre) commenting on the fitness of Telstra to be granted a licence to retail electricity and gas. The submission does not oppose the grant of the licence but notes that the culture in the telecommunications industry is not conducive to good customer outcomes and that this could carry over into the utility space. This is a result of inadequate telco regulation that has resulted in ongoing systemic issues, including mis-selling. Telstra needs to make clear commitments that will not see these poor practices in this new market and that will see people who are vulnerable or in hardship, treated fairly.
June 2021
Submission to: Treasury
Joint submission, led by Women’s Legal Service Victoria, supporting the passage of legislation that will allow information about superannuation assets to be provided directly to the Family Court by the ATO during property settlements. This will be of significant benefit to women leaving situations of financial abuse and domestic violence, where perpetrators actively seek to hide assets.
Joint submission, led by Women’s Legal Service Victoria, supporting the passage of legislation that will allow information about superannuation assets to be provided directly to the Family Court by the ATO during property settlements. This will be of significant benefit to women leaving situations of financial abuse and domestic violence, where perpetrators actively seek to hide assets.
June 2021
Submission to: Treasury
FCA welcomes the opportunity to respond to this review of the Code. FCA supports the continuation of compulsory unit pricing, however, we believe the Review and Exposure Draft should seize this opportunity to address inherent flaws in the existing Code as this will benefit both consumers and the wider economy.
FCA welcomes the opportunity to respond to this review of the Code. FCA supports the continuation of compulsory unit pricing, however, we believe the Review and Exposure Draft should seize this opportunity to address inherent flaws in the existing Code as this will benefit both consumers and the wider economy.
May 2021
Submission to: Parliamentary Joint Committee on Human Rights
We echo the concerns of our colleagues across the community sector about the punitive aspects of ParentsNext. The program can exacerbate the financial issues facing single parents. Between July 2018 and February 2021, over 52,000 parents had their payments suspended, for an average of 5 days. Just over 1,000 parents had their payments cancelled. Many of these people would have faced a financial crisis as a result. This increases demand for emergency relief services, including food. Some people will have gone into debt to cover the financial shortfall, including high cost payday loans. The problem is that ParentsNext is a one size fits all program. Instead what is needed is targeted, strength-based support.
We echo the concerns of our colleagues across the community sector about the punitive aspects of ParentsNext. The program can exacerbate the financial issues facing single parents. Between July 2018 and February 2021, over 52,000 parents had their payments suspended, for an average of 5 days. Just over 1,000 parents had their payments cancelled. Many of these people would have faced a financial crisis as a result. This increases demand for emergency relief services, including food. Some people will have gone into debt to cover the financial shortfall, including high cost payday loans. The problem is that ParentsNext is a one size fits all program. Instead what is needed is targeted, strength-based support.
April 2021
Submission to: Senate Environment and Communications Legislation Committee
While gambling is a legitimate form of entertainment for many Australians, gambling should not be funded by credit. We therefore support a prohibition on the use of credit cards, including via e-wallets, for digital gambling.
While gambling is a legitimate form of entertainment for many Australians, gambling should not be funded by credit. We therefore support a prohibition on the use of credit cards, including via e-wallets, for digital gambling.
April 2021
Submission to: Treasury
Joint consumer group submission (led by Consumer Action) on the review of the operation of AFCA since its establishment. Consumer groups strongly support AFCA as providing access to justice for people in dispute with financial services providers. AFCA is meeting its statutory objectives to be fair, efficient, timely and independent.
Joint consumer group submission (led by Consumer Action) on the review of the operation of AFCA since its establishment. Consumer groups strongly support AFCA as providing access to justice for people in dispute with financial services providers. AFCA is meeting its statutory objectives to be fair, efficient, timely and independent.
March 2021
Submission to: Senate Standing Committee on Community Affairs
This is the financial counselling sector submission in response to the proposed increase in the rate of JobSeeker. The Government’s increase to income support payments in March 2020 lifted hundreds of thousands of Australians out of poverty. One result was a sharp decline in people seeking the support of financial counsellors. This Bill will reverse much of the progress that Australia has made to alleviate poverty, returning thousands of Australians to instead living below the poverty line. These people will struggle to stay afloat in an economy that doesn’t have enough jobs for the number of people out of work. We urge the Parliament to permanently increase income support payments, including JobSeeker and Youth Allowance. We stand with the Australian Council of Social Service in calling for a permanent increase to lift payments to at least $65 per day.
This is the financial counselling sector submission in response to the proposed increase in the rate of JobSeeker. The Government’s increase to income support payments in March 2020 lifted hundreds of thousands of Australians out of poverty. One result was a sharp decline in people seeking the support of financial counsellors. This Bill will reverse much of the progress that Australia has made to alleviate poverty, returning thousands of Australians to instead living below the poverty line. These people will struggle to stay afloat in an economy that doesn’t have enough jobs for the number of people out of work. We urge the Parliament to permanently increase income support payments, including JobSeeker and Youth Allowance. We stand with the Australian Council of Social Service in calling for a permanent increase to lift payments to at least $65 per day.
February 2021
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.
February 2021
Submission to: ASIC
Submission from the Consumers Federation of Australia (endorsed by FCA and a number of other consumer organisations) in relation to the ePayments Code. The submission raises concerns about screen scraping, that the code does not address scams and inadequate checks from ADIs to reduce mistaken payments. It is positive that the code will allow for consumer complaints to the Australian Financial Complaints Authority.
Submission from the Consumers Federation of Australia (endorsed by FCA and a number of other consumer organisations) in relation to the ePayments Code. The submission raises concerns about screen scraping, that the code does not address scams and inadequate checks from ADIs to reduce mistaken payments. It is positive that the code will allow for consumer complaints to the Australian Financial Complaints Authority.
January 2021
Submission to: Attorney-General’s Department
Joint consumer group submission (led by Financial Rights Legal Centre) in response to proposed changes to the bankruptcy regulations. The submission argues that the proposed modernisation of the list of household property available for the payment of debts does not in fact represent modern lifestyles. Trustees in bankruptcy should not be taking household items from debtors and their families unless those items are uniquely valuable, such as antiques. Alternatively, if the Government does not accept this, the proposed list needs to expand to home entertainment equipment, sufficient computing devices for all members of the household and one mobile phone for each household member. Thresholds for tools of trade and motor vehicles should be set at reasonable values. Alternatively, they should be increased to $5,000 for tools of trade and $15,000 for motor vehicles (both should be indexed). The submission also makes recommendations about the duration of listings on the NPII and the regulation of informal debt agreements.
Joint consumer group submission (led by Financial Rights Legal Centre) in response to proposed changes to the bankruptcy regulations. The submission argues that the proposed modernisation of the list of household property available for the payment of debts does not in fact represent modern lifestyles. Trustees in bankruptcy should not be taking household items from debtors and their families unless those items are uniquely valuable, such as antiques. Alternatively, if the Government does not accept this, the proposed list needs to expand to home entertainment equipment, sufficient computing devices for all members of the household and one mobile phone for each household member. Thresholds for tools of trade and motor vehicles should be set at reasonable values. Alternatively, they should be increased to $5,000 for tools of trade and $15,000 for motor vehicles (both should be indexed). The submission also makes recommendations about the duration of listings on the NPII and the regulation of informal debt agreements.
November 2020
Submission to: Attorney-General’s Department
Joint consumer group submission (led by Financial Rights Legal Centre) into the Privacy Act. The submission’s recommendations include a right to privacy, overhaul of notification and consent processes, higher privacy standards, a right to erasure, a statutory tort for breaches of privacy and specific protections for children.
Joint consumer group submission (led by Financial Rights Legal Centre) into the Privacy Act. The submission’s recommendations include a right to privacy, overhaul of notification and consent processes, higher privacy standards, a right to erasure, a statutory tort for breaches of privacy and specific protections for children.
November 2020
Submission to: Treasury
Financial counsellors strongly oppose the Government’s proposals to wind back Australia’s responsible lending laws. The draft legislation is fundamentally flawed and not capable of adequate amendment to address our concerns.
Financial counsellors strongly oppose the Government’s proposals to wind back Australia’s responsible lending laws. The draft legislation is fundamentally flawed and not capable of adequate amendment to address our concerns.
November 2020
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.
October 2020
Submission to: Telecommunications Industry Ombudsman
This is the joint consumer group submission about the TIO’s terms of reference, led by WEstJustice. This supplementary submission focuses on the important role the TIO can play in relation to addressing systemic issues.
This is the joint consumer group submission about the TIO’s terms of reference, led by WEstJustice. This supplementary submission focuses on the important role the TIO can play in relation to addressing systemic issues.
October 2020
Submission to: Treasury
This submission, based on the experience of the Small Business Financial Counselling Support Line, supports the proposed changes to Australia’s insolvency laws, including a new restructuring process. We also recommend that the government establish a free winding up service for micro small businesses analogous to the service provided by AFSA for personal bankruptcies. We also support the call from the Australian Small Business and Family Enterprise Ombudsman for a Small Business Viability Review Program.
This submission, based on the experience of the Small Business Financial Counselling Support Line, supports the proposed changes to Australia’s insolvency laws, including a new restructuring process. We also recommend that the government establish a free winding up service for micro small businesses analogous to the service provided by AFSA for personal bankruptcies. We also support the call from the Australian Small Business and Family Enterprise Ombudsman for a Small Business Viability Review Program.
September 2020
Submission to: Telecommunications Industry Ombudsman
This is the joint consumer group submission about the TIO’s terms of reference, led by WEstJustice. This covers a broad range of issues.
This is the joint consumer group submission about the TIO’s terms of reference, led by WEstJustice. This covers a broad range of issues.
September 2020
Submission to: Department of Communications
We support proposals 1, 2 and 3 of the paper for reform of the telecommunications industry. This needs to include comprehensive, mandatory and enforceable rules with improved effectiveness. We call on the Government to acknowledge that telecommunications are an essential service in the rules.
We support proposals 1, 2 and 3 of the paper for reform of the telecommunications industry. This needs to include comprehensive, mandatory and enforceable rules with improved effectiveness. We call on the Government to acknowledge that telecommunications are an essential service in the rules.
August 2020
Submission to: Telecommunications Industry Ombudsman
FCA’s submission is limited to the consideration of proposed changes to the TIO’s jurisdiction, specifically the inclusion of a new small business definition. Financial counsellors are increasingly assisting small business clients. We support the inclusion of an explicit definition of small business into the terms of reference, based on the number of employees. This is simple to understand and explain. We recommend that the definition be that a small business employs less than 100 employees. This is the definition used by the Australian Financial Complaints Authority (AFCA), the Australian Small Business and Family Enterprise Ombudsman and also reflects the ASIC exemption applying to financial counselling agencies under the Corporations Act.
FCA’s submission is limited to the consideration of proposed changes to the TIO’s jurisdiction, specifically the inclusion of a new small business definition. Financial counsellors are increasingly assisting small business clients. We support the inclusion of an explicit definition of small business into the terms of reference, based on the number of employees. This is simple to understand and explain. We recommend that the definition be that a small business employs less than 100 employees. This is the definition used by the Australian Financial Complaints Authority (AFCA), the Australian Small Business and Family Enterprise Ombudsman and also reflects the ASIC exemption applying to financial counselling agencies under the Corporations Act.
August 2020
Submission to: Treasury
The submission recommends that the Government implement the key recommendations of the Sylvan Review of financial counselling. This would entail formally accepting the recommendations of the Sylvan Review and immediately starting the process to draft legislation to implement the industry funding mechanism for financial counselling described in the Review. The submission also recommends that the government introduce the National Consumer Credit Protection Amendment (Small Amount Credit Contract and Consumer Lease Reforms) Bill and regulate debt management companies. All of these recommendations would help prevent financial stress and harm and are vital components of a financial recovery package.
The submission recommends that the Government implement the key recommendations of the Sylvan Review of financial counselling. This would entail formally accepting the recommendations of the Sylvan Review and immediately starting the process to draft legislation to implement the industry funding mechanism for financial counselling described in the Review. The submission also recommends that the government introduce the National Consumer Credit Protection Amendment (Small Amount Credit Contract and Consumer Lease Reforms) Bill and regulate debt management companies. All of these recommendations would help prevent financial stress and harm and are vital components of a financial recovery package.
August 2020
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.
August 2020
Submission to: ASIC
Joint submission from FCA and the State and Territory financial counselling associations supporting ASIC’s proposed use of its product intervention power to impose a total cost cap on the use by entities of the continuing credit exemption in the national credit laws. The submission includes a number of case studies documenting the significant harm caused by the use of this model by BHF Solutions and its associate Cigno.
Joint submission from FCA and the State and Territory financial counselling associations supporting ASIC’s proposed use of its product intervention power to impose a total cost cap on the use by entities of the continuing credit exemption in the national credit laws. The submission includes a number of case studies documenting the significant harm caused by the use of this model by BHF Solutions and its associate Cigno.
August 2020
Submission to: Submission to House of Representatives Standing Committee on Social Policy and Legal Affairs
This submission describes some of the systemic barriers facing women who are affected by family violence and makes recommendations to overcome them. These include the Centrelink couples rule and how this can allow one partner to control another and the financial harm visited on women and children when child support is collected through a private arrangement but the other parent pays less than promised. There is a need for Family Support Package funding so women can leave DFV relationships and re-establish and adequate access to legal advice and representation in family law matters. The submission also recommends funding for 50 specialist family violence financial counsellors so that every State and Territory has equitable access to this service.
This submission describes some of the systemic barriers facing women who are affected by family violence and makes recommendations to overcome them. These include the Centrelink couples rule and how this can allow one partner to control another and the financial harm visited on women and children when child support is collected through a private arrangement but the other parent pays less than promised. There is a need for Family Support Package funding so women can leave DFV relationships and re-establish and adequate access to legal advice and representation in family law matters. The submission also recommends funding for 50 specialist family violence financial counsellors so that every State and Territory has equitable access to this service.
June 2020
Submission to: Standing Committee on Indigenous Affairs
Joint consumer group submission (with CHOICE, ICAN and CCLSWA) documenting the high prices paid by First Nations people living in remote communities. The submission recommends that the Government develop an affordable pricing policy for remote communities, that remote stores are monitored for quality and quantity of goods as well as prices, and that income support payments are increased for people in these areas, recognising the higher cost of living.
Joint consumer group submission (with CHOICE, ICAN and CCLSWA) documenting the high prices paid by First Nations people living in remote communities. The submission recommends that the Government develop an affordable pricing policy for remote communities, that remote stores are monitored for quality and quantity of goods as well as prices, and that income support payments are increased for people in these areas, recognising the higher cost of living.
May 2020
Submission to: ACCC
Joint consumer group submission (led by the Consumers Federation of Australia) in response to an application by the Australian Banking Association and its member banks, for authorisation by the ACCC for banks to agree on the minimum standards for consumer financial relief programs and to promote customers’ access to banking services in an environment where social distancing is in place. We support both of these applications. In relation to financial relief we suggest that the ACCC’s final authorisation require that banks consult with consumer groups about their content and that there be public reporting about the outcomes of these programs.
Joint consumer group submission (led by the Consumers Federation of Australia) in response to an application by the Australian Banking Association and its member banks, for authorisation by the ACCC for banks to agree on the minimum standards for consumer financial relief programs and to promote customers’ access to banking services in an environment where social distancing is in place. We support both of these applications. In relation to financial relief we suggest that the ACCC’s final authorisation require that banks consult with consumer groups about their content and that there be public reporting about the outcomes of these programs.
March 2020
Submission to: ASIC
Joint consumer group submission (led by Consumer Action Law Centre) that strongly supports the introduction of design and distribution powers (DDOs) for ASIC. The key issue is whether these will be implemented effectively. The submission makes a number of recommendations to ensure this is the case, including a stronger product governance framework and clearer guidance.
Joint consumer group submission (led by Consumer Action Law Centre) that strongly supports the introduction of design and distribution powers (DDOs) for ASIC. The key issue is whether these will be implemented effectively. The submission makes a number of recommendations to ensure this is the case, including a stronger product governance framework and clearer guidance.
March 2020
Submission to: Australian Banking Association
This submission is in response the Australian Banking Association’s (ABA) Consultation Paper: Use of credit cards for gambling transactions (Consultation Paper).
This submission is in response the Australian Banking Association’s (ABA) Consultation Paper: Use of credit cards for gambling transactions (Consultation Paper).
February 2020
Submission to: Senate Economics Committee
Legislation first proposed by the Federal Government in October 2017 in relation to payday loans and consumer leases must be introduced urgently. People need strong consumer protections when using these high cost and potentially harmful products. The urgent reform needed is to cap the amount that a person can repay at 10% of net income.
Legislation first proposed by the Federal Government in October 2017 in relation to payday loans and consumer leases must be introduced urgently. People need strong consumer protections when using these high cost and potentially harmful products. The urgent reform needed is to cap the amount that a person can repay at 10% of net income.
February 2020
Submission to: Treasury
Joint consumer group submission (led by Consumer Action Law Centre) responding to the consultation about the design of a Compensation Scheme of Last Resort. A CLSR has been the missing piece of the regulatory architecture in financial services.
Joint consumer group submission (led by Consumer Action Law Centre) responding to the consultation about the design of a Compensation Scheme of Last Resort. A CLSR has been the missing piece of the regulatory architecture in financial services.
February 2020
Submission to: Attorney-General's Department
It should go without saying that we support the principle that people should not be subjected to discrimination on the basis of their religion. But we have concerns with the bills in their current form. They have two implications for financial counselling. First, that they would allow people to make statements that would be seen as judgemental. This is contrary to the principles of the financial counselling profession. Second, in relation to employment, the draft laws would allow religious bodies to give preference to members of their own religion.
It should go without saying that we support the principle that people should not be subjected to discrimination on the basis of their religion. But we have concerns with the bills in their current form. They have two implications for financial counselling. First, that they would allow people to make statements that would be seen as judgemental. This is contrary to the principles of the financial counselling profession. Second, in relation to employment, the draft laws would allow religious bodies to give preference to members of their own religion.
January 2020
Submission to: Reserve Bank of Australia
Joint consumer group submission (led by Choice). We argue that Buy Now Pay Later providers are not playing by the same rules as other merchants and this imposes costs on all consumers. We also welcome the RBA's intervention to coordinate regulatory and industry action in relation to managing direct debits and recurring payments. It is ludicrous that consumers still have difficulty in cancelling these deductions.
Joint consumer group submission (led by Choice). We argue that Buy Now Pay Later providers are not playing by the same rules as other merchants and this imposes costs on all consumers. We also welcome the RBA's intervention to coordinate regulatory and industry action in relation to managing direct debits and recurring payments. It is ludicrous that consumers still have difficulty in cancelling these deductions.
January 2020
Submission to: Treasury
Joint consumer group submission supporting the proposal for permanent consumer advocacy body in superannuation. We recommend that Super Consumers Australia be this independent voice.
Joint consumer group submission supporting the proposal for permanent consumer advocacy body in superannuation. We recommend that Super Consumers Australia be this independent voice.
January 2020
Submission to: Australian Small Business and Family Enterprise Ombudsman
We support an inquiry into insolvency practices and the impact on small business. Insolvency can be difficult, costly and unfair for small business. Small business needs access to expert independent free advice to ensure adequate support. The costs of insolvency need to be reduced and the structure simplified.
We support an inquiry into insolvency practices and the impact on small business. Insolvency can be difficult, costly and unfair for small business. Small business needs access to expert independent free advice to ensure adequate support. The costs of insolvency need to be reduced and the structure simplified.
January 2020
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.
October 2019
Submission to: Treasury (Financial Services Reform Taskforce)
This package of draft legislation is a direct response to the Financial Services Royal Commission. The draft bills remove the current exemptions for funeral expenses policies from the licensing and conduct regime in the Corporations Act. We also argue that other exemptions for funeral insurance should also be removed from the Life Insurance Act and the Insurance Contracts Act. The submission supports the commencement date of 1 April 2020. The submission also raises concerns about the impact on Aboriginal and Torres Strait policy holders of funeral insurance company ABCF. If this company does not obtain a licence under the new regime, a compensation/redress scheme will be needed for these policy holders. They should not face the loss of past contributions and no future coverage for the costs of their funerals, because of a past legal loopholes and poor drafting.
This package of draft legislation is a direct response to the Financial Services Royal Commission. The draft bills remove the current exemptions for funeral expenses policies from the licensing and conduct regime in the Corporations Act. We also argue that other exemptions for funeral insurance should also be removed from the Life Insurance Act and the Insurance Contracts Act. The submission supports the commencement date of 1 April 2020. The submission also raises concerns about the impact on Aboriginal and Torres Strait policy holders of funeral insurance company ABCF. If this company does not obtain a licence under the new regime, a compensation/redress scheme will be needed for these policy holders. They should not face the loss of past contributions and no future coverage for the costs of their funerals, because of a past legal loopholes and poor drafting.
October 2019
Submission to: Senate Community Affairs Committee
We do not support the proposed expansion of the compulsory cashless debit card to some people on Centrelink payments in the Northern Territory, . We remain concerned that it deprives people of choice which negatively affects their wellbeing and financial capability.
We do not support the proposed expansion of the compulsory cashless debit card to some people on Centrelink payments in the Northern Territory, . We remain concerned that it deprives people of choice which negatively affects their wellbeing and financial capability.
October 2019
Submission to: Financial Services Reform Taskforce, Treasury
We support DADOs applying as broadly as possible to reduce the number of loopholes in the law (a problem called out in the Financial Services Royal Commission). For example, DADOs should apply to buy now, pay later products. This submission supports the extension of DADOs to basic bank accounts. We argue that proposed exclusions for credit provided for business purposes and pawnbrokers should be removed, so that they are also included in the regime.
We support DADOs applying as broadly as possible to reduce the number of loopholes in the law (a problem called out in the Financial Services Royal Commission). For example, DADOs should apply to buy now, pay later products. This submission supports the extension of DADOs to basic bank accounts. We argue that proposed exclusions for credit provided for business purposes and pawnbrokers should be removed, so that they are also included in the regime.
October 2019
Submission to: Treasury
The broking industry needs wholesale reform if it is to act in the best interests of people taking out home loans. We support the imposition of a best interests duty, which should be expanded to all financial products, and the requirement to prioritise needs. There need to be stronger penalties for misconduct, the establishment of record keeping obligations and the loophole about the way a broker is defined needs to be closed. The root cause of so many problems in the mortgage broking industry is remuneration and wholesale reform is needed in this area: removing volume-based and campaign-based commissions, banning non-volume based bonuses, a prohibition on recommending excessive mortgages, ensuring that clawback arrangements encourage switching, defining conflicted remuneration, ensuring that IT software and support systems deliver fair results and ensuring that education and training events are genuine. These reforms would be pro-competitive so that brokers would be forced to scan the market and help people find a loan that best suits their needs. Although the prohibition of upfront and trail commissions are not within the scope of this proposed legislation, the consumer movement reiterates its support for these recommendations from the Financial Services Royal Commission.
The broking industry needs wholesale reform if it is to act in the best interests of people taking out home loans. We support the imposition of a best interests duty, which should be expanded to all financial products, and the requirement to prioritise needs. There need to be stronger penalties for misconduct, the establishment of record keeping obligations and the loophole about the way a broker is defined needs to be closed. The root cause of so many problems in the mortgage broking industry is remuneration and wholesale reform is needed in this area: removing volume-based and campaign-based commissions, banning non-volume based bonuses, a prohibition on recommending excessive mortgages, ensuring that clawback arrangements encourage switching, defining conflicted remuneration, ensuring that IT software and support systems deliver fair results and ensuring that education and training events are genuine. These reforms would be pro-competitive so that brokers would be forced to scan the market and help people find a loan that best suits their needs. Although the prohibition of upfront and trail commissions are not within the scope of this proposed legislation, the consumer movement reiterates its support for these recommendations from the Financial Services Royal Commission.
September 2019
Submission to: Senate Community Affairs References Committee
This is a joint submission from FCA and the State/Territory financial counselling associations. Fairness should be the underpinning principle in decisions about the level of income support payments. We support an urgent increase in Newstart by at least $75 per week to ensure people are more likely to be able to keep a roof over their heads and pay the household bills. We support an independent review of the adequacy of income support payments and the introduction of an independent body to set such payments to ensure they remain adequate into the future.
This is a joint submission from FCA and the State/Territory financial counselling associations. Fairness should be the underpinning principle in decisions about the level of income support payments. We support an urgent increase in Newstart by at least $75 per week to ensure people are more likely to be able to keep a roof over their heads and pay the household bills. We support an independent review of the adequacy of income support payments and the introduction of an independent body to set such payments to ensure they remain adequate into the future.
September 2019
Submission to: Senate Community Affairs References Committee
We do not support the continuation of the Centrelink automated debt collection process (robodebt). We remain concerned that debts claimed are inaccurate and people who may be experiencing vulnerability are paying debts they do not owe. Centrelink must be sure that a debt is owed before it commences any debt collection process and has the onus of proof. The debt collection process must be designed to be fair and take extra care in all circumstances as it is likely that the person receiving Centrelink is in financial difficulty, disadvantaged or vulnerable.
We do not support the continuation of the Centrelink automated debt collection process (robodebt). We remain concerned that debts claimed are inaccurate and people who may be experiencing vulnerability are paying debts they do not owe. Centrelink must be sure that a debt is owed before it commences any debt collection process and has the onus of proof. The debt collection process must be designed to be fair and take extra care in all circumstances as it is likely that the person receiving Centrelink is in financial difficulty, disadvantaged or vulnerable.
September 2019
Submission to: Treasury
This joint consumer group submission responds to proposed legislation to include hardship flags in credit reports. We have long opposed this approach. The submission argues that proposed retention timeframes are too long, that hardship flags should only be visible to credit providers that are making responsible lending assessments and that hardship information should not be incorporated into credit scores.
This joint consumer group submission responds to proposed legislation to include hardship flags in credit reports. We have long opposed this approach. The submission argues that proposed retention timeframes are too long, that hardship flags should only be visible to credit providers that are making responsible lending assessments and that hardship information should not be incorporated into credit scores.
August 2019
Submission to: ASIC
We have welcomed ASIC’s decision to review its guidance on internal dispute resolution for financial services providers. We support making the guidance on internal dispute resolution enforceable. We recommended that fairness and good industry practice are considered when financial firms are responding to complaints. We also supported a 30 day time limit to respond to a complaint.
We have welcomed ASIC’s decision to review its guidance on internal dispute resolution for financial services providers. We support making the guidance on internal dispute resolution enforceable. We recommended that fairness and good industry practice are considered when financial firms are responding to complaints. We also supported a 30 day time limit to respond to a complaint.
August 2019
Submission to: ASIC
We support the approach by ASIC on the implementation of the product intervention power. In legislating this power, the Parliament has recognised the need for ASIC to prevent or halt significant consumer detriment when it is identified.
We support the approach by ASIC on the implementation of the product intervention power. In legislating this power, the Parliament has recognised the need for ASIC to prevent or halt significant consumer detriment when it is identified.
July 2019
Submission to: ASIC
We support ASIC using its product intervention power to prohibit short term lending models (the Cigno model). The short term lending model currently being used by Cigno causes significant harm to people and we urge ASIC to intervene urgently.
We support ASIC using its product intervention power to prohibit short term lending models (the Cigno model). The short term lending model currently being used by Cigno causes significant harm to people and we urge ASIC to intervene urgently.
July 2019
Submission to: Australian Financial Complaints Authority (AFCA)
June 2019
Submission to: Australian Banking Association
Submission calls for the Banking Code of Practice to include among other changes: further principles and specific provisions to better protect vulnerable people; to more imaginatively set out critical information that people need to know instead of relying on the “fine print”; training for staff to help them ask direct questions about relevant personal characteristics that leave a person more vulnerable; and providing actual access in remote areas, such as pop-up banking.
Submission calls for the Banking Code of Practice to include among other changes: further principles and specific provisions to better protect vulnerable people; to more imaginatively set out critical information that people need to know instead of relying on the “fine print”; training for staff to help them ask direct questions about relevant personal characteristics that leave a person more vulnerable; and providing actual access in remote areas, such as pop-up banking.
June 2019
Submission to: Department of Agriculture
Submission calls for the RFC Service to work much more closely with generalist financial counselling services because of the many similarities in the work of both roles. Possible benefits include better communication and professional development and ultimately better client outcomes.
Submission calls for the RFC Service to work much more closely with generalist financial counselling services because of the many similarities in the work of both roles. Possible benefits include better communication and professional development and ultimately better client outcomes.
May 2019
Submission to: Australian Securities and Investments Commission
Submission calls for AFCA to make it explicit that RG209 will be a relevant factor in resolving disputes about responsible lending; that compliance with RG209 should be a key commitment in industry codes that deal with lending under the National Credit Act; that the required inquiry and verification steps be set out in RG209; that these required steps not be reduced for any credit products; and that credit providers should be audited regularly.
Submission calls for AFCA to make it explicit that RG209 will be a relevant factor in resolving disputes about responsible lending; that compliance with RG209 should be a key commitment in industry codes that deal with lending under the National Credit Act; that the required inquiry and verification steps be set out in RG209; that these required steps not be reduced for any credit products; and that credit providers should be audited regularly.
May 2019
Submission to: Treasury
Submission recommends that kinship be included as a specific category in legislation as an option for a binding death benefit nomination. This area of superannuation is complex, and binding death benefit nominations can be ruled invalid for a number of reasons. People of Aboriginal and Torres Strait Islander descent are very clear about their kinship relationships but are not able to choose their appropriate beneficiaries because such relationships are not legally recognised.
Submission recommends that kinship be included as a specific category in legislation as an option for a binding death benefit nomination. This area of superannuation is complex, and binding death benefit nominations can be ruled invalid for a number of reasons. People of Aboriginal and Torres Strait Islander descent are very clear about their kinship relationships but are not able to choose their appropriate beneficiaries because such relationships are not legally recognised.
April 2019
Submission to: The Treasury
March 2019
Submission to: Australian Senate
February 2019
Submission to: The Treasury Department
February 2019
Submission to: The Treasury
January 2019
Submission to: Department of Communications and the Arts
January 2019
Submission to: Customer Owned Banking Association
Independent Review of the Customer Owned Banking Code of Practice January 2019
Independent Review of the Customer Owned Banking Code of Practice January 2019
January 2019
Submission to: Financial Services Council
November 2018
Submission to: The Treasury
November 2018
Submission to: Australian Senate
This submission addresses the capacity and capability of the financial counselling sector to assist people experiencing financial stress. A separate submission was made in relation to credit and financial services targeted at Australians at risk of financial hardship.
This submission addresses the capacity and capability of the financial counselling sector to assist people experiencing financial stress. A separate submission was made in relation to credit and financial services targeted at Australians at risk of financial hardship.
November 2018
Submission to: Australian Senate
This submission addresses the terms of reference questions in relation to credit and financial services targeted at Australians at risk of financial hardship. A separate submission covers the capacity and capability of the financial counselling sector (TOR (c)) to assist people experiencing financial stress.
This submission addresses the terms of reference questions in relation to credit and financial services targeted at Australians at risk of financial hardship. A separate submission covers the capacity and capability of the financial counselling sector (TOR (c)) to assist people experiencing financial stress.
October 2018
Submission to: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
October 2018
Submission to: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
October 2018
Submission to: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
October 2018
Submission to: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
August 2018
Submission to: The Treasury
July 2018
Submission to: Australian Securities Investments Commissions
July 2018
Submission to: Royal Commission into the Banking, Superannuation and Financial Services Industry
July 2018
Submission to: The Treasury
June 2018
Submission to: Attorney General's Department
May 2018
Submission to: The Treasury
April 2018
Submission to: Australian Securities and Investments Commission
This submission provides a response to ASIC's draft Regulation Guide 139 and its oversight of the Australian Financial Complaints Authority.
This submission provides a response to ASIC's draft Regulation Guide 139 and its oversight of the Australian Financial Complaints Authority.
April 2018
Submission to: Productivity Commission
February 2018
Submission to: Senate Legal and Constitutional Affairs Legislation Committee
A submission that supports the changes proposed by the Exposure Draft of the Bankruptcy Amendment (Debt Agreement Reform) Bill 2018 and proposes further reforms.
A submission that supports the changes proposed by the Exposure Draft of the Bankruptcy Amendment (Debt Agreement Reform) Bill 2018 and proposes further reforms.
February 2018
Submission to: The Treasury
January 2018
Submission to: Insurance Council of Australia
January 2018
Submission to: Attorney-General’s Department
A response to the Bankruptcy Amendment (Enterprise Incentives) Bill 2017, supporting the reduction of the bankruptcy period from 3 years to 12 months and some ongoing obligations for bankrupts and proposing other amendments.
A response to the Bankruptcy Amendment (Enterprise Incentives) Bill 2017, supporting the reduction of the bankruptcy period from 3 years to 12 months and some ongoing obligations for bankrupts and proposing other amendments.
December 2017
Submission to: Commercial Radio Australia
December 2017
Submission to: Free TV Australia
December 2017
Submission to: Australian Subscription Television and Radio Association
December 2017
Submission to: The Treasury
November 2017
Submission to: Australian Competition and Consumer Commission
November 2017
Submission to: The Treasury
November 2017
Submission to: Australian Securities and Investments Commission
October 2017
Submission to: The Treasury
September 2017
Submission to: Australian Competition and Consumer Commission
September 2017
Submission to: The Productivity Commission
September 2017
Submission to: Victorian Commission for Gambling and Liquor Regulation
July 2017
Submission to: The Treasury
March 2017
Submission to: Senate Standing Committees on Community Affairs
January 2014
Submission to: The Treasury Department
A pre budget submission calling for continued funding for financial counselling.
A pre budget submission calling for continued funding for financial counselling.