New Centrepay Reform Bans Predatory Rent-to-Buy’s in Win for Consumers and Advocates

News

Consumer Action Law Centre CEO Stephanie Tonkin said she was absolutely delighted that Minister Bill Shorten has announced consumer protections and reforms to Centrepay that restore it to its original purpose; that it should only be used by consumers to make regular voluntary payments for essential bills and expenses. (link to media release)

“We have been fighting for this outcome with First Nations leaders our colleagues in the broader consumer advocacy sector for more than ten years, and I congratulate everyone who has made such an important contribution,” Ms Tonkin said.

The right of businesses to be on Centrepay is a privilege and has been systemically abused by many consumer lease businesses for decades.

20 years ago, one of Victoria’s first financial counsellors, Jan Pentland, voiced her concerns with Centrepay with the Australian Securities and Investment Commission, but her advocacy fell on deaf ears. Financial Counselling Australia (FCA) published a report in 2013 entitled “Centrepay – a good idea that lost its way“.

In 2015, Consumer Action with Financial Rights Legal Centre, Financial Counselling Australia and Indigenous Consumer Assistance Network called on the then Government “…to protect the integrity of Centrelink’s budgeting tool for essentials, Centrepay, by excluding rent-to-buy products.”

“Sadly, our call for reform in 2015 was ignored, and in the intervening years the financial harms inflicted -particularly on First Nations people using Centrepay – have been devastating,” she said.

“With these reforms in place, let’s hope the unfair and dodgy consumer leases promoted by predatory businesses on Centrepay are a thing of the past.”

Above is a news release from Consumer Action Law Centre (2/12/2024). The original article, along with the relevant media contact details, is available on Consumer Action’s website here. CFA would like to congratulate all of the advocates who participated in securing this much-needed reform.

Consumer Action Law Centre, Financial Counselling Australia, Financial Rights Legal Centre and Indigenous Consumer Assistance Network are all valued members of Consumers’ Federation of Australia.