Credit Archives - Page 2 of 12 - Consumers' Federation of Australia

18 August , 2023

ASIC Consultation on Extending Product Intervention Orders on Short Term Credit Facilities and Continuing Credit Contracts

The current product intervention orders came into effect on Friday 15 July 2022. They reinforce consumer protections by prohibiting the provision of short term credit and continuing credit contracts, which involve unreasonably high fees charged to retail clients. These fees exceed the cost caps imposed by the National Credit Code.

If not extended, the short term credit and continuing credit contracts product intervention orders will expire on 15 January 2024.

18 July , 2023

Cigno, BHF Solutions Found to Have Engaged in Unlicensed Conduct

ASIC has been successful in its action against Cigno Pty Ltd (Cigno) and BHF Solutions Pty Ltd (BHF Solutions), with the Federal Court finding that both companies engaged in credit activities without holding an Australian credit licence. ASIC also obtained permanent injunctions against Cigno and BHF Solutions to protect consumers.

The decision follows a series of appeals during the litigation, including an unsuccessful bid by Cigno and BHF Solutions to seek special leave in the High Court in December 2022 (22-360MR).

17 February , 2023

Advocates and industry agree: Time to close lending loopholes on buy now, pay later

Key stakeholders call for buy now, pay later should be regulated as meantime credit In submissions released publicly by the Treasury today, major banks, industry associations, regulators and consumer advocates are unified in calling for an end to lending loopholes allowing buy now, pay later providers to avoid safe lending laws. Groups who made submissions…

3 December , 2022

Consumer protections for high-cost and harmful payday loans and consumer leases finally pass Parliament

After a late-night Senate sitting, Consumer Advocacy groups across Australia are celebrating the passing through the Federal Parliament of long overdue reforms that will protect consumers from falling into payday loans and consumer lease debt traps. The Financial Sector Reform Bill 2022 has finally passed after 6 years of advocacy by the Stop the Debt…

22 November , 2022

Buy now pay later changes must go all the way, consumer groups say

Buy now pay later (BNPL) products must be fully regulated as credit to protect consumers and put all credit providers on a level playing field, a coalition of consumer groups has said. The group, including CHOICE, financial counselling associations and consumer legal centres, has made the call as Treasury releases a consultation paper setting out…

18 March , 2022

Global alliance calls for regulation of harmful buy now, pay later industry

CHOICE has joined consumer groups from 9 countries, including Consumers’ Federation of Australia (CFA), calling for urgent action on buy now, pay later (BNPL) credit providers as new data shows many Australians are struggling with this form of debt. This is a media release from CHOICE. It was originally published on 17th March, 2022. The global statement…

9 December , 2021

Tougher consumer protections at core of payments reform welcomed

Treasurer Josh Frydenberg’s announcement today that the Government intends to reform Australia’s payment systems is a real opportunity to improve consumer protection, according to Consumer Action Law Centre. This is a media release from the Consumer Action Law Centre. It was originally published on 8th December, 2021. “Today’s announcement foreshadows consultation on regulatory arrangements for Buy Now Pay Later (BNPL)…

24 September , 2021

Telcos and credit providers fail consumers during COVID-19, says new scorecard

Telecommunications and credit and personal finance providers were found to be joint wooden spoon winners in a 2020 Sector Scorecard developed by Consumer Policy Research Centre and Roy Morgan. By delivering the joint worst customer experience overall these sectors have let down their customers when they most needed support. This highlights the need for increased…

16 December , 2020

Up to 1.9 million Australians paid debt vultures in the last 12 months: Consumer Action Law Centre

According to a new report released yesterday by Consumer Action Law Centre, approximately 1.4 to 1.9 million Australians have paid for debt management or credit repair services in the last 12 months. These companies are known as ‘debt vultures’ as they often target people in financial hardship with poor quality debt advice and services. This a Consumer…

24 November , 2020

122 organisations join together to oppose Government’s plan to axe safe lending laws

The Consumers’ Federation of Australia has joined organisations and prominent individuals nation-wide in an open letter calling for Senators to block the weakening of safe lending laws. The following is a CHOICE media release. Axing safe lending laws will be bad for people, bad for the economy and directly contradict the first recommendation of the…

25 September , 2020

Consumer groups slam move to remove responsible lending laws

Removing credit protections will cause harm to people and the economy CHOICE, Consumer Action Law Centre, Financial Counselling Australia and Financial Rights Legal Centre have responded to the Government’s announcement that it will remove credit protections for borrowers saying right now what people need is more income, not more debt. Government’s proposed reforms will remove bank responsibility…

17 May , 2020

Consumer groups say a self-regulatory code for Buy Now Pay Later lenders is no substitute for consumer protection in law

Thirteen consumer groups have joined together to provide a submission on the draft Buy Now Pay Later Code of Practice (BNPL code), developed by the Australian Finance Industry Association (AFIA). While noting that industry codes can provide beneficial commitments, the consumer advocates consider inconsistent regulation among buy now pay later products and other consumer credit…