problem, solution, help-2731501.jpg
“This legislation is terrific,” Ms Levin said. “We’re delighted that it covers not only credit cards, but also digital wallets and digital currencies.”
Ms Levin said the one area of disappointment was a carve-out for online lotteries.
consulting, business people, silhouettes-1292328.jpg
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.
Read More ASIC Consultation on Extending Product Intervention Orders on Short Term Credit Facilities and Continuing Credit Contracts
Bronze Justice statue
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).
Read More Cigno, BHF Solutions Found to Have Engaged in Unlicensed Conduct
Logo - Closing Lending Loopholes
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…
Read More Advocates and industry agree: Time to close lending loopholes on buy now, pay later
Post thumbnail
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…
Read More Consumer protections for high-cost and harmful payday loans and consumer leases finally pass Parliament
online store, online shop, store-3265497.jpg
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…
Read More Buy now pay later changes must go all the way, consumer groups say
tap card payment
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…
Read More Global alliance calls for regulation of harmful buy now, pay later industry
Post thumbnail
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)…
Read More Tougher consumer protections at core of payments reform welcomed
Post thumbnail
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…
Read More Telcos and credit providers fail consumers during COVID-19, says new scorecard
Hands opening an empty brown leather wallet
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…
Read More Up to 1.9 million Australians paid debt vultures in the last 12 months: Consumer Action Law Centre
a credit card
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…
Read More 122 organisations join together to oppose Government’s plan to axe safe lending laws
A gold credit card
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…
Read More Consumer groups slam move to remove responsible lending laws
