Credit Archives - Page 3 of 12 - Consumers' Federation of Australia

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…

22 April , 2020

“Banks need to go further on their coronavirus response”: CHOICE

Consumer advocate CHOICE is urging Australian banks to go further in their response to COVID-19, flagging that many Australians are still being harmed by high cost credit cards, personal loans and long term debt. “We welcome that many banks have announced initial support packages for customers but we know they can go further. We have…

13 January , 2020

Credit reporting changes to benefit consumers

The Office of the Australian Information Commissioner (OAIC) has approved amendments to the Credit Reporting Code 2014 that will benefit consumers. The changes follow an application by the Australian Retail Credit Association (ARCA) and consultation with consumer groups, industry and regulators. Australian Information Commissioner and Privacy Commissioner Angelene Falk said that amendments to the Code…

28 August , 2019

CFA joins the Stop the Debt Trap Alliance

Consumers’ Federation of Australia has joined a group of financial experts, community advocates, and service providers determined to see stronger laws implemented to protect Australians from irresponsible lenders. The Alliance’s statement: To the Australian Government: Every day our organisations deal with Australians who have been trapped in crippling debt due to high-cost fast loans and…

11 July , 2019

Consumer advocates welcome ASIC intervention in Short Term Credit Market

Financial Rights Legal Centre (Financial Rights), Consumer Action Law Centre (Consumer Action) and Financial Counselling Australia (FCA) have welcomed the Australian Securities and Investment Commission’s (ASIC’s) announcement that it will consult on using new Product Intervention Powers to intervene in the short term credit industry. The new product intervention power allows ASIC to intervene where…

11 July , 2019

Regulator slams ‘junk insurance’ sold by banks as Aussies demand over $2 million in refunds

The Australian Securities and Investments Commission (ASIC) report released today confirms that consumer credit insurance, commonly tacked on when taking out a loan or credit card, is junk. This news comes as Australians demand over $2 million worth of refunds after being ripped off by junk insurance through Consumer Action’s DemandARefund tool. ASIC’s report…

18 December , 2018

Lenders commit to improve credit card practices following ASIC review

Today ASIC has released Report 604 Credit card lending in Australia – An update (REP 604), which sets out the changes being made by lenders to help consumers with credit card debt. In July 2018, ASIC released Report 580 Credit card lending in Australia (REP 580), which found more than one in six consumers is struggling with credit card debt. The…

4 July , 2018

Credit cards should not be a lifelong debt sentence

A proposal to prevent credit cards becoming a lifelong debt sentence has been welcomed by Consumer Action Law Centre. The Australian Securities & Investment Commission (ASIC) has released its proposal together with a new report examining credit card lending in Australia. The report finds that credit card debt is causing problems for at least 1.9…

25 June , 2018

Fair Finance Day of Action

Australia’s leading consumer groups will join forces in Canberra today to call on the Federal Government to strengthen our laws to stop irresponsible, harmful lending practices in our financial services sector. “Irresponsible lending and crippling debt are having a real, devastating impact on Australians, putting people at risk of bankruptcy, homelessness and life-long debt,” says…

5 June , 2018

ASIC warns consumers about paying high fees for credit repair and debt advice services

ASIC is warning consumers about companies that claim they can fix a poor credit rating. ASIC is running a month-long campaign, with other Commonwealth, state and territory agencies, to help consumers understand that by using credit repair and debt management firms they may end up paying high fees. Consumers should be aware these companies often…

15 February , 2018

Credit card reforms long overdue

On 15th February, a package of reforms to improve credit card lending and marketing practices passed Federal Parliament. Consumer advocacy groups Consumer Action Law Centre and CHOICE are relieved to see the important reforms finally enacted after a long consultation process. The reforms will: require affordability assessments to be based on a person’s ability to…

28 March , 2017

120 Day Delay Inflicting Greater Payday Pain

Consumer groups call for the Federal Government to take immediate action to protect payday loan and lease borrowers The Consumers Federation of Australia, CHOICE, Consumer Action Law Centre, Financial Counselling Australia, Financial Rights Legal Centre, Consumer Credit Legal Service (WA) and Good Shepherd Microfinance are calling for the Federal Government to immediately introduce legislation to better protect borrowers of toxic loans and leases and increase funding to financial counselling…