Chapter 1 - Committee view
[1]
UnitingCare, Submission 49, p. 12.
[2]
NAB and the Centre for Social Impact, Financial Security and the
influence of economic resources, December 2018, https://www.csi.edu.au/media/2018-Financial-Resilience-in-Australia.pdf
(accessed 19 February 2019), p. 6.
[3]
Consumer Action Law Centre, Submission 37, p. 6.
[4]
Financial Counselling Australia, Submission 57, p. 6.
[5]
Consumer Action Law Centre, Submission 37, p. 6.
[6]
The Treasury, Review of the small amount credit contract laws, Final
Report, March 2016, p. 4, https://static.treasury.gov.au/uploads/sites/1/2017/06/C2016-016_SACC-Final-Report.pdf,
(accessed 5 December 2018).
[7]
The Treasury, Small Amount Credit Contract and Consumer Lease Reforms,
https://treasury.gov.au/consultation/c2017-t229374/
(accessed 21 February 2019).
[8]
Consumer Action Law Centre, Submission 37, p. 3.
[9]
Mrs Sandra Blake, Financial Counsellor, Financial Counselling Australia,
Committee Hansard, 12 December 2018, p. 3.
[10]
Ms Corinne Proske, General Manager, Retail and Online, Good Shepherd
Microfinance, Committee Hansard, 12 December 2018, p. 40.
[11]
Mr Paul Holmes, Senior Lawyer, Civil Justice Services (Consumer
Protection), Legal Aid Queensland, Committee Hansard, 22 January 2019,
p. 26.
[12]
Mr Paul Holmes, Senior Lawyer, Civil Justice Services (Consumer
Protection), Legal Aid Queensland, Committee Hansard, 22 January 2019,
p. 26.
[13]
Mr Richard Wood, Credit Manager, Good Shepherd Microfinance, Committee
Hansard, 12 December 2018, p. 40.
[14]
Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry, Final Report, vol. 1, pp. 86–87.
[15]
Ms Miranda Nagy, Principal Lawyer, Maurice Blackburn Lawyers, Committee
Hansard, 12 December 2018, p. 38.
[16]
Senate Economics Legislation Committee, Treasury Laws Amendment (Design
and Distribution Obligations and Product Intervention Powers) Bill 2018
[Provisions], November 2018.
[17]
Consumer Action Law Centre, Submission 37, p. 22.
[18]
The Salvation Army, Submission 9, p. 12.
[19]
Legal Aid Queensland, Submission 3, p. 11.
[20]
Ms Karen Cox, Chief Executive Officer, Financial Rights Legal Centre, Committee
Hansard, 12 December 2018, p. 27.
[21]
Henry, Committee Hansard, 12 December 2018, p. 24.
[22]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 9.
[23]
ASIC, Report 600: Review of buy now pay later arrangements,
November 2018, p.12, https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-600-review-of-buy-now-pay-later-arrangements/
(accessed 20 February 2019).
[24]
Mr Nick Molnar, Chief Executive Officer and Co-Founder, Afterpay, Committee
Hansard, 22 January 2019, p. 13.
[25]
Mr Nick Molnar, Chief Executive Officer and Co-Founder, Afterpay, Committee
Hansard, 22 January 2019, p. 9.
[26]
Dr Paul Harrison, Centre for Employee and Consumer Wellbeing, Deakin
University, Committee Hansard, 22 January 2019, pp. 1–5.
[27]
Mr Gavin Matthews, General Manager, Older Australians, Department of Human
Services, Committee Hansard, 24 January 2019,p. 21.
[28]
Mr Michael Saadat, Senior Executive Leader, Deposit Takers, Credit and
Insurers, Australian Securities and Investments Commission, Committee
Hansard, 24 January 2019, p. 13.
[29]
The Salvation Army, Submission 9, p. 9.
[30]
Financial Rights Legal Centre, Submission 31, p. 12.
[31]
Financial Rights Legal Centre, Submission 31, p. 13.
[32]
Mr Gavin Matthews, General Manager, Older Australians, Department of Human
Services, Committee Hansard, 24 January 2019, p. 22.
[33]
Mr Gavin Matthews, General Manager, Older Australians, Department of Human
Services, Committee Hansard, 24 January 2019, p. 23.
[34]
Financial Counselling Hunter Valley Project, Submission 2, p. 1.
[35]
Financial Counselling Australia, Supplementary submission 57.1, p.
14.
[36]
Financial Counselling Australia, Supplementary submission 57.1, p
9.
[37] Consumer
Action Law Centre and Financial Rights Legal Centre, Submission 42,
p. 3.
[38]
Good Shepherd Microfinance, Submission 50, p. 1.
Chapter 2 - Background
[1] NAB and the
Centre for Social Impact, Measuring financial exclusion in Australia:
May 2011, https://financialcapability.gov.au/files/nab-financial-exclusion-report_final.pdf;
May 2012, https://www.csi.edu.au/media/uploads/Measuring_Financial_Exclusion_in_Austraila_-_May_2012.pdf;
April 2014 https://www.nab.com.au/content/dam/nabrwd/documents/
reports/financial/2014-measuring-financial-exclusion-in-australia.pdf (all
accessed 31 January 2019); Financial Security and the influence of
economic resources, December 2018, https://www.csi.edu.au/media/2018-Financial-Resilience-in-Australia.pdf
(accessed 19 February 2019).
[2] D Blakey
(HESTA Superannuation Fund), 'We should all do more to combat financial
exclusion', Investment Magazine, 25 November 2016, https://www.investmentmagazine.
com.au/2016/11/we-should-all-do-more-to-combat-financial-exclusion/ (accessed
31 January 2019).
[3]
Department of Social Services, Submission 63, p. 3. But Treasury
notes that the large banks still provide small amount credit, but they are not
classified as SACCs when they are offered by an authorised deposit-taking
institution. See Ms Kate Lynch, Principal Adviser, Consumer and Corporations
Policy Division, Markets Group, Department of the Treasury, Committee
Hansard, 24 January 2019, p. 31.
[4] Centre for
Social Impact, Measuring financial exclusion in Australia April 2014 https://www.nab.com.au/content/dam/nabrwd/documents/reports/financial/2014-measuring-financial-exclusion-in-australia.pdf
(accessed 31 January 2019).
[5]
Department of Social Services, Submission 63, p. 3.
[6]
Department of Social Services, Submission 63, p. 3.
[7]
Ms Elizabeth Heferen-Webb, Deputy Secretary, Department of Social
Services, Committee Hansard, 24 January 2019, p. 19.
[8]
M Banks, A de Silva and R Russell, Trends in the Australian small
loan market (payday lending), Australian Centre for Financial Studies,
October 2015, p. 5, https://australiancentre.com.au/wp-content/uploads/2015/10/Commissioned-paper-Trends-in-the-Australian-small-loan-market.pdf
(accessed 5 December 2018).
[9] G North, Small
Amount Credit Contract Reforms in Australia: Household Survey Evidence and
Analysis, Journal of Banking and Finance Law and Practice 203, 2016, p.
7.
[10]
Australian Financial Security Agency (AFSA), Submission 4, p. 3.
[11]
Mr David Bergman, National Manager, Insolvency and Trustee Services,
Australian Financial Security Authority, Committee Hansard, 24 January
2019, p. 3.
[12]
TasCOSS, Submission 5, p. 3; Anglicare Tasmania, Submission 7,
p. 4.
[13]
G North, Small Amount Credit Contract Reforms in Australia: Household
Survey Evidence and Analysis, p.13.
[14]
M Banks, A de Silva and R Russell, Trends in the Australian small loan
market (payday lending), p. 5.
[15]
Mr Tony Devlin, National Manager, Moneycare Program, The Salvation Army, Committee
Hansard, 22 January 2019, p. 21.
[16]
Mr Larry Diamond, Co-Founder and Chief Executive Officer, Zip.co, Committee
Hansard, 22 January 2019, p. 9; Mr Nick Molnar, Chief Executive
Officer and Co-Founder, Afterpay, Committee Hansard, 22 January
2019, p. 10.
[17]
Mr Tony Devlin, National Manager, Moneycare Program, The Salvation Army, Committee
Hansard, 22 January 2019, p. 21.
[18]
Mr Tony Devlin, National Manager, Moneycare Program, The Salvation Army, Committee
Hansard, 22 January 2019, p. 24.
[19] See for
example D Chau, Cash Converters settles class action for $16.4 million,
ABC News, 22 October 2018, https://www.abc.net.au/news/2018-10-22/cash-converters-settles-class-action-$16.4-million/10403750
(accessed 31 January 2019).
[20]
Senate Economics Legislation Committee, Treasury Laws Amendment (Design
and Distribution Obligations and Product Intervention Powers) Bill 2018
[Provisions], November 2018, pp. 8–10.
[21]
Senate Economics Legislation Committee, Treasury Laws Amendment (Design
and Distribution Obligations and Product Intervention Powers) Bill 2018
[Provisions], November 2018, p. 12; see also Ms Kate Lynch, Principal
Adviser, Consumer and Corporations Policy Division, Markets Group, Department
of the Treasury, Committee Hansard, 24 January 2019, p. 32.
[22]
Senate Economics Legislation Committee, Treasury Laws Amendment (Design
and Distribution Obligations and Product Intervention Powers) Bill 2018
[Provisions], November 2018, p. 13.
[23]
Senate Economics Legislation Committee, Treasury Laws Amendment (Design
and Distribution Obligations and Product Intervention Powers) Bill 2018
[Provisions], November 2018, p. 16.
[24]
Treasury Laws Amendment (Consumer Data Right) Bill 2019.
[25]
The Treasury, Review of the small amount credit contract laws,
March 2016, https://static.treasury.gov.au/uploads/sites/1/2017/06/C2016-016_SACC-Final-Report.pdf,
(accessed 5 December 2018).
[26]
SACC providers can currently charge a maximum establishment fee of 20 per
cent of the adjusted credit amount (cash in hand to the consumer) and a monthly
fee of a maximum of 4 per cent of the adjusted credit amount. The 4 per
cent monthly fee is charged on the initial amount not on a diminishing balance
as with an interest rate, so it is greater than an annual percentage rate of 48
per cent.
[27]
Ms Kate Lynch, Principal Adviser, Consumer and Corporations Policy
Division, Markets Group, Department of the Treasury, Committee Hansard,
24 January 2019, p. 30.
[28]
The Treasury, Small Amount Credit Contract and Consumer Lease Reforms,
https://treasury.gov.au/consultation/c2017-t229374/
(accessed 5 December 2018).
[29]
Ms Kate Lynch, Principal Adviser, Consumer and Corporations Policy
Division, Markets Group, Department of the Treasury, Committee Hansard,
24 January 2019, p. 29.
[30]
ASIC, Report 426 Payday lenders and the new small amount lending
provisions, https://download.asic.gov.au/media/3038267/rep-426-published-17-march-2015.pdf (accessed 1 February 2019).
[31]
ASIC, Report 447 Cost of consumer leases for household goods, https://download.asic.gov.au
/media/3350956/rep-447-published-11-september-2015.pdf (accessed 1 February 2019).
[32]
ASIC, Report 465 Paying to get out of debt or clear your record: The
promise of debt management firms, https://download.asic.gov.au/media/3515432/rep465-published-21-january-2016.pdf (accessed 1 February 2019).
[33] ASIC,
Report 600 Review of buy now pay later arrangements, https://download.
asic.gov.au/media/4947835/rep600-published-28-11-2018.pdf (accessed 1 February
2019)
[34]
The Treasury, Review into External Dispute Resolution and Complaints
Framework, 2016–17, https://treasury.gov.au/review/review-into-dispute-resolution-and-complaints-framework/
(accessed 21 February 2019).
[35]
The Prime Minister has indicated that the government will establish such a
scheme: see M Grattan, 'Compensation
scheme to follow Hayne's indictment of financial sector', The Conversation,
4 February 2019, https://theconversation.com/compensation-scheme-to-follow-haynes-indictment-of-financial-sector-110981 (accessed 14 February 2019).
[36]
Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry, Final Report, vol. 1, p. 483, pp. 52–60,
pp. 490–493, p. 134.
[37]
Department of Social Services, Submission 63, p. 5.
[38]
Ms Elizabeth Hefren-Webb, Deputy Secretary, Committee Hansard, 24
January 2019, p. 19.
[39]
Department of Social Services, Submission 63, p. 5.
[40]
Department of Human Services, Centrepay, https://www.humanservices.gov.au/individuals/
services/centrelink/centrepay (accessed 4 February 2019).
[41]
Australian Financial Complaints Authority, About AFCA: what we do, https://www.afca.org.au/about-afca/
(accessed 4 February 2019).
[42]
Australian Financial Security Authority, About us, https://www.afsa.gov.au/ (accessed
4 February 2019).
Chapter 3 - Payday loans and consumer leases
[1]
ASIC, Submission 21, p. 8.
[2]
Consumer Action Law Centre, Submission 37, p.
6.
[3]
The Treasury, Review of the Small Amount Credit Contract Laws,
March 2016, fn 2, p. 1, https://static.treasury.gov.au/uploads/sites/1/2017/06/C2016-016_SACC-Final-Report.pdf
(accessed 5 February 2019).
[4]
National Credit Providers Association, Submission 51, p. 4.
[5]
National Credit Providers Association, Submission 51, p. 15.
[6]
Ms Corinne Proske, General Manager, Retail and Online, Good Shepherd
Microfinance, Committee Hansard, 12 December 2019, pp. 40–41.
[7]
Finance Industry Delegation, Submission 41, p. 3.
[8]
Moneybox Loans Pty Ltd, Submission 27, p. 1.
[9]
ASIC, National Credit Code, https://asic.gov.au/regulatory-resources/credit/credit-general-conduct-obligations/national-credit-code/
(accessed 4 February 2019).
[10]
Consumer Action Law Centre, Submission 37, pp. 15–19.
[11]
Mr Michael Saadat, Senior Executive Leader, Deposit Takers, Credit and
Insurers, Australian Securities and Investments Commission, Committee
Hansard, 24 January 2019, p. 12.
[12]
ASIC, Submission 21, pp. 25–26.
[13]
National Credit Providers Association, Submission 51, p. 19.
[14]
Financial Counselling Hunter Valley Project Inc, Submission 2, [p. 2].
[15]
The Treasury, Review of the Small Amount Credit Contract Laws,
March 2016, fn 2, p. 1, https://static.treasury.gov.au/uploads/sites/1/2017/06/C2016-016_SACC-Final-Report.pdf
(accessed 5 February 2019).
[16]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, Australian
Financial Complaints Authority, Committee Hansard, 24 January 2019, p.
2.
[17]
Consumer Household Equipment Rental Providers Association, Submission
25, p. 2.
[18]
Australian Finance Industry Association, Submission 8, [p. 1].
[19]
ASIC, Report 447: Cost of consumer leases for household goods,
September 2015, p. 11, https://download.asic.gov.au/media/3350956/rep-447-published-11-september-2015.pdf
(accessed 11 February 2019).
[20]
Consumer Household Equipment Rental Providers Association, Submission
25, p. 2.
[21]
Mr Tim Luce, Chief Executive Officer, Thorn Group Limited, Committee
Hansard, 22 January 2019, p. 41.
[22]
ASIC, Report 447: Cost of consumer leases for household goods, p.
11.
[23]
Mr Benjamin Paris, Personal Insolvency Professionals Association, Committee
Hansard, 12 December 2018, p. 47.
[24]
ASIC, Submission 21, p. 8.
[25]
Consumer Credit Legal Service (WA) Inc, Submission 20, p. 7.
[26]
National Credit Providers Association, Submission 51, attachment 2,
p. 2.
[27]
Ms Fiona Guthrie, Chief Executive Officer, Financial Counselling
Australia, Committee Hansard, 12 December 2018, p. 5.
[28]
Mr Paul Holmes, Senior Lawyer, Civil Justice Services (Consumer
Protection), Legal Aid Queensland, Committee Hansard, 22 January 2019,
p. 25.
[29]
Salvation Army, Submission 9, p. 8.
[30]
Good Shepherd Microfinance, Submission 50, [p. 2].
[31]
Ms Karen Cox, Chief Executive Officer, Financial Rights Legal Centre, Committee
Hansard, 12 December 2018, p. 31.
[32]
Mr Tony Devlin, National Manager, Moneycare Program, Salvation Army
Australia, Committee Hansard, 22 January 2019, p. 22.
[33]
Legal Aid Queensland, Submission 3, p. 4.
[34]
Care Inc, Submission 11, p. 3; Legal Aid Queensland, Submission
3, p. 4.
[35]
Good Shepherd Microfinance, Submission 50, [p. 3].
[36]
Mentone Community Assistance and Information Bureau Inc, Submission 35,
p. 2.
[37]
ASIC, Submission 21, p. 9.
[38]
ASIC, Submission 21, p. 9; see also ASIC, Cost of consumer
leases for household goods, September 2015, p. 4.
[39]
Mr Richard Wood, Credit Manager, Good Shepherd Microfinance, Committee
Hansard, 12 December 2018, p. 40.
[40]
Mr Tony Devlin, National Manager, Moneycare Program, Salvation Army
Australia, Committee Hansard, 22 January 2019, p. 21.
[41]
National Credit Providers Association, Submission 51, p. 5.
[42]
National Credit Providers Association, Submission 51, p. 15.
[43]
The Salvation Army Australia, Submission 9, p. 8.
[44]
Mr Paul Holmes, Senior Lawyer, Civil Justice Services (Consumer
Protection) Legal Aid Queensland, Committee Hansard, 22 January 2019, p.
25.
[45]
Mr Tony Devlin, National Manager, Moneycare Program, The Salvation Army
Australia, Committee Hansard, 22 January 2019, p. 21.
[46]
Mr Paul Holmes, Senior Lawyer, Civil Justice Services (Consumer
Protection) Legal Aid Queensland, Committee Hansard, 22 January 2019, p.
25.
[47]
Dr Paul Harrison, Centre for Employee and Consumer Wellbeing, Deakin
University, Committee Hansard, 22 January 2019, pp. 1–5.
[48]
Ms Corinne Proske, General Manager, Retail and Online, Good Shepherd
Microfinance, Committee Hansard, 12 December 2018, p. 39.
[49]
Mr Richard Wood, Credit Manager, Good Shepherd Microfinance, Committee
Hansard, 12 December 2018, p. 40.
[50]
Consumer Action Law Centre, Submission 37, p. 7.
[51]
ASIC, Submission 21, p. 17.
[52]
Ms Karen Cox, Chief Executive Officer, Financial Rights Legal Centre, Committee
Hansard, 12 December 2018, p. 28.
[53]
Ms Rose McGrath, Senior Policy Officer, Queensland Council of Social
Service, Committee Hansard, 22 January 2019, pp. 30–31.
[54]
Tasmanian Council of Social Service, Submission 5, p. 4.
[55]
Submission 46, p. 1.
[56]
Good Shepherd Microfinance, Submission 50, [p. 2].
[57]
Legal Aid Queensland, Submission 3, p. 2.
[58]
Ms Roberta Grealish, Senior Solicitor, Consumer Credit Legal Service (WA)
Inc, Committee Hansard, 12 December 2018, p. 22.
[59]
Mrs Sandra Blake, Financial Counsellor, Financial Counselling Australia, Committee
Hansard, 12 December 2018, p .3.
[60]
Mr Paul Holmes, Senior Lawyer, Civil Justice Services (Consumer
Protection), Legal Aid Queensland, Committee Hansard, 22 January 2019,
p. 26.
[61]
Legal Aid Queensland, Submission 3, pp. 3–4.
[62]
Mr Richard Wood, Credit Manager, Good Shepherd Microfinance, Committee
Hansard, 12 December 2018, p. 40.
[63]
Ms Corinne Proske, General Manager, Retail and Online, Good Shepherd
Microfinance, Committee Hansard, 12 December 2018, p. 40.
[64]
Consumer Household Equipment Rental Providers Association, Submission
25, p. 5.
[65]
Mr Steven King, President , Consumer Household Equipment Rental Providers
Association, Committee Hansard, 12 December 2018, p. 15.
[66]
For example, Salvation Army, Submission 9, p. 9.
[67]
Consumer Action Law Centre, Submission 37, p. 9.
[68]
ASIC, Submission 21, p. 12.
[69]
ASIC, answer to question on notice no. 4, 1 February 2019.
[70]
For example, Mr Michael Saadat, Senior Executive Leader, Deposit Takers,
Credit and Insurers, Australian Securities and Investments Commission, Committee
Hansard, 24 January 2019, p. 13.
[71]
Mentone Community Assistance and Information Bureau Incorporated, Submission
35, p. 2.
[72]
Ms Fiona Guthrie, Chief Executive Officer, Financial Counselling
Australia, Committee Hansard, 12 December 2018, pp.3–4.
[73]
Mr Sam Budiselik, Interim Chief Executive Officer, Cash Converters
International Ltd, Committee Hansard, 12 December 2018, p. 7.
[74]
Mr Robert Bryant, Chairman, National Credit Providers Association, Committee
Hansard, 12 December 2018, p. 15, p. 18.
[75]
Mr Michael Rudd, Director, National Credit Providers Association, Committee
Hansard, 12 December 2018, p. 18.
[76]
Mr Steven King, President, CHERPA, Committee Hansard,
12 December 2018, p.17.
[77]
Mr Tim Luce, Chief Executive Officer, and Mr Peter Forsberg, Chief
Financial Officer, Thorn Group, Committee Hansard, 22 January 2019, p. 44.
[78]
Ms Carly Hyde, Policy Lead, Queensland Council of Social Service, Committee
Hansard, 22 January 2019, p. 32.
[79]
Salvation Army, Submission 9, p. 9; Care Inc, Submission 11,
p. 3; Consumer Action Law Centre, Submission 37, pp. 10–11; see also
ASIC, Submission 21, p. 8.
[80]
Financial Counsellors Association of NSW Inc, Submission 13, p. 4;
Consumer Action Law Centre, Submission 37, pp. 10–11.
[81]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, Australian
Financial Complaints Authority, Committee Hansard, 24 January 2019, p.
2.
[82]
Mr Gavin Matthews, General Manager, Older Australians, Department of Human
Services, Committee Hansard, 24 January 2019, p. 21.
[83]
Mr Gavin Matthews, General Manager, Older Australians, Department of Human
Services, Committee Hansard, 24 January 2019, pp. 20–21.
[84]
Mr Tim Luce, Chief Executive Officer, Thorn Group, Committee Hansard,
22 January 2019, p. 43.
[85]
Mr Peter Forsberg, Chief Financial Officer, Thorn Group, Committee
Hansard, 22 January 2019, p. 43.
[86]
Mr Gavin Matthews, General Manager, Older Australians, Department of Human
Services, Committee Hansard, 24 January 2019, p. 21.
[87]
Mr Gavin Matthews, General Manager, Older Australians, Department of Human
Services, Committee Hansard, 24 January 2019, p. 23.
[88]
Mr Gavin Matthews, General Manager, Older Australians, Department of Human
Services, Committee Hansard, 24 January 2019, p. 23.
[89]
Mr Gavin Matthews, General Manager, Older Australians, Department of Human
Services, Committee Hansard, 24 January 2019, p. 22.
[90]
Ms Fiona Guthrie, Chief Executive Officer, Financial Counselling
Australia, Committee Hansard, 12 December 2018, p. 5.
[91]
ASIC, Submission 21, p. 12.
[92]
Mr Michael Saadat, Senior Executive Leader, Deposit Takers, Credit and
Insurers, Australian Securities and Investments Commission, Committee
Hansard, 24 January 2019, p. 13.
[93]
Ms Miranda Nagy, Principal Lawyer, Maurice Blackburn Lawyers, Committee
Hansard, 12 December 2018, p. 36.
[94]
Mr Steven King, President, Consumer Household Equipment Rental Providers
Association, Committee Hansard, 12 December 2018, p. 20.
[95]
Mr Tim Luce, Chief Executive Officer, Thorn Group, Committee Hansard,
22 January 2019, p. 41.
[96]
Mr Tony Devlin, National Manager, Moneycare Program, The Salvation Army
Australia, Committee Hansard, 22 January 2019, p. 22.
[97]
ASIC, Payday lenders and the new small amount lending provisions,
Report 426, March 2015, pp. 4–5, https://www.asic.gov.au/media/3038267/rep-426-published-17-march-2015.pdf
(accessed 12 February 2019).
[98]
National Consumer Credit Protection Amendment (Small Amount Credit
Contract and Consumer Lease Reforms) Bill 2017 Exposure Draft Explanatory
Materials, p. 9.
[99]
National Consumer Credit Protection Amendment (Small Amount Credit
Contract and Consumer Lease Reforms) Bill 2017 Exposure Draft Explanatory
Materials, p. 25.
[100] National Consumer Credit
Protection Amendment (Small Amount Credit Contract and Consumer Lease Reforms) Bill
2017 Exposure Draft Explanatory Materials, p. 41.
[101] National Consumer Credit
Protection Amendment (Small Amount Credit Contract and Consumer Lease Reforms)
Bill 2017 Exposure Draft Explanatory Materials, p. 49.
[102] National Consumer Credit
Protection Amendment (Small Amount Credit Contract and Consumer Lease Reforms)
Bill 2017 Exposure Draft Explanatory Materials, p. 7.
[103] The Treasury Laws Amendment
(Design and Distribution Obligations and Product Intervention Powers) Bill 2018.
[104] ASIC, Submission 21,
pp. 20–21, p. 26, p. 30.
[105] ASIC, Submission 21,
p. 23.
[106] Mr Michael Saadat, Senior
Executive Leader, Deposit Takers, Credit and Insurers, Australian Securities
and Investments Commission, Committee Hansard, 24 January 2019, p. 12.
[107] AFCA, Submission 58,
p. 4.
[108] AFSA, Committee Hansard,
24 January 2019, p. 4.
[109] Consumer Action Law Centre, Submission
37, p. 5.
[110] Dr Paul Harrison, , Committee
Hansard, 22 January 2019, p. 1.
[111] For example, Anglicare
Tasmania, Submission 7, p. 6; Salvation Army, Submission 9, p. 5;
Care Inc, Submission 11, pp. 2–3; Financial Counsellors Association of
NSW Inc, Submission 13, p. 2, p. 4; ASIC, Submission 21, p. 4;
Queensland Council of Social Service, Submission 15, p. 14;
Consumer Action Law Centre, Submission 37, p. 5; Legal Aid Queensland, Submission
3, p. 13; UnitingCare Australia, Submission 49, p. 6.
[112] The Australian Finance
Industry Association, Submission 8, p. 3-4.
[113] CHERPA, Submission 251. pp.
4–6.
[114] Mr Robert Bryant, Chairman,
National Credit Providers Association, Committee Hansard, 12 December
2018, p. 17.
[115] National Credit Providers
Association, Submission 51, pp. 16–19; see also evidence of
Mr Michael Rudd, Director, National Credit Providers Association, Committee
Hansard, 12 December 2018, pp.19–20.
[116] See, for example, the
evidence of Mr Sam Budiselik, Interim Chief Executive Officer, Cash Converters
International Ltd, Committee Hansard, 12 December 2018, pp. 7–10.
[117] Mr Michael Saadat, Senior Executive
Leader, Deposit Takers, Credit and Insurers, Australian Securities and
Investments Commission, Committee Hansard, 24 January 2019, p. 13.
[118] Mr Gerard Brody, Chief
Executive Officer, Consumer Action Law Centre, Committee Hansard,
12 December 2018, p. 23.
[119] Ms Miranda Nagy, Principal
Lawyer, Maurice Blackburn Lawyers, Committee Hansard, 12 December
2018, p. 33.
Chapter 4 - Debt management
[1]
ASIC, Submission 21, p. 27.
[2]
Mr David Bergman, National Manager, Insolvency and Trustee services,
Australian Financial Security Authority, Committee Hansard, 24 January
2019, p. 3.
[3]
ASIC, Report 426 Paying to get out of debt or clear your record: the
promise of debt management firms, January 2016, p. 4, https://download.asic.gov.au/media/3515432/rep465-published-21-january-2016.pdf
(accessed 14 February 2019).
[4]
ASIC, Submission 21, p. 28.
[5]
ASIC, Report 426 Paying to get out of debt or clear your record: the
promise of debt management firms, January 2016, p. 5.
[6]
Consumer Action Law Centre, Submission 37, p. 22.
[7]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 2.
[8]
Mr David Bergman, National Manager, Insolvency and Trustee services,
Australian Financial Security Authority, Committee Hansard, 24 January
2019, p. 3.
[9]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 2.
[10]
See, for example, Good Shepherd Microfinance, Submission 50, [p.
6]; Salvation Army, Submission 9 pp. 12–16; Legal Aid Queensland Submission
3, pp. 11–12; Mr David Locke, Chief Ombudsman and Chief Executive Officer,
AFCA, Committee Hansard, 24 January 2019, p. 2.
[11]
Legal Aid Queensland Submission 3, p. 11.
[12]
Ms Karen Cox, Chief Executive Officer, Financial Rights Legal Centre, Committee
Hansard, 12 December 2018, p. 27.
[13]
Mr Gerard Brody, Chief Executive Officer, Consumer Action Law Centre, Committee
Hansard, 12 December 2018, p. 26.
[14]
Salvation Army, Submission 9, p. 12: Consumer Action Law Centre, Submission
37, p. 26.
[15]
Salvation Army, Submission 9, p. 13.
[16]
Ms Karen Cox, Chief Executive Officer, Financial Rights Legal Centre, Committee
Hansard, 12 December 2018, p. 32.
[17]
ASIC, Submission 21, p. 28.
[18]
ASIC, Submission 21, p. 27.
[19]
Henry, Committee Hansard, 12 December 2018, p. 24.
[20]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 9.
[21]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 9.
[22]
Mr Paul Shaw, National Manager, Regulation and Enforcement, Australian
Financial Security Authority, Committee Hansard, 24 January 2019, p. 7.
[23]
AFSA, Submission 4, p. 3.
[24]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 9.
[25]
Ms Karen Cox, Chief Executive Officer, Financial Rights Legal Centre, Committee
Hansard, 12 December 2018, p. 26.
[26]
Legal Aid Queensland, Submission 3, p. 11.
[27]
Mr Gerard Brody, Chief Executive Officer, Consumer Action Law Centre, Committee
Hansard, 12 December 2018, p. 25.
[28]
ASIC, Submission 21, p. 28.
[29]
AFSA, Submission 4, p. 3.
[30]
Mr Gerard Brody, Chief Executive Officer, Consumer Action Law Centre, Committee
Hansard, 12 December 2018, p. 27.
[31]
Ms Karen Cox, Chief Executive Officer, Financial Rights Legal Centre, Committee
Hansard, 12 December 2018, p. 27, p. 28.
[32]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 7.
[33]
ASIC, Report 426 Paying to get out of debt or clear your record: the
promise of debt management firms, January 2016, p. 5.
[34]
Mr Gerard Brody, Chief Executive Officer, Consumer Action Law Centre, Committee
Hansard, 12 December 2018, p. 23.
[35]
Mr David Bergman, National Manager, Insolvency and Trustee Services,
Australian Financial Security Authority, Committee Hansard, 24 January
2019, p. 3.
[36]
Mr Paul Shaw, National Manager, Regulation and Enforcement, Australian
Financial Security Authority, Committee Hansard, 24 January 2019, p. 3.
[37]
Consumer Action Law Centre, Submission 37, p. 5, p. 33.
[38]
Treasury Laws Amendment (Design and Distribution Obligations and Product
Intervention Powers) Bill 2018.
[39]
ASIC, qon 1, Additional Information, 5 February 2019.
[40]
AFCA, Submission 58, p. 4.
[41]
For example, Legal Aid Queensland, Submission 3, p. 13.
[42]
Consumer Action Law Centre, Submission 37, p. 5, pp. 30–32.
[43]
Mr Paul Shaw, National Manager, Regulation and Enforcement, Australian
Financial Security Authority, Committee Hansard, 24 January 2019, p. 3;
Australian Restructuring Insolvency and Turnaround Association, Submission
12, p. 1.
Chapter 5 - Buy now pay later
[1]
ASIC Review of buy now pay later arrangements, Report 600,
December 2018, p. 17.
[2]
Good Shepherd Microfinance, Submission 50, [p. 4].
[3]
ASIC Review of buy now pay later arrangements, Report 600,
December 2018, p. 25.
[4]
Afterpay, Submission 26, pp. 4–5.
[5]
Zip Co Ltd, Submission 18, [p. 2].
[6]
Mr Richard Wood, Credit Manager, Good Shepherd Microfinance, Committee
Hansard, 12 December 2018, p. 41.
[7]
Ms Rebecca James, Chief Executive Officer, Flexigroup Limited, Committee
Hansard, 22 January 2019, pp. 34–5.
[8]
Dr Paul Harrison, Director, Centre for Employee and Consumer Wellbeing,
Deakin University, Committee Hansard, 22 January 2019, p. 5, p. 6.
[9]
National Online Retailers Association (NORA), Submission 19, p. 1.
[10]
Mr Larry Diamond, Co-Founder and Chief Executive Officer, Zip.co, Committee
Hansard, 22 January 2019, p. 9.
[11]
Mr Peter Gray, Co-Founder and Chief Operations Officer, Zip.co, Committee
Hansard, 22 January 2019, p. 12; also Mr Nick Molnar, Chief Executive
Officer and Co-Founder, Afterpay, Committee Hansard, 22 January
2019, p. 11.
[12]
Mr Michael Saadat, Senior Executive Leader, Deposit Takers, Credit and
Insurers, ASIC, Committee Hansard, 24 January 2019, p. 15.
[13]
Mr Paul Holmes, Senior Lawyer, Civil Justice Services (Consumer
Protection), Legal Aid Queensland, Committee Hansard, 22 January
2019, p. 27.
[14]
Mr Michael Saadat, Senior Executive Leader, Deposit Takers, Credit and
Insurers, ASIC, Committee Hansard, 24 January 2019, p. 14.
[15]
Mr Larry Diamond, Co-Founder and Chief Executive Officer, Zip.co, Committee
Hansard, 22 January 2019, p. 10.
[16]
Mr Nick Molnar, Chief Executive Officer and Co-Founder, Afterpay, Committee
Hansard, 22 January 2019, p. 10.
[17]
Mr Richard Wood, Credit Manager, Good Shepherd Microfinance, Committee
Hansard, 12 December 2018, p. 38.
[18]
ASIC, Review of buy now pay later arrangements: Report 600,
November 2018, pp. 10–12.
[19]
See, for example, Consumer Credit Law Centre SA, Submission 33, pp.
6–7; [name withheld] Submission 45, p. 1; [name withheld] Submission
48, p.1; National Credit Providers Association, Submission 51, p.
20.
[20]
Mr Richard Wood, Credit Manager, Good Shepherd Microfinance, Committee
Hansard, 12 December 2018, p. 41.
[21]
Good Shepherd Microfinance, Submission 50, [p. 5].
[22] Care Inc, Submission
11, p. 4.
[23] Mr Benjamin
Paris, Non-Executive Director, Personal Insolvency Professionals Association, Committee
Hansard, 12 December 2018, p. 47.
[24] Mr Nick
Molnar, Chief Executive Officer and Co-Founder, Afterpay, Committee Hansard,
22 January 2019, p. 11.
[25] Mr Larry
Diamond, Co-Founder and Chief Executive Officer, Zip.co, Committee Hansard,
22 January 2019, p. 9.
[26] Mr Paul
Holmes, Senior Lawyer, Civil Justice Services (Consumer Protection), Legal Aid
Queensland, Committee Hansard, 22 January 2019, p. 27.
[27] Dr Paul
Harrison, Director, Centre for Employee and Consumer Wellbeing, Deakin
University, Committee Hansard, 22 January 2019, pp. 6–7.
[28] Dr Paul
Harrison, Director, Centre for Employee and Consumer Wellbeing, Deakin
University, Committee Hansard, 22 January 2019, pp. 2–3.
[29] Dr Paul
Harrison, Director, Centre for Employee and Consumer Wellbeing, Deakin
University, Committee Hansard, 22 January 2019, p. 3.
[30] Ms Corinne
Proske, General Manager, Retail and Online, Good Shepherd Microfinance, Committee
Hansard, 12 December 2018, p. 42.
[31]
Mr Michael Saadat, Senior Executive Leader, Deposit Takers, Credit and
Insurers, ASIC, Committee Hansard, 24 January 2019, p. 13.
[32]
ASIC, Submission 21, p. 19.
[33]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, Australian
Financial Complaints Authority, Committee Hansard, 24 January 2019,
p. 2.
[34]
Choice, Submission 22, p. 2.
[35] Mr Michael
Saadat, Senior Executive Leader, Deposit Takers, Credit and Insurers, ASIC, Committee
Hansard, 24 January 2019, p. 15.
[36] Mr Greg
Kirk, Senior Executive Leader, Strategy Group, ASIC, Committee Hansard,
24 January 2019, p. 15.
[37] Ms Kate
O'Rourke, Principal Adviser, Consumer and Corporations Policy Division, Markets
Group, Department of the Treasury, Committee Hansard, 24 January
2019, p. 32.
[38] Mr Peter
Gray, Co-Founder and Chief Operations Officer, Zip.co, Committee Hansard,
22 January 2019, p. 16; Mr Anthony Eisen, Executive Chairman and
Co-Founder, Afterpay, Committee Hansard, 22 January 2019, p. 15.
[39] Consumer
Action Law Centre, Submission 37, p. 5; Choice, Submission 22,
p.2.
[40] Mr Paul
Holmes, Senior Lawyer, Civil Justice Services (Consumer Protection), Legal Aid
Queensland, Committee Hansard, 22 January 2019, p. 27.
[41] Mr Larry
Diamond, Co-Founder and Chief Executive Officer, Zip.co, Committee Hansard,
22 January 2019, p. 10.
[42] Mr Peter
Gray, Co-Founder and Chief Operations Officer, Zip.co, Committee Hansard,
22 January 2019, p. 12.
[43] Mr Nick
Molnar, Chief Executive Officer and Co-Founder, Afterpay, Committee Hansard,
22 January 2019, p. 11.
[44] Mr Peter
Gray, Co-Founder and Chief Operations Officer, Zip.co, Committee Hansard,
22 January 2019, p. 15.
[45] Ms Rebecca
James, Chief Executive Officer, Flexigroup Limited, Committee Hansard,
22 January 2019, p. 34.
[46] Dr Paul
Harrison, Director, Centre for Employee and Consumer Wellbeing, Deakin
University, Committee Hansard, 22 January 2019, p. 2.
Chapter 6 - Alternatives for consumers in financial difficulties
[1]
Australian Financial Complaints Authority, About AFCA: what we do,
https://www.afca.org.au/about-afca/
(accessed 4 February 2019).
[2]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 2.
[3]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 2.
[4]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 2.
[5]
Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry, Final Report, vol. 1, pp. 491–2.
[6]
Ms Roberts Grealish, Senior Solicitor, Consumer Credit Legal Service
(WA) Inc, Committee Hansard, 12 December 2018, p. 22.
[7]
Salvation Army, Submission 9, pp. 5–6.
[8]
Consumer Action Law Centre, Submission 37, p. 36.
[9]
Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry, Final Report, vol. 1, p. 492.
[10]
Ms Roberts Grealish, Senior Solicitor, Consumer Credit Legal Service (WA)
Inc, Committee Hansard, 12 December 2018, p. 22.
[11]
Care Inc, Submission 11, p. 7.
[12]
See, for example, Queensland Council of Social Service, Submission 15;
Legal Aid Queensland, Submission 3; Professor Ian Ramsay, Associate
Professor Paul Ali and Ms Lucinda O'Brien, Submission 17.
[13]
Ms Fiona Guthrie, Chief Executive Officer, Financial Counselling
Australia, Committee Hansard, 12 December 2018, p. 1.
[14]
Mrs Sandra Blake, Financial Counsellor, Financial Counselling Australia, Committee
Hansard, 12 December 2018, p. 2.
[15]
Salvation Army, Submission 9, p. 21.
[16]
Mr Tony Devlin, National Manager, Moneycare Program, The Salvation Army
Australia, Committee Hansard, 22 January 2019, p. 22.
[17]
Financial Counsellors' Association of New South Wales, Submission 13,
pp. 4–5.
[18]
Mr David Locke, Chief Ombudsman and Chief Executive Officer, AFCA, Committee
Hansard, 24 January 2019, p. 2.
[19]
UnitingCare Australia, Submission 49, p. 7.
[20]
Australian Financial Security Authority, Submission 4, p. 5.
[21]
Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry, Final Report, vol. 1, p. 492.
[22]
Department of Social Services, Submission 63, pp. 4–5.
[23]
Ms Elizabeth Heferen-Webb, Deputy Secretary, Department of Social
Services, Committee Hansard, 24 January 2019, p. 25.
[24]
Consumer Action Law Centre and Financial Rights Legal Centre, Submission
42, p. 2.
[25]
Consumer Action Law Centre and Financial Rights Legal Centre, Submission
42, p. 3, p. 4.
[26]
Mr Gerard Brody, Chief Executive Officer, Consumer Action Law Centre, Committee
Hansard, 12 December 2018, p. 24.
[27]
Mr Gerard Brody, Chief Executive Officer, Consumer Action Law Centre, Committee
Hansard, 12 December 2018, p. 28.
[28]
Consumer Action Law Centre and Financial Rights Legal Centre, Submission
42, p. 4; see also support from Ms Roberta Grealish, Senior Solicitor,
Consumer Credit Legal Service (WA) Inc, Committee Hansard, 12 December
2018, p. 22, and support for this kind of model from Mr David Locke, Chief
Ombudsman and Chief Executive Officer, AFCA, Committee Hansard, 24
January 2019, p. 2.
[29]
Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry, Final Report, vol. 1, p. 493.
[30]
Ms Carly Hyde, Policy Lead, Queensland Council of Social Service, Committee
Hansard, 22 January 2019, p. 31.
[31]
Mr Paul Holmes, Senior Lawyer, Civil Justice Services (Consumer
Protection), Legal Aid Queensland, Committee Hansard, 22 January 2019,
p. 26.
[32]
National Credit Providers Association, Submission 51, Attachment 2,
p. 2.
[33]
Good Shepherd Microfinance, Submission 50, [p. 1].
[34]
Ms Corinne Proske, General Manager, Retail and Online, Good Shepherd
Microfinance, Committee Hansard, 12 December 2018, p. 38.
[35]
Ms Carly Hyde, Policy Lead, Queensland Council of Social Service, Committee
Hansard, 22 January 2019, p. 31.
[36]
Ms Rose McGrath, Senior Policy Officer, Queensland Council of Social
Service, Committee Hansard, 22 January 2019, p. 31.
[37]
Mr Paul Holmes, Senior Lawyer, Civil Justice Services (Consumer
Protection), Legal Aid Queensland, Committee Hansard, 22 January 2019,
p. 28.
[38]
Ms Rose McGrath, Senior Policy Officer, Queensland Council of Social
Service, Committee Hansard, 22 January 2019, p. 31.
Coalition Senators Dissenting Report
[1]
Michael Koziol, 'Labor won't fight any Fair Work Commission decision to
cut Sunday penalty rates: Bill Shorten', The Sydney Morning Herald, 21
April 2016, https://www.smh.com.au/politics/federal/labor-wont-fight-any-fair-work-commission-decision-to-cut-sunday-penalty-rates-bill-shorten-20160421-gobpo5.html
(accessed 22 February 2019).
[2]
Fair Work Amendment (Restoring Penalty Rates) Bill 2018, available at: https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6135
(accessed 22 February 2019).
[3]
Brendan Coates, 'Labor and the Greens are standing in the way of cheaper
super', ABC News, 19 February 2019, https://www.abc.net.au/news/2019-02-19/labor-greens-standing-in-way-cheaper-superannuation/10822876
(accessed 22 February 2019).