Why you should care about responsible lending laws

Money
48

The latest update from the Consumer Action Law Centre.

"XXXX,

We just wanted to give you an update on the campaign to save safe lending.

Last we heard, the Government was still trying to shore up numbers in the Senate to get the Bill to repeal responsible lending protections over the line. We all held our breaths during Budget week, as it was clear the Government had no intention of walking away from their reckless proposal, with the Bill appearing on the Senate papers.

However, just the other week, the Australian Financial Review reported that Senator Pauline Hanson’s One Nation party had rejected the Government’s plan to scrap safe lending laws, saying it would “drag Australia back to the horror days” when banks called all the shots.1

Then a week later, Senator Jacqui Lambie – who holds another of the key crossbench votes required to block the Bill in the Senate – also came out against the proposal saying she wouldn’t be “helping the boys’ club at the big end of town”.2

The loss of three critical votes could spell the end for the Government’s plans to axe safe lending.

This is a testament to everyone who has worked hard to maintain the pressure on our Parliamentarians, letting them know how important it is to keep these vital protections intact.

But it’s not over until it’s over. The Government is remaining steadfast in their commitment to repeal our safe lending laws, and we expect a renewed push from the Government to pass the Bill soon.

You can bet we’ll be keeping a close eye on the Bill over coming months, and will be in touch with ways you can take action to help stop it in its tracks.

Alycia
Consumer Action Law Centre

References
[1] Pauline Hanson rejects plan to scrap responsible lending laws, Australian Financial Review, 19 March 2021
[2] ‘The bill is done’ Jacqui Lambie on RLO repeal, The Adviser, 28 May 2021"

2 Likes
49

I can just see what could happen where it comes to PH and One Nation with support in the Senate.
Say Pauline, you are up for reelection in the Senate for QLD in 2022. How about you support some of our legislation, and we will put you high up on our how to vote preferences.
What say you?

1 Like
50

I’d leave that vision to those in Qld to sort out.
Having lived or worked in most corners, the following 2019 results provide all the answers.

51

Last Federal election, One nation failed to get a quota in their own right. They only got a Senate seat through preference flows. Roberts.
When PH was elected for a 6 year term it was a double dissolution senate election where the quota was half the normal. 7.7% versus 14.3%.
Last state election in QLD One Nation managed to retain the one seat they already held but suffered a 6.6% swing against them.
I would say PH without strong LNP preferences is doomed next Federal Senate election.

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52

What one hopes for and what everyone else votes for, the only certainties in life remain death and taxes. Winning the unloosable election is not one of them, hence all options remain open.

Making a stand on legislation that favours the big banks etc over the average consumer, PH’s base has much in common with those Trump harvested believing they were being ignored. Our local community is gold plated Qld LNP. Not even a need to distribute preferences last time. So much so that the air is fresh, with barely a hint of roast pork in it.

Parties preference to ensure the other team can’t succeed. The options are limited. Most of us know that. On policy there is often little difference. On principal it’s important John Howard’s so called battlers if disaffected by the sale on used holiday packages still have an option for real meat, IE other than …… shared porridge and raw greens. :wink:

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53

An update from the Consumer Action Law Centre regarding safe lending laws.

"It’s been a while since we’ve updated you. To be honest, it’s because there haven’t been any real updates. Week after week, we’ve been checking the Senate notice papers and there’s no sign of the Government’s responsible lending repeal bill.

At this stage, no news is good news – remember, the Government wanted this done and dusted by March this year. But we remain vigilant, because anything could happen between now and the Federal election.

In the meantime, we were wondering if you have a few minutes to help us out?

We’re using this time to take pause and reflect on our Save Safe Lending campaign. It was almost a year ago when the Government first announced the changes, and in response, the consumer advocacy sector swiftly leapt into action to quash the proposal.

Can you take four minutes to let us know how you feel the campaign is going?

TAKE THE SURVEY

Your support has been vital in the success of the campaign so far. We genuinely want to know what you think about the campaign. What’s been good? What can we change? Have you felt involved? Why did you first get involved?

If you have a few minutes to fill out the survey and let us know what you think has worked in the campaign so far and what we could do to make it even better, we’d really appreciate it.

Alycia
Consumer Action Law Centre"

And their latest newsletter which covers many consumer issues.

"Welcome to our eNewsletter for September which is a brief snapshot of what we have been doing in the last couple of months.

I’m very excited to share with you Consumer Action Law Centre’s refreshed Strategic Plan for 2021-2025. This plan re-commits the Centre to our vision of “A just marketplace, where people have power and business plays fair”, and sets out our purpose to make life easier for people experiencing vulnerability and disadvantage in Australia.

The plan is the result of substantial collaboration among Consumer Action’s board and staff team, including a number of workshops and sessions. We were very fortunate to be able to hold an in-person staff planning day in February ( image below ), which was central to shaping this plan.
It also draws on the feedback of colleagues, partners and stakeholders, primarily through our 2020 Stakeholder Survey.

The plan is accompanied by our updated Impact Framework, which how the Centre’s priorities create outcomes and impact for consumers and the community. Reflecting the Strategic Plan, this Framework sets out each of the Centre’s priorities, demonstrating how they are integrated, to enhance our pursuit for justice and fairness in the marketplace. The Strategic Plan also includes internal priorities to enhance systems, expertise and technology, as well as to continue to strengthen our internal culture.

I hope the Strategic Plan and Impact Framework will be of value to you in understanding our organisational approach and ambitions.

Read the Strategic Plan and Impact Framework.

–Gerard Brody, CEO

Our operating hours

Read our latest submissions

August 25, 2021 Review of the 2021 Australian Banking Association Code of Practice
August 23, 2021 ASIC consultation paper 346 -The hawking prohibition: Update to RG38
August 18, 2021 Finance executives who break the law must be held to account
August 18, 2021 Federal Government’s commitment to Compensation Scheme of Last Resort welcomed
August 12, 2021 Consumer leases must not be excluded from Government’s Design and Distribution Obligations regime
August 10, 2021 Victoria’s Embedded Networks Review: Our response to the draft recommendations
August 9, 2021 Our response to the Right to Repair Inquiry draft report
August 3, 2021 Victorian gas substitution roadmap consultation
July 12, 2021 Telstra Energy application for electricity and gas retail license raises questions
June 23, 2021 Regulating with consumer vulnerability in mind: Essential Services Commission’s draft strategy
June 16, 2021 2022 Victorian Default Offer

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54

Meanwhile, back at APRA.

55

Do you know who has any oversight over humm90 (part of the flexigroup, similar to afterpay)?

We joined Skye a few years back, as a business to potentially provide an afterpay service, and then decided it was a terrible business move and simply did not engage with them,again.

We recently received an email telling us we needed to go through training, as suppliers and this was a trigger to contact them to tell them we do not want to be associated with them. Contacting them, though, has been difficult. The 1300 number in their email and on their website does not exist. I looked them up, and found an alternative number and the call was bizarre. The company did not seem to understand that we were a business and told me they did not understand why we were contacting them, despite my explanation of the email, detailing that we were to channel any inquiries through the 1300 number. Ultimately, they put me on hold for 10 minutes and then cut me off. They did not want to discuss the 1300 number issue, at all.

I note that most reviews of the company are not good, and am relieved we have never made use of them for our clients. But I think they come across as very shonky. If someone was having problems paying and tried to contact them, this would be very difficult.
I just can’t seem to find anywhere to report this.

2 Likes
56

You could try APRA, ASIC, as they have the regulatory oversight of Financial Companies. AFCA might have some power with the financial company if they have been added to those that AFCA adjudicate on.

AFCA https://www.afca.org.au/

APRA https://www.apra.gov.au/

ASIC https://asic.gov.au/

1 Like
57

Thank you. That helps. I used AFCA, who gave an alternate number (complaints) and we are removing ourselves from any association.

2 Likes