Royal Commissions, class-actions, first-hand accounts from consumers wronged by companies placing profits over service – the evidence continues to mount on the ongoing misconduct of credit, insurance and banking organisations across Australia. Now, the latest story is that ASIC is seeking feedback from stakeholders on proposed short-term credit and continuing credit contracts.
Published via the consultation paper entitled Product Intervention Orders: Short Term Credit and Continuing Credit Contracts, ASIC detail their proposition of utilising product intervention powers to curb consumer detriment, caused by those in the industries offering these contracts. This follows a previous intervention order placed on 13 September 2019 which tackled short term credit providers working with associated firms to combine administrative and management fees to over 1000% of the actual loan amount.
ASIC’s Ongoing Work to Fight Misconduct in the Short Term & Continuing Credit Industries
These measures are only part of ASIC’s ongoing work to address the predatory nature of short-term lending practices that prey on vulnerable customers in need of financial support. They are looking to further utilise their product intervention orders to prevent such products that include excessively high costs from being sold.
ASIC believes that if serious changes to these industries are not enforced, credit providers may begin to again offer the type of products described above that subvert the National Credit Code via associated partners hiking prices. The new proposals would:
- Outline all fees and charges related to obtaining credit and the associated interest to better clarify how they fall under the conditions of the contract
- Specify all fees and charges captured by the credit provider have been paid by a retail client
- Impose a cost cap on total fees capable of being charged under continuing contacts for retail clients in a low-income or unemployed status
Lending providers continue to attempt to circumvent ASIC’s previous orders, and so the public has been invited to offer their feedback on enacting intervention orders on short term credit and continuing credit products.
The due date for submissions is 21 January 2022.
Get My Refund Helps Victims Reclaim What Is Owed to Them
Should these proposals of product intervention orders from ASIC relating to short term credit & continuing credit contracts eventuate, it will give consumers currently locked in more power to not only end the agreement but perhaps even to make a claim for a refund.
Rather than trying to find and then wading through the documents yourself, Get My Refund exists solely to help victims seek justice and reclaim what is owed to you. Our industry specialists can help by investigating your unique situation and pursue the appropriate channels that help you to recover funds charged via junk products or unnecessary fees.
Start your claim today to receive support as soon as possible. For more information about our processes or proven track record at Get My Refund, please also feel encouraged to contact a member of our friendly team today by calling (02) 9156 1000. We look forward to working with you.
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