Welcome to the Consumer Action Law Centre, a campaign-focused consumer advocacy, litigation & policy organisation based in Melbourne, Australia.
Latest news
Scam alert:
We’ve had reports of scammers falsely using Consumer Action's name to obtain money and banking details from their victims. Please be aware that Consumer Action is not responsible for these calls and would never contact anyone requesting money or bank details. For more information about scams please refer to our Fact Sheet.
Our full Privacy Statement is available here.
May 2012
17/05: Payday lender’s advertising potentially misleading or in breach of consumer credit laws, says Consumer Action
A Money3 advertisement boasting that no loan application will be refused has raised the ire of the Consumer Action Law Centre which has asked the Australian Securities and Investment Commission (ASIC) to investigate. Consumer Action says the advert for auto finance, which reads "we say yes! no application refused" (reproduced below), suggests Money3 is either ignoring its legal obligation to assess each customer’s financial situation before offering a loan, or that it is potentially misleading customers to get them through the door. Read our full media release here.
15/05: Submission to the Productivity Commission’s Regulatory Impact Assessment benchmarking study
This submission argues that the Regulatory Impact Assessment process could be improved if government agencies had more guidance on how to assess the benefits of regulation and the less tangible impacts that regulation may have on consumers.
10/5: Linked credit case could cast doubt on more NAB student loans
The Consumer Action Law Centre has lodged a complaint with the Financial Ombudsman Service (FOS) against the National Australia Bank (NAB) and is seeking to have its client’s NAB student loan terminated. A ruling in favour of the borrower could have flow on effects both for the NAB and customers who took out similar loans, and may result in the NAB terminating and/or reimbursing amounts paid under such loans. Read our full media release here.
4/5: Submission to Australian Energy Market Commission, Market Review, Power of Choice (Stage 3 DSP Review)
This review is about “enabling consumers to make informed choices about the way they use electricity can help achieve efficient investment”. Consumer Action agrees that there is opportunities to improve consumer participation in electricity markets, and that there may be system-wide benefits if consumers can shift their consumption away from times of peak demand. However, this submission argues that consumers can be empowered through non-price based solutions (such as Direct Load Control and education campaigns) and that there are real risks of social harm that can result from Time of Use pricing for domestic consumers.
April 2012
30/4: New Report—Profiling for Profit
Consumer Action, together with co-authors from Deakin University, has released Profiling for Profit: A Report on Target Marketing and Profiling Practices in the Credit Industry. Featured in The Sunday Age, this report explains how many businesses make significant investments to purchase or develop customer relationship management systems. These systems use cutting-edge technology to help businesses mine and use customer data.
The report finds that there is limited public information about these systems, but does provide some indication about their extent, purpose and their use. Consumer Action believes that recognising that lenders use customer information, and highly sophisticated systems, to target their market strategies, is an important first step towards ensuring that these practices are taken into account in the development of consumer policy and law reform.
26/4: Private education and training: avoiding common problems
Common themes emerging in consumer complaints about some private colleges and training institutions has prompted the Consumer Action Law Centre to publish a guide about common problems, how to avoid them and where to get help if you have a complaint.
Private education and training: avoiding common problems identifies some of the most complained about issues, offers tips on how to avoid problems, and details on where to get further advice. Read our full media release here.
24/4: Revised payday lending Bill puts profits before people
The Consumer Action Law Centre has condemned the Federal Government’s proposed amendments to its Credit Enhancements Bill, calling them a cave in to industry lobbying and lamenting a lost opportunity to protect thousands of financially vulnerable Australians.
Consumer Action said that, although the Government was dressing these changes up as a compromise, there was no hiding the fact that the new proposal doubles the amount lenders can charge compared to what the Government originally proposed. This is devastating news for the over 50 consumer and community agencies that pledged their public support for the original reforms—and worse news for our clients. Read the full media release here.
16/4: Consumer Action calls on Energy Market Commission to ease energy bills by proceeding with rule-change
In a submission lodged today, the Consumer Action Law Centre called for the Australian Energy Market Commission to proceed with an energy rule change that would put downward pressure on household energy bills. Read our media release here or the full submission here.
10/4: Retirement village contracts confusing for consumers, says consumer group:
The Consumer Action Law Centre says a case in which it is assisting an elderly retirement village resident with her dispute before the Victorian Civil and Administrative Tribunal (VCAT) demonstrates the overly complex nature of some retirement village contracts. Read the full release here.
5/4: Our second edition (for 2012) of ConsumerInterAction, our regular e-bulletin, is now available. You can download it here.
5/4: Energy retailers urged to end to door-to-door sales
The Consumer Action Law Centre has challenged Australia's energy retailers to put an end to door-to-door energy sales. The Centre issued the challenge on the back of new research showing 77 per cent of Australians have negative views of door-to-door sales. The research also documents concerns that this type of marketing places undue pressure on consumers and often results in them signing up to inferior deals. Read our media release here.
Key findings of the research into consumer attitudes toward door to door selling are:
- 77% dislike door-to-door sales
- Only 3% have a generally positive opinion of door-to-door selling
- Consumers feel misled by in-home sales
- 56% of shoppers feel the greatest pressure to purchase when visited at home
Click here to read our report Door to door sales - Consumer views 2012.
3/4: Submission to Commonwealth Government Flood Insurance consultation paper
Consumer Action has made a joint submission with three other organisations to a Commonwealth Government consultation paper on flood insurance reform. We do not support the model proposed by Government in this consultation paper – that insurers would be required to offer flood cover in home and contents insurance policies but could allow consumers to opt out of that cover. We think this will create the result that the consumers who need flood cover the most will be the ones most likely to go without it. Instead, we have argued that the model proposed by the Natural Disaster Insurance Review in November 2011 is the best option. Under this model, insurers are required to offer flood insurance and consumers cannot opt out, but an affordability mechanism ensures that flood cover is affordable for everyone.
March 2012
28/3: Policy position—Water Pricing for Sustainable Household Consumption. Consumer Action has released this policy position on water pricing. While recognising the reality that water prices need to rise, an over-reliance on water pricing as a demand management tool will have unintended impacts for many consumers, and will particularly impact unfairly upon lower income households. Conventional economic analysis assumes that increasing water prices will result in households consuming less water. There are some fundamental problems with this assumption that must be addressed if pricing policies are to impact upon water demand.
27/3: Consumer Action welcomes clarification of legal position of Do Not Knock sticker
The Consumer Action Law Centre has welcomed the proceedings initiated by the Australian Competition and Consumer Commission against three energy retailers and their marketing companies in relation to door-to-door selling practices. Among other things, the case will seek clarification on whether a Do Not Knock sticker amounts to a request for salespeople to leave under the Australian Consumer Law. Read more here.
23/3: Consumer and welfare groups make eleventh hour bid to protect vulnerable Victorians
A group comprising consumer advocates and welfare agencies has made an eleventh hour plea to members of the Victorian Upper House, urging them to amend a bill which would allow metropolitan water businesses to charge interest on overdue accounts. Read our media release here.
19-25 March 2012: National Consumer Fraud Week
Have you ever received a phone call or SMS out of the blue, a phishy email or ‘lucky’ letter, an unknown knock at the door or a strange request from an online friend or admirer? National Consumer Fraud Week 2012 is all about raising awareness of scam delivery methods so that you can identify and slam a scam at the point of contact.
Scammers are increasingly sophisticated in how they deliver scams, taking advantage of new technology and communication methods to try and slip under your radar. Online platforms and mobile technology such as emails, social networking sites, smartphones and tablets make it easier to connect with people around the world and communicate in real time anonymously, privately or publicly. Unfortunately, scammers also take advantage of these benefits to target you.
Scammers are also not afraid to adopt a personal touch such as contacting you at home on your phone or at your door. They will try and push your buttons by playing on your emotions to evoke a sense of guilt, anxiety or fear. They also use slick tricks such as professional-looking websites or documents, and often pose as someone or an organisation that you know and trust.
Scammers will use any means to deliver a scam and get you to part with your money or personal details. If you receive a scam, slam it! Remember to:
press delete, throw it out, shut the door or just hang up.
20/3: Australian Government’s Regulatory Impact Assessment Process
Our submission to the review of the Australian Government’s Regulatory Impact Assessment Process argues that the RIA process needs to provide significantly more guidance for agencies to assess less tangible consumer detriment and the benefits of regulation, and so produce regulation which is more likely to be efficient and effective. Our submission can be read in its entirety here.
19/3: Federal Government’s Energy White Paper consultation
Consumer Action has made a substantial submission to the Federal Government’s Energy White Paper consultation. The Draft White Paper is largely directed to industry development and investment, but is silent on important consumer issues, such as improved regulatory processes, dealing with market failure in the retail market, or recognition and control of market power. Drawing on international experiences, this submission challenges the Government to produce a White Paper that addresses the range of social, economic and environmental issues that affect our country’s future energy needs.
16/3: World Consumer Rights Day 2012 - payday lending protest
Consumer Action used World Consumer Rights Day 2012 to highlight the damage caused by payday loans and Today Tonight were there to capture the action.
13/3: Gift Cards in the Australian Market
We’ve made a submission to the Commonwealth Consumer Affairs Advisory Council (CCAAC) in response to its Issues Paper, Gift Cards in the Australian Market. We’ve argued that consumers should be better protected when they purchase gift cards, and that retailers shouldn’t be able to impose expiry dates on cards. Read the full submission here.
08/03: Consumer group says Cash Converters’ processes need formal investigation
The Consumer Action Law Centre has asked the Australian Securities and Investment Commission (ASIC) to undertake a formal investigation into the internal dispute resolution processes of Cash Converters, Australia’s biggest payday lender. In its letter of complaint, Consumer Action asks ASIC to investigate whether Cash Converters breached the National Consumer Credit Protection Act 2009, saying that, based on the entities it has dealt with, it has grave concerns about Cash Converters’ approach to resolving disputes.
Co-CEO of Consumer Action, Catriona Lowe, said her organisation has provided advice to at least 100 consumers in relation to Cash Converters in the last two years, and has raised a number of complaints with Cash Converters entities directly. ‘Our concerns are based on cases we’ve seen, cases we’ve assisted with and cases we’ve run over the last two years—clients who’ve had genuine reasons to lodge a dispute with Cash Converters. Read the full media release here.
06/03: Ombudsman asked to consider lending practices of payday loan provider
Consumer Action is lodging another dispute against a high profile payday loan provider. The most recent dispute, being lodged on behalf of Ms Jane Bowyer with the Credit Ombudsman Service, alleges The Cash Store engaged in irresponsible lending practices, and asks whether it lent Ms Bowyer money she could not afford to repay.
When she got the loan in November 2011, Ms Bowyer was only receiving $671 from the Disability Support Pension, an amount that just covered her rent, utilities and other living expenses. Yet The Cash Store provided an amount of credit of approximately $300, which required her to repay $476.62 in the space of a fortnight. Repaying such a loan in full would have left Ms Bowyer with income of just $194.38 for two weeks, reducing her pension by around 71 per cent. Read the full media release here.
February 2012
27/02: ACCAN Grants Scheme now open with $250,000 in funding available
The 2012 Round of the ACCAN Grants Scheme has now opened with $250,000 in funding available for consumer-focused telecommunications research and consumer education or advocacy tools.
Now in its third year, the ACCAN Grants Scheme funds projects that help to work towards the organisation’s vision of affordable communications services for all Australians.
The Scheme carries an annual budget of $250,000. The 2012 Round will close 2nd April. Applicants are encouraged to apply for funding amounts appropriate to their project to a maximum of $60,000.
Examples of previous work include a joint project with Swinburne University, Central Land Council and the Centre for Appropriate Technology that undertook research into home internet models for remote Indigenous communities, which was subsequently awarded funding by the Australia Research Council (ARC); and a youth advocacy project led by the Brotherhood of St Lawrence.
There is scope for a wide variety of projects by community organisations, researchers, and individuals. Find out more at www.accan.org.au/grants.
22/02: Payday lending in the news 2011
Consumer Action recently compiled a compendium of news articles focusing on the payday lending industry and proposed consumer protections announced by the Federal Government in August 2011.
The Debt Trap campaign certainly featured heavily in the 2011 news, and we’ll work to keep the issue in the public eye until effective reforms are implemented.
Payday lending in the news 2011 is available here.
08/02: Consumer InterAction - Issue 1 of 2012
This month's Consumer InterAction articles include:
Consumers the losers as competition tribunal sides with power companies – yet again;
Community lawyers claim The Cash Store's holiday marketing is irresponsible;
eBay amends website after concerns were raised;
Your rights to return goods bought online; and
Report shows responsible lending laws aren’t enough to stop poor payday lending practices.
07/02: If it’s not right, use your rights – ACCC launches new awareness campaign
Since 1 January 2011, Australian consumers have the right to ask for a repair, replacement or refund if goods or services they’ve bought have problems. Now the Australian Competition and Consumer Commission (ACCC) has launched a campaign designed to promote awareness of these rights. Information on consumer rights and the ACCC campaign can be found by clicking the button below.
January 2012
20/01: Consumers the losers as competition tribunal sides with power companies – yet again
Victorian households are staring down the barrel of yet another electricity price hike after the Australian Competition Tribunal (ACT) overturned significant aspects of the ruling of the energy industry’s independent regulator.
The decision will put further strain on households, many of which are still feeling the pinch of the 1 January price rise, and makes what is supposed to be an essential service look increasingly like a luxury. The Consumer Action Law Centre (Consumer Action) and Consumer Utilities Advocacy Centre (CUAC) believe the decision continued the worrying trend of energy distribution companies successfully challenging a ruling from the independent Australian Energy Regulator (AER), which had sought to limit the amount of costs distributors could pass onto households. Read the full media release here.
17/01: VCAT cases will put Victoria’s new debt collection laws to the test
In what are believed to be two of the first cases to test Victoria's new ‘prohibited debt collection practices’, the Consumer Action Law Centre is helping two clients pursue legal cases against debt collection agencies in the Victorian Civil and Administrative Tribunal (VCAT). Both the cases, being brought against Australian Receivables Limited (ARL) and Baycorp Collections PDL (Australia) Pty Ltd (Baycorp Collections), allege that the agencies engaged in improper debt collecting conduct causing the claimants distress and humiliation.
Both cases will test the law which commenced at the start of 2011 which requires debt collectors to stop contacting a debtor once the debtor has requested in writing that it do so, unless the contact is by way of legal action or a genuine threat of legal action. Co-CEO of Consumer Action, Carolyn Bond, said Consumer Action had received an alarming number of complaints from consumers and financial counsellors alleging that debt collectors are ignoring requests to cease contact. Read the full media release here.
04/01: Your rights to return goods bought online—a scan of the return policies of online retailers in Australia
In January 2011, the Australian Government introduced legal protections for consumers buying goods or services called ‘consumer guarantees’. Consumer Guarantees ensure that you can get a refund, replacement or another remedy if goods or services you buy are faulty, unsafe, or don’t do what you reasonably expect them to do.
Consumer Action looked at the returns policies of 12 leading online businesses in December 2011 to find out if online retailers understood their obligations under the Consumer Guarantees and whether they reflect that understanding in the information they provide to consumers. What we found was pretty disappointing. In our assessment, only two of the 12 retailers we looked at had returns policies that were both compliant with the Consumer Guarantees and demonstrate good practice. Eight businesses, including some big names like Apple, Coles Online and Officeworks, had policies with many serious deficiencies. Read our findings here.
Note: Since reviewing the policies in December 2011, some of these companies have said that they will review or change their policies. Be aware that the problems we identify in this document may have already been addressed.
December 2011
21/12: Community lawyers claim The Cash Store's holiday marketing is irresponsible
A new advertisement from one of Australia’s leading payday loan brokers, The Cash Store, has raised the ire of two community legal centres, who fear the advert may result in many Victorian’s entering the New Year in a perilous financial position.
The flyer, delivered to households in the Mildura region, is a certificate that states the recipient is guaranteed a loan of ‘at least four hundred dollars’ and implies that the recipient has been pre-approved without any credit assessment - a practice which would fly in the face of responsible lending laws and undermine the payday lending industry’s claims to be lending responsibly. Read the full media release here and view a copy of the flyer here.
20/12: Work with us - our MoneyHelp financial counselling team are now looking for an intake worker to provide support 3 days per week. Download the position description here and apply via email to skye@consumeraction.org.au.
20/12: Hire car insurance is not what it seems, in fact, it’s often not insurance at all
As many Victorians head off on holidays, the Consumer Action Law Centre is warning consumers that hire car 'insurance' is not what seems. Indeed, it’s often not insurance at all but, rather, an indemnity which, in the case of an accident, may fall a long way short of what customers would need and could leave them deep in debt. Read the full media release here.
19/12: Contracting competition in the energy retail market results in lacklustre performance
A new report showing three leading energy retailers control almost 75 per cent of market share is bad news for Victorian households which are missing out on the financial benefits and service improvements that should stem from a successfully functioning competitive market. The Essential Services Commission’s (ESC) annual Energy Retailers Performance Review also revealed a growing number of households were being disconnected because of financial hardship rather than being offered assistance such a payment plan. Read the full media release here.
16/12: Public education the key to realising the benefits of Victoria’s smart meter rollout
Households can look forward to the long promised but often delayed benefits of smart meters following the Victorian Government’s decision to go ahead with the rollout, due to be completed by the end of 2013. The decision, along with the additional safeguards announced by the Hon. Michael O’Brien, Minister for Energy and Resources, means the Government can now turn its attention to educating the public about smart meters and clearing up some of the wide spread misconceptions about the program. Read the full media release here.
08/12: National unfair contract terms and consumer guarantees to be under the spotlight
The Australian Consumer Law’s unfair contract terms provisions are set to be tested in the Victorian Civil and Administrative Tribunal (VCAT) after the Consumer Action Law Centre issued proceedings against internship and work experience agency Borch Leeman on behalf of one of its clients. As well as the alleged unfair contract terms, Consumer Action’s client alleges that. Read the full media release here.
November 2011
28/11: Door-to-door salespeople meeting a sticky end
A national Do Not Knock campaign, aiming to put a stop to unwelcome, dishonest and intimidating door-to-door salespeople, has begun with the Consumer Action Law Centre launching a new interactive website www.donotknock.org.au.
For many Australians, particularly the elderly and people living on their own, being visited by salespeople can be an unnerving experience. For others, having valuable time at home with family and friends interrupted by pushy salespeople is simply an unwelcome distraction. But help is at hand. Read the full media release here.
23/11: ASIC payday lending report reveals fundamental non-compliance—a cap is needed
The Consumer Action Law Centre has welcomed the Australian Securities and Investment Commission’s (ASIC) report, Review of micro lenders' responsible lending conduct and disclosure obligations. Catriona Lowe Co-CEO of Consumer Action noted that ‘the report offers a frankly frightening insight into compliance that is and is not occurring at payday lending outlets. It also offers insight into the practical limitations on what ASIC is able do under responsible lending laws and supports our view that further regulation is needed to address consumer harm caused by payday lending.’ Read the full media release here.
23/11: Energy rules must change—consumers and big business agree
Consumer groups from around Australia have joined the Australian Energy Regulator (AER) and some of the nation’s biggest businesses in calling for reform to the process that sets electricity network prices, ahead of a forum on the energy network rule change review today in Brisbane. Read the full media release here.
18/11: Consumer Action welcomes ASIC investigation into broker responsible lending conduct
Consumer Action Law Centre has welcomed the release of the Australian Securities and Investment Commission's (ASIC) investigation into mortgage brokers' responsible lending conduct, focusing on ‘low doc’ loans. And while the Centre was pleased ASIC found that most brokers were aware of the new responsible lending obligations and that brokers' practices had changed since the introduction of the new laws, it said the report served as a reminder that there was some way to go to achieve compliance—particularly in some segments of in the industry. Read the full media release here.
18/11: Time for the Federal Opposition to show its hand on payday lending reforms
A coalition of consumer groups has called on the Federal Opposition to back the Government’s proposed national credit reforms, which are designed to protect payday loan borrowers from effective interest rates of over 600 per cent per annum and clean up an industry Joe Hockey described as ‘insidious’.
Consumer Action Law Centre, Consumer Credit Legal Centre and Financial Counselling Australia said the proposed cap on the costs of short term loans needs to be passed unamended to effectively protect vulnerable borrowers, but warned that lenders would continue to use their substantial financial resources to derail the passage of the legislation unless the Opposition got behind reforms. Read the full media release here.
16/11: West Australian financial counsellors send payday lenders a message
We’d like to congratulate the West Australian financial counselling community which gathered to protest the harm caused by payday lending outside Cash Converters’ Annual General Meeting today. The protest, which reinforced the need for greater consumer protection in the payday lending industry, was well attended by both financial counsellors and media outlets. See Perth Now’s video of the protest here.
14/11: Stronger response needed to ensure consumers are protected in times of disaster
The Consumer Action Law Centre has expressed disappointment with the Government’s initial response to the National Disaster Insurance Review (NDIR) Panel's report which it labelled as 'indecisive'. While the Centre welcomed moves towards a system which would see more Australians covered by flood insurance, it raised concerns about the proposed ‘opt out’ model and has lamented the lack of tangible interim measures in the Government’s response. Read our media release here.
11/11: Government warned that new credit card regulation may require running repairs
The Consumer Action Law Centre has welcomed the Federal Government’s ban on credit providers making unsolicited credit card limit increase offers to customers, but believes that ambiguity in the regulations governing the ban will see credit providers attempt to evade and undermine it. The Centre has also warned that the Government will need to respond quickly to any such attempt if it wants to maintain the integrity and effectiveness of the ban. Read our media release here.
07/11: Fair calls for all
Consumer Action has been working closely with the Fair Calls For All campaign that aims to have calls to 1800, 1300 and 13 numbers charged at a fair price from all phones.
Getting in touch with Centrelink, your bank or a legal, financial or other charity helpline shouldn’t cost a lot. But right now it can cost you up to $1.78 per minute to call 1800 ‘freecall’ and 13/1300 ‘local rate’ numbers from your mobile phone. If you called from a landline, these calls would be free or fixed at 30 cents.
After a year of community calls for action, the Australian Communications & Media Authority (ACMA) is proposing to regulate so that 1800 numbers will be free and 13/1300 numbers will cost about 30 cents to call from a mobile phone.
This is good news but there’s still work to do.
We know that parts of the telco industry are strongly resisting these reforms. It is important to explain why these changes will benefit Australian consumers, charities and businesses.
Tell the ACMA that you want Fair Calls For All at http://faircalls.good.do/action
04/11: Is eBay selling consumers short?
The Consumer Action Law Centre has taken its concerns about outdated and potentially misleading information on eBay.com.au to the Australian Competition and Consumer Commission (ACCC) after eBay International AG (eBay) failed to respond to the centre’s letter outlining its concerns. Read our media release here.
03/11: Consumer Action Law Centre releases its 2010-2011 Annual Report
Consumer Action’s 2010 – 2011 Annual Report is now available online and includes reports from Consumer Action’s Chief Executive Officers, Directors of the Legal Practice and Director of Policy and Campaigns. This year’s annual report also celebrates Consumer Action’s fifth birthday by looking back at the organisations history and its most notable achievements. Read it here.
October 2011
31/10: Consumer Action’s submission to the Australian Securities and Investments Commission on advertising for financial products and services
We broadly support ASIC’s approach, including the principle that advertising should assist consumers make balanced decisions—not merely avoid being misleading or deceptive. We suggest that ASIC should be more prescriptive in relation to the marketing practices of funeral insurance and holiday time-share schemes due to poor advertising practices in those areas. Read the submission here.
28/10: Consumer Action's submissions on consumer credit reforms
Consumer Action has provided comment on two short discussion papers on the operation of recent consumer credit reforms. Read them here.
24/10: Consumer Action releases two new submissions
Consumer Action's submission to the Commonwealth Government’s review of the Australian Communications Consumer Action Network can be read here.
Consumer Action's submission to inquiries on the Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011, which looks at proposed amendments regarding high cost short term loans, consumer leases and other reforms, is available here.
19/10: Report into consumer credit insurance exposes dirty tactics
The Consumer Action Law Centre has responded to ASIC’s report into consumer credit insurance (CCI), by saying that it confirms two of its long held suspicions; that many lenders selling CCI are using underhand or pressure tactics to sell the product, and that the industry has failed to take proactive steps to address practices identified in a number of reports and investigations over the past 20 years. Read our media release here.
17/10: Payday lending practices challenged in court
The lending practices of Australian’s biggest payday lender, Cash Converters, are being challenged in proceedings issued in the Victorian Magistrates Court. A disability support pensioner is alleging that two Cash Converters companies ('Cash Converters') breached the National Consumer Credit Protection Act 2009 and the National Credit Code when it gave him at least 64 short-term loans over a three year period. Read our media release here.
12/10: Submission to Essential Services Commission's Compliance Policy Statement
Consumer Action has provided comments to the Essential Services Commission in relation to proposed amendments to its Compliance Policy, with a specific focus on the plan to remove guidelines around wrongful disconnection payments to an internal administrative procedures document. Consumer Action is concerned that these guidelines should be in the Wrongful Disconnection Operating Procedures or at minimum be retained in the Compliance Policy, ensuring that they remain transparent and public.Read the submission here.
September 2011
21/09: New website delivers the cold hard and sad facts about payday lending
A coalition of consumer and financial counselling organisations has launched a new website to ensure the hard truths are heard in the debate about the future of short term high cost loans - www.debttrap.org.au. The new website delivers the confronting facts about payday loans, busts myths currently being spread by payday lenders, and outlines safer credit options available to low income earners. Read out media release here.
16/09: Submission to the ESC’s Draft Decision on Retailers obligations to Customers in relation to disconnection and reconnection
Consumer Action has made a submission to the ESC’s Draft Decision on Retailers obligations to Customers in relation to disconnection and reconnection. While the issues paper sought to reduce retailer obligations, the Draft Decision has instead chosen to retain and in some places strengthen retailer obligations to more suitably address consumer needs in relation to being able to pay varying amounts under payment plans. One issue still requiring attention is the proposal to remove the retailer’s absolute obligation to the customer in terms of reconnection. We strongly believe that the retailer must retain its obligations to its customers, and any dealings with the distribution businesses in relation to disconnection/reconnection are a business to business arrangement.Read the submission here.
12/09: Barriers to fair network prices
A new report released by the Consumer Action Law Centre and the Consumer Utilities Advocacy Centre, shows electricity distribution companies are routinely challenging pricing determinations made by the Australian Energy Regulator, the independent organisation that sets distribution costs. The one sided nature of the appeals process means so far attempts to use it to increase distributors' profit margins have been very successful. The report is available here, and Consumer Action and the Consumer Utilities Advocacy Centre's joint media release can be read here.
09/09: More support for proposed payday lending reforms
More community groups and welfare agencies have signed up to our open letter to The Hon. Bill Shorten, in support of the proposed amendments to the National Consumer Credit Protection Act 2009 regulating small amount contracts. You can read the letter here.
08/09: Distribution Pricing Masterclass for Consumers
With energy prices rising, consumer organisations have been taking a keen interest in network distribution network charges, which typically account for around 40 per cent of a small consumer’s electricity bill. In August this year Consumer Action, together with the Consumer Utilities Advocacy Centre, with funding from the Consumer Advocacy Panel, convened a Distribution Pricing Masterclass for Consumers.
The Masterclass sought to build on the existing knowledge of consumer advocates and further enable them to proactively engage in the ongoing debate around the regulatory framework for distribution pricing. It featured a number of presentations from experts including: Dr John Tamblyn, Joanna Ifield from Ernst & Young, Marianne Lourey from ACIL Tasman, Bev Hughson, CUCA’s Jo Benvenuti and Catriona Lowe from Consumer Action.
07/09: Submission to AER’s Price Comparator Website Issues Paper
Consumer Action has made a submission to the Australian Energy Regulator's Price comparator website - Issues Paper. The submission largely supports the AER’s approach, and highlights the fact that comprehensive, clear and easily accessible consumer information is a fundamental precondition to effective competition. Read it here.
02/09: Broad support for proposed payday lending reforms
Community groups and welfare agencies have written an open letter of support for the proposed amendments to the National Consumer Credit Protection Act 2009 regulating small amount contracts. You can read the letter here.
02/09: Review of Debt Agreements under the Bankruptcy Act
Read Consumer Action's submission to Commonwealth Government’s review of Debt Agreements under the Bankruptcy Act here.
August 2011
31/08: Submission to AEMC Issues Paper—Power of Choice
Read Consumer Action's submission on AEMC issues paper—Power of Choice—giving consumers options in the way they use electricity here.
25/08: Government reforms offer a branch to consumers stuck in high cost short term lending quicksand
Consumer Action has responded to the Federal Government's proposed reforms to payday lending. Read our media release here.
23/08: Just Sign Here... A review of Victorian retail energy contract terms and conditions
Energy retail contracts have been put under the microscope in a report just released by the Consumer Action Law Centre. And while the report found that most contracts largely met their regulatory requirements, a lack of contract clarity, consistency and access to information, proved significant barriers to consumer understanding and effective competition.
Just sign here... looked at energy contracts from twelve energy retailers from 2008 and found that sections relating to consumer rights were confusing and unclear to consumer experts, let alone customers looking to make an informed choice about their energy provider. Read the report here.
19/08: What are smart meters and what will they mean for me?
Consumer Action has published a new fact sheet on the Victorian smart meter roll out. Read it here.
18/08:
National Consumer Credit Protection Amendment (Enhancements) Bill 2011
Read Consumer Action’s submission to Commonwealth Treasury regarding the National Consumer Credit Protection Amendment (Enhancements) Bill 2011, and draft credit card regulations here.
16/08:
Consumer Action has published its 2011/12 Policy & Campaigns Plan.
This plan, which sets out our policy and campaign priorities for the year, can be read here.
05/08:Jobseekers should know that unpaid trial work is unlawful
Two leading community legal centres have joined forces to warn jobseekers about the practices of some recruitment and job placement agencies that are directing clients into unpaid trial work, using the incentive that it may result in paid work down the track. In truth, this practice is unlawful, and is highly unlikely to result in paid employment.
The Consumer Action Law Centre, in conjunction with employment rights legal centre JobWatch, is advising jobseekers to avoid these types of unpaid placements, and warning those offering unpaid work that they are putting themselves and their businesses at risk of prosecution. Read out media release here.
July 2011
31/07: Consumer InterAction, Issue 4, 2011
Read the latest edition of Consumer Action's bi-monthly newsletter Consumer InterAction, Issue 4 of 2011, here.
22/07:ASIC grants a licence to 'misleading, deceptive and unconscionable' trader
In a move that has disappointed the Consumer Action Law Centre, ASIC has granted a consumer credit licence to a company whose conduct has been found to be misleading, deceptive and unconscionable.
The decision to grant DGTV1 Pty Ltd (which trades as Motor Finance Wizard) a credit licence raises a number of questions about the licensing process, and raises the question what does a lender have to do to be denied a licence? Read our media release.
20/7:
Telecommunications—Reconnecting the Customer
Consumer Action has welcomed the proposals in ACMA’s Reconnecting the Customer Inquiry Draft Report to improve customer service standards for telecommunications consumers. We’ve also called for broader reform to telecommunications legislation to make consumer protection its focus. Read our submission.
13/7: Smart Meters Regulatory Review
Read Consumer Action's submission to the Essential Services Commission on the Smart Meters Regulatory Review here.
June 2011
24/6: Victorian Taxi Industry Inquiry
In a submission into the Victorian Taxi Industry Inquiry, Consumer Action has called for the Public Transport Ombudsman to have jurisdiction for complaints about taxi services. Read our submission.
24/6: New energy sales self-regulation scheme fundamentally flawed
Consumer Action Law Centre has today warned that a new self-regulatory approach for door-to-door sales of energy marketing is unlikely to reduce consumer detriment caused by widespread poor practices in the industry. Read our media release.
22/6: Mission Incomplete: a snapshot of consumer experiences of short-term loans post the national consumer credit reforms
Exorbitant effective interest rates on short term loans, upwards of 400 per cent, continue to put the pinch on vulnerable Australians despite the introduction of responsible lending laws in 2010.
Mission Incomplete, a new report released by the Consumer Action Law Centre, offers a snapshot into the experiences of twelve pay-day lending clients and details the high social and financial costs of an industry estimated to be worth $200 million. Read media release.
15/6: Cross-benchers urged to support a ban on mortgage early exit fees: A coalition of consumer groups, including CALC, is urging Parliament’s cross-benchers to support the Government’s proposed ban on mortgage early exit fees, a ban which will improve competition amongst lenders and shine a light on the less visible costs associated with some home loans. Read out media release.
May 2011
13/5: Motor Finance Wizard: Consumer Action’s legal case against one of the Motor Finance Wizard group of companies on behalf of a vulnerable consumer has been decided - and the Tribunal has formally found that the company's contract was unjust, its conduct was misleading and deceptive and unconscionable, and its entire leasing process was seriously flawed.
ASIC now has a serious question before it - whether the company be granted the credit licence it requires to continue trading. Read our media release.
April 2011
20/4: Concerns about proposed changes to Energy Retail Code. The Victorian Essential Services Commission recently released an issues paper proposing amendments to the Energy Retail Code in relation to retailers’ obligations to customers, in particular in regard to payment difficulties, instalment plan provisions and reconnections. In our submission we highlighted concerns that the proposed changes to the Code will, quite simply, diminish consumer protections and increase the obligations on consumers, and suggested that instead, what is necessary is proactive enforcement of compliance to the existing obligations under the Code by the Commission.
12/4: Work with us. CALC is looking for a consumer advocacy professional to lead our policy and campaigns team. Email skye@consumeraction.org.au for a position description.
5/4: Proposed insurance reforms challenge the industry to step up. The “Fair Go in Insurance” coalition welcome the Government’s proposed package of reforms to the insurance industry. Read our media release.
March 2011
18/3: Dell amends contract terms. Consumer Action's Co-CEO Carolyn Bond withdraws her Victorian Civil and Administrative Tribunal proceedings against computer giant Dell after the company removes misleading terms from its sales contract. Read our media release.
15/3: World Consumer Rights Day. Consumer Action marked World Consumer Rights Day with an event highlighting the unfair practices of Australia’s insurance industry. Members of Consumer Action and their Melbourne based partners in the coalition for A Fair Go in Insurance gathered in the Bourke Street Mall at 10.30am. The group all carried umbrellas as a symbol of something that can offer real protection, unlike many insurance contracts. See pictures of the event on our Fair Go In Insurance campaign page.
7/3: Insurance review. Consumer Action welcomes the government’s announcement that it will be conducting a review of insurance cover after many Australians found themselves without insurance or with insufficient cover to replace what was lost during the recent Queensland and Victorian floods. Read a copy of Minister Shorten’s media release.
Many of the issues to be reviewed relate to “A Fair Go in Insurance” – a series of recommendations proposing changes to the insurance industry made by a coalition of consumer advocacy and legal aid organisations.
7/3: National Consumer Fraud Week 7-13 March. Scammers do not stop at anything to target victims, including adopting a personal touch. Watch out for scammers – whether you are answering a phone call, opening mail, online chatting with friends, shopping or even looking for love.
Don’t let scammers into your life – protect your identity
Protect yourself against scammers
PROTECT YOUR IDENTITY - Your personal details are private and invaluable – keep them that way and away from scammers
DON’T RESPOND - Ignore suspicious emails, letters, phone calls or text messages – press ‘delete’, throw them out or just hang up
DON’T LET SCAMMERS PUSH YOUR BUTTONS - Scammers will play on your emotions to get what they want
RESIST THE PERSONAL TOUCH - Watch out for scammers posing as someone that you know and trust, or pretending to know you
Fighting fraud on the home front: we can all play a part.
Check out Scams: It’s Personal for more information on National Consumer Fraud Week, an initiative of the Australasian Consumer Fraud Taskforce.
Stay one step ahead of scammers. Visit the Australian Government’s SCAMwatch website to get the low‑down on scams that target Australian consumers and small business. You can find out how scams work, how to protect yourself, and what to do if you’ve been scammed.
CALC is a Partner of the Taskforce and urges you to protect yourself against scams.
February 2011
28/2: Work with us - CALC is now hiring for the following positions, click on the link for a position description:
Financial Counsellor - 4-6 month position
Litigation Solicitor - 9 month position
Finance Manager - Part time position
17/2: Future of Financial Advice. AusFIN, a unique network of Australian organisations, is calling on the financial advice industry to stop its attempts to derail reforms the Government has already committed to implement. All forms of conflicted remuneration – no matter what their label – should be banned and advisers and planners should have to ask their customers each year if they still want – and want to pay for – their adviser’s services. Read the AusFIN media release.
10/2: More hands on deck needed - Work with us. Our Moneyhelp team are currently recruiting for a part time Financial Counsellor. If you or anyone you know is interested please follow the links to find out more and apply.
1/2: Fair Go in Insurance. A coalition of consumer and insurance law experts today released a twelve point plan setting out the current problems with insurance in Australia in a bid to pressure the Government into securing some real actions ahead of its meeting with the insurance industry today. Read our media release.
January 2011
18/1: Electricity Distribution Prices. Victoria’s five monopoly electricity distributors are appealing the recent price decision made by the Australian Energy Regulator setting their prices for 2011-15, in a bid to charge Victorian consumers even more.
Consumer Action has joined with fellow consumer advocates CUAC to apply to the Australian Competition Tribunal for leave to intervene in the distributors’ appeals. Read our media release and find out more or leave comments on our blog.
December 2010
23/12: Electricity Meter verification. Consumer Action Law Centre has made a submission to the National Measurement Institute as part of their consultation, in support of their proposal to lift the exemption, under the National Measurement Act, for electricity meters to be verified. Read our submission.
23/12: Industry Codes. Consumer Action Law Centre has made a submission to the Australian Competition and Consumer Commission in relation to authorisation of Energy Assured Limited’s application to establish an industry code focusing on energy marketing practices. Our submission raises particular concern over whether the proposed guideline actually meets the requirements of an industry guideline and whether there will be any public benefit from its establishment. Read our submission.
16/12: Victorian energy market competition. It’s time for the Victorian Government and its energy industry watchdog, the Essential Services Commission, to take real action to help consumers switch and save on their energy bills, after the Commission’s yearly report on the industry released this morning showed that both energy bills and the number of Victorians in hardship is rising significantly. Read our media release.
6/12: Banking Competition. Consumer Action Law Centre has made a submission to the Senate inquiry into competition within the Australian banking sector, focusing on measures that would help Australian consumers themselves to drive competition within the sector. Read our submission.
5/12: Energy distributors seek bigger price rises. Victorians could be paying even more for their electricity over the next five years if the state's energy distributors succeed in challenging October's final price determination from the Australian Energy Regulator. Read our media release.
2/12: Banking reform. A new coalition seeking reform of Australia’s financial system was launched in Melbourne today. Consumer Action is pleased to be a member of the Australian Financial Integrity Network (AusFIN) - a unique and diverse group of Australian organisations that includes the ACTU, CHOICE, FSU, Industry Super Network, The Australia Institute, the Council of Small Business of Australia, AFCCRA and others. Read AusFIN’s Charter to see all our members and our key principles for the Australian financial system.