Consumer Action Previous Updates
November 2010
8/11: Banking competition. We can sometimes forget that consumers aren’t just the passive beneficiaries of competition, they actively drive it. Competition can only work effectively when informed consumers can make good choices and switch to new suppliers when they spot a better deal.
Australian consumers won’t be able to get a fair deal from their banking providers until Australia has a genuinely competitive banking industry – which means it’s time for the Australian Government to step up and make it is easier for Australian consumers to drive that effective competition.
Consumer Action has released A Consumer Plan for Australian Banking that sets out six steps to help consumers drive banking competition, including:
# ending the failed industry bank account switching service and instead introducing genuinely easy bank account portability;
# following the UK lead to regulate mortgage exit fees properly, limiting them to direct costs and removing any loopholes for “deferred establishment fees”; and
# requiring lenders to give consumers a much simpler and easier one page of standardised information so they can shop around and compare deals before deciding which mortgage, credit card or other loan they want to take out.
1/11: Work with us. Consumer Action is currently recruiting for the following positions:
Policy Officer/Senior Policy Officer
If you or anyone you know is interested please follow the links to find out more and apply.
October 2010
29/10: Final electricity distribution pricing released. Consumer Action supports today’s announcement that Victorian households will be protected from the huge price increases the state’s electricity distributors had sought to impose on them over the next five years. But consumers may still end up paying more with distribution companies expected to challenge the decision in the Australian Competition Tribunal. Read our media release.
25/10: Shutting the Gates. Dr Paul Harrison's docu-drama about the tactics used to sell educational software is based on extensive interviews with customers and former salespeople of in-home sales companies. All of the dialogue in the film is verbatim, taken directly from interviews with these people, and from a sales company script.
The film was a finalist at the 2010 St Kilda Film Festival, and has been screened in Australia, the United Kingdom and Italy.
Watch Shutting the Gates.
8/10: GE Money to back Harvey Norman’s ‘interest free’ deals for five more years. Finance house GE Money has agreed to continue funding so-called ‘interest free’ credit terms for Harvey Norman customers.
Consumer Action is urging consumers not to get carried away in the lead up to Christmas and over-commit to any ‘interest free’ deals because if you can’t pay the whole amount off within the period agreed then THE INTEREST RATE IS HUGE – OFTEN AROUND 30%.
8/10: Dell reported to ACCC over its refund policy. Consumer Action has complained to the Australian Competition and Consumer Commission about Dell Computer Pty Ltd's refusal to provide a refund for faulty goods. Read our media release.
September 2010
27/9: NAB announces changes to credit cards. Consumer Action supports NAB’s moves to reduce the interest its credit card customers pay. From January 2011 the bank will apply all repayments to higher interest debts first and will revert all balance transfers to the lowest purchase rate at the end of the introductory period.
These are a good first step in adopting the Government’s promised credit card reforms and we congratulate NAB for taking the lead on these changes before they are required to do so by law. Other Australian banks and credit unions should make the same changes.
There is still a lot more to do to make credit cards fair for Australians, including on how interest rates are applied - cleaning up the unfair way “interest-free” periods are marketed and applied (or not applied) would be a good next step. We now look forward to the rest of the Government’s credit card reforms being introduced.
23/9: Westpac's debt collection practices the latest under the spotlight. Consumer Action Law Centre has made a formal complaint to the Australian Securities and Investments Commission about Westpac’s debt collection procedures for customers in financial hardship, only a week after revelations emerged of poor treatment by two of the other three major Australian banks. Read our media release.
14/9: Consumer Action launches new payday lending report. "Payday Loans? Helping hand or quicksand? An examination of high-cost short term lending in Australia, 2002-2010" was launched earlier today by the Rev. Tim Costello and Lisa Gray, Group Executive Personal Banking, from the NAB. Read our media release.
To find out more, follow us on Twitter and join our Save the Cap Facebook page.
13/9: Australian Consumer Affairs Minister missing. Consumer Action is asking the new Federal Government to clarify who is responsible for Consumer Affairs, after the Ministerial position was dropped only three years after its restoration.
In the Government’s response to the Australian consumer groups’ Election Platform, it had boasted that it had appointed Australia’s first Commonwealth Minister for Consumer Affairs and had undertaken the biggest reform of Australia’s consumer protection laws in a generation by enacting the Australian Consumer Law. However, it is currently unclear who has responsibility for ensuring the new laws are implemented and for driving a forward agenda in consumer policy.
August 2010
20/8: Voters should consider consumer policies. Differences in the major parties’ responses to the Australian consumer groups’ Election Platform should encourage voters to consider their future needs as consumers before making their decision on Saturday. Read our media release.
Read Labor's response.
Read the Coalition’s response.
Read the Greens' response.
10/8: Family holiday ruined. Consumer Action Law Centre has issued proceedings in the Victorian Civil and Administrative Tribunal on behalf of a client who alleges a holiday house owner wrongly kept her payment for her family's holiday. Read our media release.
9/8: Consumer Advocacy Election Platform. Australia’s consumer movement has called on the four major parties to respond to these key consumer issues before the election. Read our Election Platform.
9/8: Do Not Knock. If you have been trying to obtain some of our popular Do Not Knock stickers, these are now available once more. Please visit our Do Not Knock page to find out how to order the stickers.
3/8: Bushfire Royal Commission releases its report. Consumer Action was disappointed to see the Commission's report recommended the replacement of the fire services levy with a property-based levy.Read our media release.
2/8: Global Maths and English sued by disappointed parent. Consumer Action issues VCAT proceedings against Global Maths and English and their linked credit provider, Ardennan, alleging misleading and deceptive conduct in relation to the in-home sales of their educational software. Read our media release.
July 2010
29/7: Five cases launched against Edufin. Consumer Action issues multiple proceedings against the math software provider after parents who had spent thousands realised the company had signed them up to lease the products instead of buying them outright. Read our media release.
28/7: Scam uses bank fees class action to rip off consumers. Consumer Action urges consumers to be on the lookout for phone scammers making bogus claims of being able to recover thousands of dollars in overcharged bank fees on their behalf. Read our media release.
June 2010
24/6: New national consumer laws welcomed. Consumer Action welcomes the passage of the final Australian Consumer Law reforms through the Federal Parliament this afternoon. Having one national consumer law will ensure consistent protections for all Australian consumers.
We commend the bipartisan support shown for a late amendment to fix a loophole that would have removed high-pressure door-to-door and telemarketing sales protections if the consumer “invited” the salesperson to visit them in their home, even where the “invitation” was engineered by the seller - like when consumers give their contact details to the seller for another reason, such as a competition entry form filled out at a shopping centre.
Consumer Action strongly advocated for this change in our submission to the Senate inquiry into the Australian Consumer Law.
24/6: Bankruptcy law reform backdown. The Government’s backdown on its bankruptcy law reforms in the Senate this morning, made without warning and under the cover of the larger news of the leadership change, is a huge disappointment.
Raising the minimum debt for forced bankruptcy to only $5,000 instead of $10,000 simply will not stop the current problem – that unscrupulous creditors and bankruptcy trustees can misuse the bankruptcy system - instead of using legitimate and cheaper debt collection avenues - to collect small debts because by doing this additional funds can be sucked out of family homes to pay disproportionate trustee fees.
The Government at least made an additional, and sensible, change to the reform package by deferring any expansion in the ability to sign consumers up to controversial debt agreements until the full review of this issue is completed later this year.
For more information, see our joint submission on the original draft Bill and our submission to the Senate inquiry into the reforms.
11/6: Don’t unplug Australians from their electricity and gas services! Consumer representatives from across the country handed Fact Sheets to the Federal and State & Territory Energy Ministers as they entered their twice-yearly meeting in Melbourne to decide on the final form of the new national law for energy customer protections. Read the media release.
May 2010
27/5: New energy law penalties fall woefully short on consumer protections. Consumer Action questions whether the new laws provide energy companies with any real disincentive to stop breaching consumer laws. Read our media release.
21/5: Consumer warning following the collapse of Clive Peeters. Consumer Action warns customers to exercise caution before signing up to any interest free finance deals still being offered by the retailer and gives advice on what to do if they have already purchased items but not received them. Read our media release.
17/5: Consumer groups fear city water users could suffer under unified water laws. Melbournians could be facing water bill price rises that would only get bigger if new unfair and punitive measures for water companies to pursue payment are introduced. Read our media release.
12/5: Business loophole in new consumer lending laws could spell disaster for vulnerable borrowers. Consumer Action is warning consumers to avoid unregistered or unlicensed brokers and lenders after the Centre launched proceedings on behalf of a client who alleges her broker arranged finance for her on several occasions by having her declare that the loans were for business purposes – even though she claims he was aware the money was to pay for her gambling debts. Read our media release.
7/5: Support Law Week (17-23 May). As part of the festivities, there will be a theatrical homage to the Do Not Knock campaign. “Knock, Knock!” is a fun and engaging way to learn about the rules that protect consumers from misleading or aggressive door-to-door selling. Victoria Legal Aid will perform “Knock, Knock!” in Carlton on Monday the 17th and in Geelong on Tuesday the 18th of May. For a calendar of the week’s events click here.
For more information about your rights if a door-to-door sales person knocks at your door read our factsheet.
6/5: Join us in walking for justice. CALC is proud to be taking part in this year’s “Walk for Justice”, supporting the great work PILCH does in providing services to the Centre and its clients year after year. The walk starts on the steps of Parliament House at 7.30am on Monday, 17 May and, if you’d like to get involved, visit PILCH’s website for further information.
April 2010
27/4: ASIC fails to act on debt collection problems. The consumer watchdog is being urged to take action on more than 100 complaints from Consumer Action about poor debt collection practices that have gone unanswered for over a year. Read our media release.
8/4: MoneyHelp calls for better deal on rental housing. Our Victorian state-wide telephone and web financial counselling service says minimum standards to ensure all Victorian rental properties are safe, healthy and affordable to live in are urgently needed. Read our media release.
March 2010
26/3: “Shonky” finance brokers in Victoria. Consumer Action congratulates the Victorian government, the Opposition and the Greens for working together to amend the bill transferring consumer credit laws from the State to the Commonwealth, after a timing error threatened to leave a six month gap in consumer protections for broking services offered in Victoria. Read our media release.
17/3: Insurance industry out of touch. Consumer advocate Denis Nelthorpe appeared before the Bushfires Royal Commission today and argued there were many ways the insurance industry could tackle the problem of under-insurance besides removing the fire services levy. Read our media releaseand our joint submission to the Commission.
15/3: New report released. Consumer Action and Deakin University release a new report "Shutting the Gates: an analysis of the psychology of in-home sales of educational software" at today's National Consumer Congress. Read our media release.
15/3: Film premiere. Dr Paul Harrison of Deakin University launches his short film "Shutting the Gates" at the National Consumer Congress today.The film is a docu-drama based on actual case studies from a joint report "Shutting the Gates: an analysis of the psychology of in-home sales of educational software". See a trailer for the film.
1/3: Fraud Week. Fraud Week runs from 1 March to 7 March 2010. Read an article from the Australasian Consumer Fraud Taskforce's.
February 2010
22/2: Vacuum sales company tries to sweep damage under the rug. Consumer Action client sues S&J Universal Maintenance Systems after one of their sales staff destroyed an expensive silk rug during an in-home demonstration. Read our media release.
19/2: Legitimacy of car park fines could soon be decided. One of Consumer Action’s clients continues to pursue Care Park through VCAT in order to obtain a judgment on the legitimacy of private car park fines. Read our media release.
18/2: Distributors ask to add extra 14% to consumer electricity bills. Consumer Action Law Centre has made a submission to the Australian Energy Regulator (AER) after Victoria’s five electricity distributors provided forecasts estimating they would need Victorian customers to pay for more than $8.5 billion in expenses for the years 2011 to 2015, a whopping $3 billion increase on 2006-2010. Read our media release.
3/2: Insurance and the fire services levy. Consumer Action and other consumer groups want the insurance industry to tackle the real causes of under and non insurance in our community, instead of lobbying to remove the fire services levy which might jeopardise CFA funding for little benefit. Read our media release.
2/2: Important - Scam warning. Scammers are continuing to contact people claiming to be an employee or representative of Consumer Action.
The scammers claim to be checking whether banks are overcharging their customers and tell you that they have found that your bank is overcharging you and owes you thousands of dollars. They may ask you to pay money or to provide your bank account details so that they can claim money back for you from your bank. Consumer Action is not responsible for these calls.
We strongly advise the public - do not give any of your personal or bank account details to these callers and do not send them any money. Read our media release.
January 2010
29/1: Consumer InterAction. Consumer Action has relaunched its bi-monthly e-bulletin covering the latest news and developments in consumer law and policy from the Centre. Read Consumer InterAction.
25/1: Work at Consumer Action. We are looking for a new Coordinator for our Standards Project to start in mid-late February. Download the Position Description and apply here. Applications close 4pm Monday, 1 February.
20/1: Warning to parents. Beware VCE success courses and maths tutoring software. Read the official government warning. Consumer Action has also received complaints about such educational products and services
December 2009
23/12: Casework success against money retrieval agency, Collection Point. Consumer Action has succeeded in a Victorian Civil and Administrative Tribunal (VCAT) action against money retrieval agency, Collection Point, and recovered the sum of the sum of $1,108.85 for one of its clients. The case became more complicated when Collection Point’s lawyers launched proceedings in VCAT against Consumer Action. See our media release.
10/12: New national consumer law and protections for consumers sold to in their home. At their meeting on Friday, the Consumer Affairs Ministers agreed to the final form for a new single national consumer law for Australia. The meeting communiqué gives an overview of what the consumer law will look like and most states will enjoy greater consumer protections, with many of the existing Victorian laws to be adopted nationally.
However, there are some important details that were not included in the communiqué. For instance, it appears that Victorians will lose current protections against pressure selling if they “invited” a salesperson to their home. Under the new laws, Victorians will also lose their rights to clear and legible contracts – re-opening the door to unfair use of the “fine print”.
4/12: Door to door sales and in-home sales. The Consumer Affairs Ministers are meeting in Perth today to decide what rules from the states and territories will make it into the new single national consumer law for Australia.
Currently, Victorians enjoy some of the best protections from telemarketers, door to door salespeople and high pressure salespeople selling to them in their home. Victoria gives consumers strong cooling off rights and a salesperson can only stay in a consumer’s home for an hour before they must get written permission, every half hour, to stay longer.
The Ministers have released a plan to scrap these protections for consumers pressured into signing contracts in their home or workplace if they “invited” the salesperson in, even if the invitation was engineered such as when traders get consumers’ contact details from a shopping centre competition. The plan also flags scrapping the limits on how long salespeople can stay in a consumer’s home.
A recent Victorian Government report confirms the serious problems that consumers face when they invite a seller into their home. Consumer Action strongly believes these protections should not be sacrificed for the sake of harmonisation. Read our submission.
October 2009
30/10: Water. Consumer groups warn the delivery of Victoria’s water services could radically alter, following the release of an Essential Services Commission report paving the way for private operators to enter the state’s water sector. See our media release.
21/10: Win for Kleenmaid consumers. Consumer Action Law Centre has successfully represented a couple who sought to recover thousands of dollars they paid a finance company to purchase Kleenmaid goods they never received. See our media release here.
See a copy of the Victorian Civil and Administrative Tribunal decision in this matter here.
Our fact sheet has more information on how to recover money you paid a finance company to buy Kleenmaid goods.
15/10: Bank penalty fees. We welcome NAB’s announcement to scrap its credit card penalty fees. While ANZ, CBA and Westpac have tweaked some of their fees only NAB has got rid of them altogether. Read our joint media release with CHOICE.
15/10: Credit reporting reforms. While the Government’s announcement on credit reporting reforms contain some positive news for individual consumers, Consumer Action is deeply concerned that some of the new reforms could contribute to a rise in irresponsible lending practices such as those seen in the US in recent years. Read our media release
8/10: Important - Scam warning. Scammers are contacting people falsely claiming to be an employee or representative of Consumer Action.
The scammers claim to be checking whether banks are overcharging their customers and tell you that they have found that your bank is overcharging you and owes you thousands of dollars. They may ask you to pay money or to provide your bank account details so that they can claim money back for you from your bank.
Consumer Action is not responsible for these calls. We strongly advise the public - do not give any of your personal or bank account details to these callers and do not send them any money. Read our media release.
September 2009
14/9: Bankruptcy law reform. Consumer Action has made a joint submission to the Federal Government’s draft Bill proposing reforms to bankruptcy law. We support several changes including raising the minimum debt for forced bankruptcy from $2,000 to $10,000, but have concerns about expanding access to debt agreements when there are ongoing concerns with the way these agreements are marketed to consumers in financial difficulty.
1/9: Calling all Financial Counsellors - we need your help.
Consumer Action is currently compiling a report into the payday lending industry in Australia, and we would like to hear from financial counsellors who have experience with clients who use payday loans.
To learn more, click here.
August 2009
10/8: Kleenmaid. Consumer Action is representing a couple who lost over nine thousand dollars in the high profile collapse of Kleenmaid Pty Ltd earlier this year, against the loan company that financed their purchase. The matter will be heard today at the Victorian Civil and Administrative Tribunal. Read our media release.
Victorians who owe money in relation to Kleenmaid purchases can get more information from our factsheet.
July 2009
29/7: Bank penalty fees. We congratulate the National Australia Bank for today showing leadership and scrapping unfair penalty fees for account overdraws or dishonours. The other banks should follow and scrap penalty fees on transaction accounts - and also credit cards. Read our joint media release with CHOICE.
6/7: TLC – introduction agency. Consumer Action is calling for the Victorian Government to take action to have TLC Consulting Services banned from operating in Victoria, as is the case in Queensland, after launching yet another legal action against the introduction agency, this time seeking a refund of $110,000 on behalf of a vulnerable consumer. Read our media release.
June 2009
26/6: Water prices. Larger than expected water price rises for Melbourne households were announced today. We are concerned about the impact on lower income and vulnerable households and tenant households, especially over the next two years. Read our media release.
17/6: Debt collection and unfair bankruptcy. Consumer Action is acting for a 60 year old pensioner who has been bankrupted over a Telstra Internet services bill of less than $1,000 and stands to lose her home. There are more appropriate legal avenues available to collect small debts than bankruptcy, which leads to unnecessary trustee fees that strip equity out of people’s homes. The Federal Government should raise the minimum bankruptcy threshold from $2,000 to $10,000, and specify that this threshold applies to the original debt, not to the debt after late fees, interest and costs are added. Read our media release.
15/6: Consumer Rights. Students on placement at Consumer Action from La Trobe University’s Public Interest Law Practice course have made a detailed submission to the National Human Rights Consultation arguing that consumer rights deserve protection in any national human rights act or charter.
May 2009
26/5: Telecommunications. Consumer Action argues that the current self regulatory regime for telecommunications is failing Australian consumers in a submission to the Federal Government.
21/5: Bank penalty fees. The Reserve Bank has revealed that Australians paid over $1 billion in unfair penalty fees in 2008. Consumer Action has been urging the banks to change their penalty fee practices for years. If they won’t act to stop this excessive fee-take, the Federal Government needs to step in. Read our media release.
April 2009
27/4: National consumer credit laws. Consumer Action welcomes today’s release of proposed national consumer credit laws. Some major improvements to Australia’s lending laws are proposed but there are also some serious flaws in the Bill. Read our media release.
24/4: Love Search Intros – introduction agency. Consumer Action Law Centre has issued legal action against introduction agency R & H Consulting, trading as Love Search Intros on behalf of a client. The action alleges unconscionable conduct, misleading and deceptive conduct and breaches of the Victorian Introduction Agents Act (1997). Read our media release.
21/4: Unit Pricing. Consumer Action has made a submission on the Federal Government’s draft unit pricing code. We welcome a mandatory unit pricing regime for Australian supermarkets, which will bring us up to date with best practice overseas by allowing Australians to compare the price and value of different grocery items and make large savings on grocery bills. Our submission sets out some of the ways we think the code needs to be improved to make sure our unit pricing regime is effective.
2/4: Mental Blank – education services. Consumer Action Law Centre has issued legal action against education course provider Mental Blank Pty Ltd on behalf of a client. The action alleges breach of contract for failure to deliver promised goods and services. Read our media release.
March 2009
24/3: Consumer credit and access to justice. A new Briefing Paper outlines our concerns to ensure consumers continue to have realistic access to the judicial system for consumer credit and debt disputes once consumer credit laws transfer from the States and Territories to the Commonwealth later this year. A low/no-cost division will need to be established in the Federal Magistrates Court or Federal Court for consumer credit claims.
13/3: Debt collection. Consumer Action has received numerous complaints about the conduct of debt collector ACMS in the past but this is the first time we have taken a legal action to prevent harassment of a consumer in breach of the Victorian Fair Trading Act. Read our media release.
2/3 This week is National Consumer Fraud Week: The Australasian Consumer Fraud Taskforce is promoting National Consumer Fraud Week, which runs from March 2 to March 8. The Taskforce aims to raise awareness of the fraud in the community, assisting consumers to avoid being scammed. Every year, one in 20 Australians falls victim to a scam. The Taskforce is requesting consumers who have been targeted by scammers to fill in a short online public survey. Read More.
February 2009
25/2: Direct Debits. Do you have a story – good or bad – about using direct debits? They can be a convenient tool for managing bill payments but can also cause problems for consumers. Please tell us your story as part of a project we are undertaking on direct debits.
23/2: Bushfire Victims rights in dealing with lenders. Consumer Action Law Centre advises people affected by the fires that they may have additional rights in arranging a suitable hardship variation with their lenders on existing loan contracts. Read our media release.
17/2: New consumer laws – unfair contract terms. Consumer Action welcomes the Federal Government’s announcement today that it will fast track new national laws to protect consumers from unfair contract terms and to give the ACCC more flexible and modern enforcement powers. Read our media release.
13/2: Amazing Loans – fringe lending. Consumer Action Law Centre has once again initiated legal action against Amazing Loans on behalf of a client. The action alleges unconscionability in relation to the fees and interest charged. Read our media release.
12/2: Water prices. Water is an essential service and a basic human right. With Victorian water bills continuing to increase due to difficult conditions and new water supply projects, we are fighting to make sure price increases are at least fair and reasonable and households that may have trouble affording higher bills are protected. We have made a joint submission with the Consumer Utilities Advocacy Centre to the current review of Melbourne water prices.
5/2: ATM fees. Consumer Action has made a submission to the Reserve Bank of Australia regarding its proposed reforms to the way we are charged for using ATMs. We support reform but want improvements to the proposed arrangements so that consumers do not face excessive fees and charges, especially certain groups such as people living in country areas.
January 2009
16/1: Federal Budget 2009-10. Given current economic conditions, Consumer Action has made a modest submission to the Federal Government on three key consumer priorities for the Government’s budget considerations this year.
December 2008
16/12: ‘It’s not you, It’s Us' – Introduction Agency Breaks More than Hearts
Consumer Action Law Centre has today launched legal action on behalf of a client, a vulnerable Victorian man with an acquired brain injury. Our client seeks a refund of more than $10,000 paid to an introductory agency that has been permanently restrained from carrying on an introduction business in Queensland. Read our media release
9/12: Educational software company discounting the truth to make sales
Consumer Action Law Centre is taking legal action against A.I.M. (Melb) Pty Ltd (now National Dealer Network Pty Ltd) on behalf of a disability pensioner from a non-English speaking background, alleging high pressure selling of Maths and English software and tutoring services. Read our media release.
8/12: Mortgage exit fees. Consumer Action has today initiated a test case legal action against RHG Mortgage Corporation (formerly RAMS Mortgage Corporation) on behalf of a consumer who faces an excessive early termination fee to switch her home loan, despite RHG imposing interest rate rises well in excess of the Reserve Bank’s headline rate and the market. Read our media release
2/12: Educational software company targets parents in their homes. Consumer Action Law Centre has instituted legal proceedings against Advanced Education Resources, a seller of mathematical education software, for taking advantage of a non-English speaking widow who wanted to provide for her daughter’s education. Read our media release.
November 2008
19/11: Fair energy pricing. Consumer Action has welcomed the Victorian Government’s new energy information campaign but it does not address the upcoming removal of price regulation in Victoria or the serious marketing problems affecting Victorians. Read our media release.
13/11: Home building warranty insurance. We welcome the Senate Economics Committee’s findings today that the current system simply isn’t working well enough. Many of the Committee’s recommendations are good but vague, so whether governments will make any changes in practice remains to be seen. It has got it right by recommending that more information about the insurance be publicly reported, including through inclusion in the National Claims and Policies Database. We also strongly support better and nationally-harmonised consumer protection including a 'loss of licence' insurance trigger, a ‘guarantee of completion’ and tougher disciplinary procedures. But there are no timeframes given for making the changes and no details. Many of the changes will also rely on a tough building regulator that cracks down on dodgy builders and removes licences where needed, but the current experience is that state building regulators don’t do enough to protect consumers. The Committee also missed critical issues such as difficulties in proving a builder is insolvent once they stop trading. They should have recommended a ‘stopped trading’ insurance trigger and a ‘guarantee of rectification’ not just of completion.
6/11: Fringe lending. Consumer Action has today initiated legal action against Amazing Loans on behalf of a client who was required to repay a total of $7,835.36 for a $3,000 car loan, thanks mainly to an exorbitant loan advance and administration fee. We are calling on the Federal Government, through its proposed new consumer credit laws, to prohibit payday and other fringe lenders from charging exploitative fees for small loans. Read our media release.
October 2008
27/10 Unit pricing. Consumer Action has made a submission to the Government’s Unit Pricing Issues Paper. We support a national, uniform and mandatory unit pricing regime for grocery items.
16/10: Have your say on Truth in Labelling. Lawyers for Animals Inc wants to know what Australians think about buying cosmetics and cosmetic labelling. You can complete their 3-minute online survey, the results of which will help found a report to be published later this year.
15/10: Penalty fees on concession accounts – call to action for Anti-Poverty week. Consumer Action and CHOICE are today calling on the Commonwealth Bank and the ANZ to stop gouging low-income earners through unfair penalty fees on their concession accounts, also known as basic bank accounts, which offer reduced-fee banking to recipients of government benefits such as pensioners and other concession card holders. Both Westpac and the NAB have already removed penalty fees from their concession accounts. Read our joint media release and our fact sheet.
14/10: Debt collection. Consumer Action has today warned that the National Australia Bank has been selling off credit card debt owed by customers to Accounts Control Management Services (ACMS), a debt collector well-known to community workers and financial counsellors for its refusal to negotiate repayment plans and other unscrupulous tactics. Consumers have complained that ACMS demand full payment for debts even where consumers experiencing hardship attempt to negotiate alternative payment arrangements. Read our media release.
12/10: Unfair bankruptcy actions that strip home equity. Consumer Action wants the Federal Government to make a simple change to Australia’s Bankruptcy Act to lift the current threshold under which people can be forced into bankruptcy for as little as $2,000. The inappropriate use of bankruptcy rather than other debt collection processes puts people’s homes at risk over small debts due to the fees that bankruptcy trustees rack up - sometimes out of all proportion to the original debt. Read our media release.
7/10: Fairness matters. Consumer Action presented a paper to the LexisNexis Credit Law 2008 conference entitled Fairness: The New Touchstone in the Regulation of Credit Fees and Charges. The presentation examined the increasing use of fairness in the consumer regulatory landscape and how fairness might be applied to the regulation of consumer credit contracts. We suggest that fairness is pro-competitive – it can promote consumer choice and better market outcomes. View the paper and presentation.
6/10: Consumer credit. Consumer Action has today issued legal proceedings against a fringe lender that exploits loopholes in the law to take advantage of vulnerable consumers. Consumer Action is alleging that the lender, Car and Home Finance Ltd, took advantage of a legal loophole by having a consumer sign a declaration that the loan was for ‘business purposes’, even though it was a personal loan. Read our full media release.
6/10: Consumer credit. COAG’s agreement for the regulation of consumer credit is a watershed first step towards adequate and fair regulation in the interests of all Australians. Consumer Action looks forward to working with governments and other stakeholders on the content of the new laws to ensure responsible lending obligations on all lenders, that lenders deal appropriately with genuine customer financial hardship, and a true end to exploitative lending practices such as pre-approved credit and payday lending.
September 2008
25/9: Truth in Pricing. Consumer Action welcomes the Government’s new Bill to make sure businesses that represent a price for any goods or services they sell must also tell consumers the total single price that the goods or services will cost. This will crack down on unfair practices like advertising tiny airfares when more levies and charges are added on later. It is disappointing though that the Government has left loopholes in the Bill excluding postage and handling costs and all financial services, including banking and insurance products, from the law. Read our earlier submission.
17/9: Bank penalty fees. Consumer Action and CHOICE are disappointed that the Senate Economics Committee has failed to recommend any action to protect consumers from unfair bank penalty fees, despite finding that there are a range of problems with these unfair fees. Read our media release or join our Fair Fees campaign.
12/9: Unit pricing. Consumer Action welcomes the Government’s release today of its Issues Paper on important unit pricing reforms. As with all potential reforms that reduce excessive profits and return savings to consumers, retailers will fight hard on the details to get a unit pricing scheme that doesn’t work as well for shoppers. The Government will need to ensure that the national unit pricing regime requires supermarkets to display unit prices prominently and large enough for consumers to actually be able to read, and to specify that larger units like per kilo and per litre should be used so that supermarkets don’t hide price differences from shoppers by using smaller units like per 10g or per 100ml. Without uniform, national, mandatory standards for unit prices, we will see the the problems apparent in other countries where unit pricing standards have been left to individual supermarkets.
12/9: Motor car trading. Consumer Action has launched two legal actions in the Victorian Civil and Administrative Tribunal against a Brunswick businessman alleging he is selling poor quality motor vehicles to consumers without a motor car trader’s licence. Read our media release.
5/9 Insurance and flood cover. Consumer Action welcomes the ACCC’s decision to deny authorisation to the Insurance Council of Australia’s proposal for a common definition of 'inland flood’. It is disappointing that the Insurance Council has already indicated it will not take up the ACCC’s offer to re-approach it after working with consumer groups and other interested stakeholders to develop a more appropriate and fairer common definition of flood, but perhaps not surprising given the Insurance Council’s bizarre claim that it somehow consulted with consumer groups on this proposal. Read our joint submission.
August 2008
15/8: Reckless lending and credit card limit increases. Consumer Action has released a landmark report today exposing the different psychological manipulations used by banks and other credit providers to persuade people to take up offers for higher credit card limits. The report – Congratulations, You’re Pre-Approved! – is the first of its kind in Australia. Read our media release.
11/8: Privacy and credit reporting. Consumer Action has welcomed today’s release of the Australian Law Reform Commission’s report into Australia’s privacy laws and practice, and in particular its sensible recommendation that responsible lending obligations must be implemented in Commonwealth, state and territory laws before the Government consider allowing credit reports to include individuals’ repayment histories. Read our media release.
11/8 Insurance and flood cover. Consumer Action, together with several other organisations, is vigorously opposing a push by the Insurance Council of Australia asking the ACCC to authorise a proposal for insurers to be able to share a common definition of ‘inland flood’. The Insurance Council’s proposal would unfairly expand what is understood as a “flood” well beyond its natural meaning, with the likely result that more damage will be excluded as “flood” under ordinary Australians’ household insurance policies. Our joint submission sets out our concerns in more detail, including that the Insurance Council has failed to consult with the community about the important issue of insurance coverage for flood.
8/8 National Energy Market reform. National regulation of our energy market is drawing closer, and the final processes to determine aspects of non-economic regulation, including the National Energy Customer Framework, are underway. Consumer Action and the National Consumers’ Roundtable on Energy today made a joint submission to the Ministerial Council on Energy, to ensure consumer protections are maintained or enhanced through this transition. Victorian households, who current benefit from Victoria’s best practice energy consumer protection framework, are at risk of losing hard fought-for protections in the transition to national regulation.
7/8: Private car parks. Consumer Action has launched a test case against Australian National Car Parks Pty Ltd in the Victorian Civil and Administrative Tribunal, after the car park charged a consumer $66 for failing to display a valid ticket in a free car park. Read our media release.
6/8 Unit pricing. Consumer Action welcomes the Federal Government’s announcement that it will introduce a mandatory, national, uniform unit pricing regime in Australia. An effective unit pricing regime will bring significant benefits to Australian households. It is now important that the Government ensure the regime is effective in practice by requiring unit prices to be displayed in a large enough print size for consumers to read, and to use appropriate units of measurement such as per kilogram and per litre so that price differences are easy to understand.
1/8: Bank penalty fees. Consumer Action and CHOICE are continuing their Fair Fees campaign. We have made a joint submission to the current Review of the Code of Banking Practice, arguing that the Code (which sets out how the banks must deal with their customers) should make sure banks follow better practice with regard to penalty fees, including limiting the amount of these fees to the banks’ costs and getting rid of the most unfair fees altogether.
July 2008
25/7: Competition in the banking sector. Consumer Action has provided a submission to the House of Representatives Economics Committee Inquiry into Competition in the Banking Sector. We argue that while competition is working in some areas of banking, there are also failures of competition. We are particularly concerned of the inability of consumers to drive competition, partly due to barriers to switching such as the imposition of large early termination fees on mortgages. We call on the Government to ensure consumers can easily compare and swtich between banking products, to further drive competitive outcomes.
21/7: Reckless lending. Many Australian lenders use of the term ‘responsible lending’ to describe various approaches to marketing and selling credit that are regarded as ‘ethical’ or ‘appropriate’. Consumer Action is concerned that there is still much ‘irresponsible’ or ‘reckless’ lending in the marketplace. We have produced a briefing paper that explores issues related to reckless lending and asks ‘to what extent do borrower and lender interests align in the marketing and selling of credit’? Click here to download the briefing paper.
9/7: Debt collection. Are you getting debt threats? Have you felt threatened by a debt collector? The Australian Competition and Consumer Commission and the Australian Securities and Investments Commission are holding a Debt Collection Phone-in Day. If you have experienced problems with debt collectors or creditors, you can phone in to talk about your experience. Call the Debt Collection Phone-in Day Hotline on 1300 302 502. Thursday, 31 July 2008, 8.30am to 5.30pm. Click here for more information.
8/7: Bankruptcy trustees fees. Consumer Action is concerned about the excessive levels of fees charged by some bankruptcy trustees. We are concerned that the regulatory framework does not sufficiently protect bankrupts and that competition is not working to ensure efficient and fair outcomes. We have provided a submission to the Insolvency and Trustee Service Australia about the framework for the remuneration of bankruptcy trustees, including a case study outlining the experience of a Consumer Action client.
4/7: Ensuring fair energy pricing. Consumer Action has released a fact sheet about reforms needed to ensure consumers benefit from the competitive energy market. We are calling on the Victorian Government to require retailers to publish details of all market contracts and ensure offers are comparable, by mandating disclosure of certain features and requiring consistent terminology.
4/7: On the Wire. The latest edition of On the Wire, Consumer Action's regular newsletter on community sector involvement and interest in the national energy market, is now available. To subscribe, please email info@consumeraction.org.au with 'On the Wire' in the subject line.
June 2008
28/6: National Say NO to the Wizard day: Consumer advocates in three states are campaigning against unfair motor car trading practices, with a national 'Say NO to the Wizard' day on 28 June 2008. Read our press release.
17/6: Payday lending. Consumer Action has prepared a submission to the Victorian Government’s Small Amount Cash Lending Inquiry. We have also prepared a draft literature review as part of our ongoing project examining payday lending in Australia. We argue that most payday lending exacerbates rather than resovles consumers’ debt problems.
16/6: Have your say! The ACCC is currently investigating the proposed acquisition of St George Bank Limited (St George) by Westpac Banking Corporation (Westpac). Given the stong consumer element of the proposed acquisition, the ACCC is seeking to encourage greater consumer involvement in its market inquiries process in the course of its investigation of this matter. Consumer Action encourages consumers to complete the survey which can be downloaded here. Closing date 23 June 2008.
11/6: Keeping Australia’s consumer protections up to date. Consumer Action has released a report, The consumer protection provisions of the Trade Practices Act 1974: Keeping Australia up to date. The comprehensive report examines Australia’s consumer protection framework in light of international developments. It makes a number of recommendations that advance the interests of consumers and a well functioning competitive market to ensure Australia’s consumer protection framework is world’s best. The report complements the recent final report from the Productivity Commission’s Review of Australia Consumer Policy Framework.
5/6: Motor Finance Wizard. Consumer Action has launched proceedings against Motor Finance Wizard in the Victorian Civil and Administrative Tribunal. Read our media release.
Fair Go on Fees
Join our campaign against unfair, excessive and unlawful penalty fees charged by Australian bank
May 2008
29/5: Motor Finance Wizard. Consumer Action is continuing our campaign against unfair motor car trading practices. Click here for more information.
29/5: The latest edition of Consumer Action’s e-bulletin, consumer interaction, is now available.
28/5: Maths software litigation. Consumer Action has instituted legal proceedings in the Victorian Civil and Administrative Tribunal against Addsup Education trading as Australian Institute of Mathematics Victoria and Lombard Finance. Read our media release.
15/5: Direct debit arrangements. Consumer Action has long been concerned about unfair terms in direct debit contracts. We recently obtained a favourable outcome for a client, a mother of two young children, who purchased self defence classes for her children from Albion Self Defence Academy using a DebitSuccess direct debit contract. The consumer was being pursued by DebitSuccess for a debt of almost $1,500 for classes that were not provided. Read our full media release for details.
April 2008
21/4: Motor car trading. Consumer Action has received a number of complaints from consumers about the practices of Motor Finance Wizard, a licensed motor car trader in Victoria. Motor Finance Wizard also operate in NSW and Queensland.
16/4: Home building warranty insurance. Consumer Action has provided evidence to a Senate Economics Committee Inquiry into Mandatory Home Building Warranty Insurance. We have long been concerned that mandatory home building warranty insurance offers little or no protection for consumers, yet comes at significant cost. This Inquiry gave us the opportunity to present our concerns and case work experience to the Committee. Click here to read a transcript of evidence from the Inquiry hearing and here for a copy of our submission.
10/4: On the Wire. The latest edition of On the Wire, Consumer Action's regular newsletter on community sector involvement and interest in the national energy market, is now available. To subscribe, please email info@consumeraction.org.au with 'On the Wire' in the subject line.
9/4: Unfair contract terms. Consumer Action has launched litigation in the Victorian Civil and Administrative Tribunal against Debit Success (a company that organises direct debit agreements) and the Albion Self Defence Academy. We are arguing that a term of the contract that requires a consumer to pay for 12 months of self defence classes that were never used is unfair pursuant to the unfair contract term provisions of the Fair Trading Act 1999. Read our media release here.
March 2008
27/3: Telecommunications fees & charges survey. Researchers from Griffith University’s Centre for Credit and Consumer Law are conducting a study of fees and charges imposed by telecommunication providers, including mobile phone, landline and internet. They would like to hear from people who have had experience of fees and charges with these services, through an anonymous online survey. Comments and survey results will be published in a research report, and reported anonymously. You can access the survey by clicking here.
15/3: World Consumer Rights Day – Consumer Action releases policy plan for 2008. Consumer Action has publicly released its Policy Plan 2008, which sets out our policy and campaign priorities for the year. You can also read our media release launching the plan here.
13/3. Competition in the grocery market. Consumer Action has provided a submission to the Australian Competition and Consumer Commission’s, Inquiry into the effectiveness of competition in the grocery sector. Our submission provided evidence about consumer behaviour in the grocery market, the pricing practices of supermarkets and the benefits of a national unit pricing system, and the role of regulators in facilitating effective competition.
12/3: Concessions Count. Consumer Action has joined the Affordable Living Alliance, a coalition of community agencies concerned about rising costs of energy and water and the risk of cuts to government concessions. The Alliance has called on the Victorian Government to increase concession amounts and uncap currently capped concessions in the 2008-09 budget to ease the hardship faced by Victorian households. Keep an eye on the Affordable Living Alliance web page for further updates about the campaign.
11/3: Housing affordability. In a submission to the Federal Government, Consumer Action has strongly supported the proposed introduction of First Home Saver Accounts. In our view, the proposed accounts are an innovative solution to some of the problems rising housing prices have caused Australian consumers. Despite this, our submission has raised a number of concerns about the regressive nature of the proposed accounts, in that they will benefit high-income earners more than low-income earners. We’ve asked for the government contributions to the accounts to be amended, so that they operate equitably.
1/3: Private car parks. Consumer Action continues to campaign against the unfair business practices of private car parks. In letters to Australian National Car Parks Pty Ltd and Care Park Pty Ltd, we have argued that the issuing of payment notices is unfair to consumers and may be unlawful. We have suggested the car parks install boom gates at car park entrances, so consumers do not inadvertently park without a ticket. Read our media release.
February 2008
29/2: The latest edition of Consumer Action’s ebulletin, consumer interaction, is now available.
29/2: Finance broking. Consumer Action has claimed that finance broker Sample & Partners is flouting Federal Court orders. In May 2007, the Australian Securities and Investments Commission obtained orders that Sample & Powers engaged in misleading and deceptive conduct by making claims that if consumers switched loans, they would be able to pay off their home loan sooner, without explaining that this would require extra repayments. The court orders required that Sample & Partners consider and respond to consumers’ applications for compensation. However, the orders are not working for consumers who have suffered loss. Read our full media release.
24/9 SCAMS TARGET YOU! Protect yourself! Consumer Action is partnering with the Australasian Consumer Fraud Taskforce in the two-week consumer fraud awareness campaign, “Fraud Fortnight”. Offers that sound to good to be true trick you into giving away your heart, your money, or your personal details. Seduction scams never deliver what you want. Our message for consumers is: if in doubt, don’t give out your details.
For more information about scams and how to protect yourself, visit Scamwatch
22/2: Energy market regulation. The Essential Services Commission is allowing energy retailers to impose a supply fee of up to $95 on consumers should their current retailer go bankrupt or leave the market. In a submission to the Essential Services Commission, we have argued that the fee should be removed – the fee not only inhibits competition, but is manifestly unfair as consumers will be charged for something for which they have no control. Read more in our media release.
14/2: Unit Pricing. Consumer Action has today called on the Federal Government to legislate for mandatory unit pricing in Australian supermarkets, to help Australian consumers deal with increasing cost of groceries. Read our full media release.
Unit pricing, which is compulsory throughout Europe and in several parts of the United States, requires supermarkets to provide price information for pre-packaged grocery items as an amount per standard unit (ie, litre, kilogram), in addition to the total price. Unit pricing can improve competition in the grocery market by improving the ability of consumers to make decisions about price.
In a submission to the consultation on the new national trade measurement system, Consumer Action has outlined the benefits of unit pricing for consumers and competitiveness in the grocery market. You can read our submission here.
December 2007
21/12: Privacy and credit reporting. Consumer Action has provided a submission to the Australian Law Reform Commission’s Review of Australian Privacy Law, focusing on the credit reporting provisions in the Privacy Act. We argue that the review must address weaknesses in the current complaints-handling system for credit reporting, and address concerns about the effectiveness of the Office of the Federal Privacy Commissioner as a regulator.
20/12: The December edition of Consumer Action’s newsletter, consumer interaction is now available.
November 2007
30/11: Rising energy prices. The Victorian Government has raised the price of standing contracts for energy and gas in Victoria by up to 17%. The price rise applies from 1 January 2008 and will mean households will pay an average of $160 per annum more for their energy bills. Consumer Action is concerned with the lack of transparency in the price setting process – the prices were negotiated by the Government and energy retailers without any public analysis of the underlying costs. You can read our media release here.
27/11: Do Not Knock – campaign update. Due to the overwhelming success of our campaign, we have re-printed the Do Not Knock stickers. To obtain a sticker, please send a stamped, self-addressed envelope to us. For more information about the campaign, go to Get involved in our campaigns.
23/11: Annual report. Consumer Action has released its inaugural Annual Report. The report outlines the establishment of Consumer Action, and details our work for the first year of operation. The feature ‘Working for change: casework and campaigning for action" highlights the integration of casework and campaigning at Consumer Action. You can download a copy of the 2006/07 Annual Report by clicking here.
23/11: Motor car trading – lemon laws. Consumer Action has prepared a submission to the Victorian Government’s consultation on motor vehicle lemon laws.
A lemon is a vehicle that continuously breaks down or is mechanically unsound. Despite consumer protections relating to product quality, many consumers are unable to obtain redress when they have purchased a lemon. Consumers who have purchased a lemon are commonly shunted between dealers, manufacturers and repairers when trying to enforce their rights, and often give up out of frustration. Lemon laws should ensure consumers who purchase a lemon have a concrete right to a refund or a replacement, rather than merely a repair.
Consumer Action strongly supports the establishment of motor vehicle lemon laws in Victoria. In our submission, we strongly argue that lemon laws should apply not only to new cars, but to used cars as well.
15/11: Do Not Knock – campaign update. We have been inundated with calls and emails about our Do Not Knock campaign. For more information about what you can do to support the campaign or to download a copy of the sticker, go to Get involved in our campaigns. Should your complaint be regarding unsolicited marketing telephone calls, please visit www.donotcall.gov.au or call 1300 792 958 to be included on the Do Not Call register.
15/11 Campaign and report launch. Consumer Action has today launched a campaign to assist consumers avoid door-to-door marketers if they wish to. The campaign distributes a Do Not Knock sticker, which warns sales representatives that they are in breach of the law if they knock on a door to which the sticker is affixed. Read a copy of our media release or download a copy of the sticker. Consumers can use the sticker to protect themselves from door-to-door marketers. To obtain a copy of the sticker, contact Consumer Action.
A case study report, Coercion and harassment at the door: Consumer experiences with energy direct marketers, is also launched as part of the campaign. The report, prepared by Consumer Action and the Financial & Consumer Rights Council details the stories of 28 consumers who have been lied to, taken advantage of or harassed when direct marketed by energy marketers. The report demonstrates that consumers are experiencing significant problems with marketers in the competitive energy market.
7/11: Get involved in our campaigns. Consumer Action has added a new page to our website - get involved in our campaigns! Currently, we're seeking your assistance with a campaign about unsolicited credit card limit increase offers. For more information, click here.
October 2007
17/10: Private car parks. Consumer Action has been contacted by consumers who have been “fined” by private car parks for failing to follow instructions to pay for parking. Private car parks do not have the statutory authority to issue fines, but are seeking payment for damages for breach of contract. If the payment sought is out of all proportion to the damage caused to car park by the failure of a consumer following parking instructions, then it may be a penalty and be unlawful.
Consumer Action has developed a fact sheet which includes a pro forma letter to assist consumers challenge the lawfulness of “fines” issued by private car parks. The fact sheet is for information purposes only. If you want legal advice about your particular situation, please contact our Consumer Legal Practice.
10/10: Consumer Action has given a number of presentations in public forums recently.
Paul Gillett, the Centre’s co-Director - Legal Practice, debated ABA CEO David Bell about penalty fees at the 2007 Credit Conference in Queensland. His paper, Debt before dishonour, is available for download.
Gerard Brody, the Centre’s Director – Policy & Campaigns, presented to the South Australian Financial Counsellors Association Conference on reckless lending. His presentation examined a range of poor lending practices, including inappropriate mortgage refinancing and fringe lending.
Catriona Lowe, the Centre’s co-CEO, presented at the 2007 Abacus Convention. Abacus is the peak body for credit unions and mutual building societies. Catriona’s presentation encouraged the Abacus members to examine their business practices and to align them with the interests of consumers.
1/10: Consumer policy. Consumer Action promotes consumer policy responses that recognise the reality of consumer behaviour and experience in markets. We continue to push Government and policy makers to consider the actual experience of consumers.
In July, in response to the collapse of a number of property debenture companies, the Australian Securities and Investment Commission released a consultation paper proposing a new approach to regulating higher risk debenture investments. In a submission to the consultation paper, Consumer Action has argued that complex and lengthy disclosure documents which detail risks might not sufficiently influence consumer decision-making. In the submission, Consumer Action welcomes ASIC's proposal to further regulate advertising of risky debenture investment products as an adjunct to better and more honest disclosure. We also argue that further investigations should be undertaken about the role of financial advisers in marketing risky investments.
September 2007
30/9: The September edition of Consumer Action's ebulletin, consumer interaction, is now available.
28/9: On the Wire. The latest edition of On the Wire, Consumer Action's regular newsletter on community sector involvement and interest in the national energy market, is now available. To subscribe, please email info@consumeraction.org.au with 'On the Wire' in the subject line.
17/9: Reckless lending. Consumer Action has welcomed the recommendations to reform credit regulation, released today by the House of Representatives Economic, Finance and Public Administration Committee into Home Loan Lending. Click here to read a copy of the media release.
4/9: More fees cut as campaign gains momentum. CHOICE and Consumer Action have welcomed NAB’s announcement today it will cut direct debit dishonour fees from $50 to $30 and will launch a new mainstream transaction account that allows consumers to avoid bank penalty fees altogether. Read our press release here.
4/9: Penalty fees. Continuing the success of our Fair Go on Fees campaign, Senator Steve Fielding has introduced a bill into the Senate which would ensure bank fees reflect a reasonable estimate of a financial institution’s loss, as well as empower the Australian Securities and Investments Commission to monitor and enforce the level of penalty fees. The bill has been referred to the Senate Economics Committee to report by 17 September 2007.
Consumer Action and CHOICE have provided a submission to the Committee. Our submission argues that a regulatory solution is required to deal with penalty fees, and should include a range of measures, such as empowering a regulator to investigate and publicly report on the level of fees. We continue to encourage consumers to reclaim unfair and potentially illegal penalty fees, by visiting www.fairfees.com.au.
August 2007
13/8: Consumer Action has released a research report, Water Reform in Victoria: Independent pricing regulation and its outcomes for consumers. The report finds that during the first water price review, water businesses did not adequately consult with their customers when setting prices for water. With the water businesses about to release their pricing proposals for the next five years, we are demanding that water businesses do more to ensure consumers can understand and respond to prices. Consumer Action recognises that prices will rise to pay for proposed supply augmentations (including a desalination plant), but argues that price rises should apply fairly and equitably across the customer base, and that water businesses must help their customers who cannot afford to pay. See our media release for further information.
5/8: Report launch. Consumer Action has released a research report, Vendor Terms - Rhetoric & Reality. Over recent years, we have seen vendor terms mortgages emerge as a way of marketing overpriced homes to predominately low-income consumers. Such mortgages can be particularly harmful as they often involve poor quality dwellings, high interest rates and misleading and unconscionable sales tactics. Our report makes a number of recommendations that aim to better regulate vendor terms mortgages, so that vulnerable consumers are not disadvantaged when entering the property market. Click here to access Appendix 2 and Appendix 3 of the report.
July 2007
18/7: Consumer Protections in National Energy Market. State, Territory and the Commonwealth Governments are currently negotiating a new consumer protection framework for the provision of electricity and gas through the Ministerial Council on Energy's Retail Policy Working Group. The new framework, likely to be implemented from 1 January 2009, will replace the Victorian Energy Retail Code and other jurisdictional regulations that currently ensure consumers have continued access to energy services. Consumer Action is generally supportive of a harmonised approach, but is keen to ensure that the strong consumer protections that operate in Victoria are retained.
Read our submission, and the attachment which includes our detailed comments on the recommendations made by the Retail Policy Working Group. We have also produced a comprehensive Comparison Table of consumers protections that currently operate in the various jurisdictions which includes our opinion of which jurisdiction has best practice. It is important that the new national regime reflects best practice, rather than the lowest common denominator.
9/7: Privacy and consumer regulation. Consumer Action Co-CEO Carolyn Bond gave a keynote spreech to a national privacy conference in Sydney last week, examining links between privacy and consumer regulation. Carolyn argued that privacy regulation is a consumer issue, and consumer regulation should be considered in the development of privacy laws.
June 2007
27/6 Australia deserves world-class consumer policy. Read Consumer Action’s submission to the Productivity Commission inquiry into Australia's consumer policy framework. Australia has fallen behind international best practice and we need to update our framework to take account of significant market changes, new understandings about consumer behaviour and ways of achieving more effective regulation, while protecting disadvantaged consumers in particular.
19/6: Penalty Fees. Consumer Action and CHOICE have launched a nationwide Fair Go on Fees campaign. Reclaim unfair penalty fees charged by your bank, credit union or building society and write to the Government and Opposition to demand action on penalty fees. Go to www.fairfees.com.au, click on the logo at the top of the page or go to CHOICE and follow the link to go to the Fair Fees campaign site. You can also read our joint media release.
8/6: The latest edition of On the Wire, Consumer Action's newsletter about the community sector's interest in the national energy market (NEM), is now available. This edition includes an update on the latest regulatory developments in the NEM as well as consumer-based research, advocacy and analysis.
1/6: Payday and fringe lending. Consumer Action gave a presentation to payday and fringe lenders at a conference on the Gold Coast last weekend, asking the lenders to consider whether the practices we see in their industry are fair, honest or efficient or could be considered responsible. View our presentation.
May 2007
21/5: Energy Efficiency. The Victorian Government is establishing a new energy efficiency initiative, called the Victorian Energy Efficiency Target (VEET). VEET will require energy retailers to engage in energy efficiency activities in residential households. Consumer Action strongly supports improved energy efficiency measures – they should help prepare Victoria for a carbon-constrained future, as well as reduce the overall cost of energy bills for Victorian households. In our submission, we argue that VEET should prioritise low-income and tenanted households, who generally miss out from other energy efficiency initiatives, such as rebates. In particular, targeting private tenants will assist in overcoming the current poor incentives for landlords to implement energy efficiency measures.
11/5: Penalty Fees. Australians continue to be charged unfair, excessive and unlawful penalty fees by Australian banks and other financial institutions. Consumer Action and CHOICE have written to the Australian Bankers Association and Abacus-Australian Mutuals demanding that their members take action now to put a stop to these charging practices. Read our media release.
Increased disclosure and information to consumers about penalty fees being charged, as proposed today by the Australian Bankers Association, is welcome as its own initiative, but if it is intended to address our concerns it misses the point. Penalty fees are unfair and probably unlawful not because they are hidden, but because they are out of all proportion to the underlying costs they are purporting to recover. In addition, learning's from the psychology and behavioral economics fields tell us that people aren't very good at calculating the effect of things that might or might not happen in the future when making financial decisions now, so tend not to take such information into account. This means that giving consumers more information almost certainly won't work to drive competition to reduce penalty fees.
8/5: National Energy Market. Australia is currently in the middle of some of the most significant reforms ever made to our electricity and gas markets. Australia's eastern seaboard States and SA have agreed to hand over the regulation of their energy markets to a national regulator. The Ministerial Council on Energy, through a Retail Policy Working Group, is currently developing the regulatory framework for the new national energy market.
Consumer Action has made a number of submissions to this process. We support the move to a national energy market but are very concerned that appropriate consumer protections are retained. Regulation should be targeted at ensuring the best market outcomes for consumers and the community as a whole, not just the energy businesses, especially as electricity and gas are essential services.
Our latest submission addresses the proposed overall objectives for the new framework, as well as the proposed role for the national regulator in enforcement and compliance. We're concerned that the proposed objective for the new national framework is too narrowly focused on efficiency, without any concern for who benefits from the gains of efficiency. This would remove the facilitating objectives that currently exist in Victoria, which allow the Victorian regulator to ensure that low-income and vulnerable consumers also benefit from competition and efficiency gains. The proposed objective also takes no account of other legitimate social and environmental objectives.
3/5: Fringe lenders. It seems like business is booming for consumer finance businesses that specialise in lending to marginal borrowers - consumers on lower incomes who have difficulty getting credit from mainstream lenders. Investment opportunities in several of these businesses have been featured in the Australian press recently, particularly the Australian Financial Review.
Consumer Action thinks that the public should be fully informed of the nature of the techniques used by these businesses before deciding whether to invest in them. We produced this opinion piece, together with the Micah Law Centre, which anyone concerned about ethical investing should read - it may not have been published in the newspaper, but we thought it was worth publishing on our website.
Scams Target You: Protect Yourself. Visit SCAMwatch, the website of the Australasian Consumer Fraud Taskforce, to learn more about how to recognise, report and protect yourself from scams
April 2007
30/4: The April edition of Consumer Action's ebulletin, consumer interaction is now available.
17/4: Credit Reporting. Consumer Action has been waiting almost a year for the Office of the Federal Privacy Commissioner to respond to two representative complaints we have made about credit reporting that we believe affect at least half a million Australians. The complaints relate to old alleged Telstra debts sold to debt collection firm Alliance Factoring and then listed on individuals' credit information files held by credit reporting bureau Veda Advantage. Read our media release about our serious concerns over the delay.
We have also provided information on this and other concerns about Australia's credit reporting system to the Australian Law Reform Commission's current review of the Privacy Act 1988. Read our submission (with attachments 1, 2, 3, and 4).
March 2007
27/3: Consumer Action supports the campaign by Australians for Affordable Housing. Read our media release in support.
26/3: Scams Target You: Protect Yourself. March is Scams Awareness Month. This week the focus is: Scams target you: Protect your identity. Visit the SCAMwatch website to learn more about how to recognise, report and protect yourself from scams.
23/3: The latest edition of On the Wire, Consumer Action's newsletter about the community sector's interest in the national energy market (NEM), is now available. This edition includes an update on the latest regulatory developments in the NEM as well as consumer-based research, advocacy and analysis.
20/3: Consumer Action was well-represented on the program of the National Consumer Congress held in Melbourne last week. On World Consumer Rights Day, 15 March 2007, Consumer Action co-CEO Catriona Lowe presented a Speech in the day's leading session - an in-depth discussion of the current Productivity Commission inquiry into Australia's consumer policy framework. Later in the day, co-CEO Carolyn Bond conducted a session on Cutting the red tape: effective consumer regulation.
19/3: Scams Target You: Protect Yourself. March is Scams Awareness Month. This week the focus is: Scams target you: Protect your computer.
13/3: Scams Target You: Protect Yourself. March is Scams Awareness Month. This week the focus is: Scams target you: Protect your phone.
5/3: Scams Target You: Protect Yourself. Consumer Action is participating in a Scams Awareness Month, a campaign of the Australasian Consumer Fraud Taskforce. This week the focus is: Scams target you: Protect your money.
February 2007
28/2: The February edition of Consumer Action's ebulletin, consumer interaction is now available.
28/2: Consumer Action has publicly released its Policy Plan 2007, which sets out our policy and campaign priorities for the year. You can also read our media release launching the plan here.
26/2: Consumer Action is starting a new campaign targeting unfair, excessive and unlawful bank penalty fees. Read our 2004 report lifting the lid on these fees here. We will be working with Choice, the Australian Consumers’ Association – see the Choice website to find out more about account penalties and how to avoid them, and credit card penalties and how to pay less.
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