Debt Management Firms: new principles and compliance measures
5 May 2021
The ABA has welcomed the Federal Treasurer’s release of new regulations that licence debt management firms on 30 April 2021, a change called for by the ABA.
ABA CEO Anna Bligh said, together with changes made last year by the banking sector, these new regulations would will strengthen protections for customers.
“I welcome these changes from Treasurer Josh Frydenberg and believe they’re a necessary protection for customers and an important step for the industry,” said Ms Bligh.
“It’s vital that consumers don’t become victims of predatory credit practices in the debt management industry. These new regulations and stronger compliance measures will help prevent Australians from being ripped off.”
When calling for these changes, the ABA noted that regulators had found debt management firms let customers down by charging high fees, offering regulated services even though they were unlicensed, using high-pressure sales tactics and providing little information about risks.
“It’s vital that consumers don’t become victims of predatory credit practices in the debt management industry. These new regulations and stronger compliance measures will help prevent Australians from being ripped off.”
ABA CEO Anna Bligh
In 2020, the ABA developed an industry approach, in conjunction with consumer representatives, for when Australian banks should deal with debt management firms.
The purpose of the approach is to protect customers by ensuring they are getting the right information from the bank at the right time, including information about free alternative services.
The approach was codified in the Banking Code of Practice as of 1 March 2021.
Latest news
Transcript
Doorstop in Sydney on new mandatory industry scams codes
Read more
13 September 2024
Anna Bligh: This new framework is a comprehensive approach to the terrible scourge of scams. This will mean that every single part of the scam chain where scammers try to take the hard earned money of Australians will now have to play a role in preventing scams, detecting them and keeping Australians safe. Journalist: I… Read more »
Media Releases
Mandatory industry scams codes important part of winning war against scammers
Read more
13 September 2024
Banks welcome the release of draft legislation to establish a new Scam Prevention Framework to better protect consumers and drive scammers out of Australia. ABA CEO Anna Bligh said winning the war against scammers will only be possible through a collective effort across the entire scams chain, including from government, banks, telcos and social media… Read more »
Transcript
Interview on ABC Radio Sydney on surcharges
Read more
4 September 2024
Craig Reucassel (Host): It’s also there was a bit of an inquiry into banking in parliament last week, NAB boss Andrew Irvine complained that he’d paid a 10 per cent surcharge when he bought a cup of coffee in Sydney. Surcharging has been outlawed in parts of the United States, Canada, Europe and Britain. Is… Read more »