The Banking Royal Commission Roberta Grealish Senior Solicitor

Community legal education Who we are Consumer Credit Legal Service (WA) Inc. (CCLSWA) is a not-for-profit charitable organisation which provides legal advice and representation to consumers in WA in the areas of credit, banking and finance. CCLSWA also takes an active role in community legal education, law reform and policy issues affecting consumers. Community legal education Representation Consumer Credit Legal Service (WA) Inc. (CCLSWA) is a not-for-profit charitable organisation which provides legal advice and representation to consumers in WA in the areas of credit, banking and finance. CCLSWA also takes an active role in community legal education, law reform and policy issues affecting consumers.   The services we provide Legal Advice – TAL – main service run by law student volunteers and supervised by our solicitors Community legal education – high school financial literacy, presentations to other consumer advocates Representation – case files for more complex issues or for clients who cannot advocate for themselves Law reform and policy – royal commission etc Legal Advice Law reform & Policy

Submissions to the Royal Commission Substantive submission: July 2018 Insurance submission: September 2018 Policy Questions (Insurance): October 2018 Response to the Interim Report: October 2018

They Royal Commission into Misconduct in the banking, superannuation and financial services industry was establish on 14 December 2017. It was sparked from growing complaints of misconduct, which had previously been ignored by the financial industry.   The aim of the commission was to gain evidence and assess any conduct that: constitutes an offence against a commonwealth, state or territory law is misleading, deceptive or both breaches trust, duty or is unconscionable conduct, breaches a professional standard of a recognized benchmark for conduct Why CCLSWA made submissions CCLSWA is well placed to provide the Royal commission with insight into and information on how West Australians engage with financial service entities. We are at the forefront of issues with the operation of our daily telephone advice line. CCLSWA advises and advocates for consumers on consumer credit issues Substantive submission to the Royal Commission. Covering these areas: Over provision of credit Disclosure obligations Lack of clarity & information Small Amount Credit Contracts Debt management firms Guarantors for small business loans Financial abuse Mechanisms for redress

July 2018 Substantive Submission Over provision of credit Debt management firms Disclosure obligations Guarantors for small business loans Lack of clarity & information Financial abuse Small Amount Credit Contracts Mechanisms for redress Available on our website > ‘news’ > ‘law reform’.

Over Provision of Credit Financial services providers should not suggest products to consumers that they cannot afford Last year approx. 20% of our case files related to clients provided an with unsuitable level credit

Responsible Lending Make reasonable enquiries about borrowers financial situation. Make reasonable enquires about borrowers objectives and requirements. Verify the consumer’s situation Obligation to assess unstuitability.

Disclosure obligations Financial services entities (FSEs) often: Do not respond to document requests Only respond partially Respond out of time Respond only after an EDR complaint is made

Disclosure obligations cont. Disclosure is crucial to help consumers – (provision of information/documents early will assist in resolving the complaint early) 41 requests made from January 2017 – May 2018 Only 20 requests met within statutory time period

November 2018 Submission to Senate Economics References Committee Payday (SACC) Loans Consumer Leases Debt Management Firms Unlicensed financial services providers “Helper” services Small business lenders Buy Now Pay Later schemes

Watch this space! 1 February 2019 Final report due

Questions?

Contact us ADMIN –6336 7020 TAL – 9221 7066 Other CLCs: Our website: www.cclswa.org.au Other CLCs: https://www.communitylaw.net/