1. The Banking Royal Commission
Roberta Grealish
Senior Solicitor

2. 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

3. 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

4. They Royal Commission into Misconduct in the banking, superannuation and financial services industry was establish on 14 December 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

5. 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’.

6. 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

7. 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.

9. 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

10. 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

13. 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

14. Watch this space!
1 February 2019 Final report due

15. Questions?

16. Contact us ADMIN –6336 7020 TAL – 9221 7066 Other CLCs: Our website:
Other CLCs: