1. Collection House Limited Financial Hardship – Corporate Social Responsibility John Brady Solicitor Director Jones King Lawyers

2. Financial Hardship – Corporate Social Responsibility Corporate Social Responsibility – Financial Hardship Look at what it is Looking back Regulation Credit industry Change in attitude and actions Gone far enough quickly enough 2

3. Financial Hardship – Corporate Social Responsibility Looking forward Lessons from the past Why make changes? How do you make changes? Look at a policy With what effect? 3

4. Financial Hardship – Corporate Social Responsibility Financial Hardship...unable, reasonably, because of illness, unemployment or other reasonable cause, to discharge their financial obligations under their contract with the Supplier and the Customer reasonably expects to be able to discharge those obligations if payment and/or Service arrangements were changed. 4

5. Financial Hardship – Corporate Social Responsibility Corporate Social Responsibility A balanced approach for organisations to address economic, social and environmental issues in a way that aims to benefit people, communities and society. 5

6. The last 30 years 6

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9. Please note. This is not a real investment. Contact 1300 300 630 9

10. ASIC and ACCC ASIC19982009Increase Budget$137.5 million$314.5 million129% Fees$326 million$552 million69% Staff1,1521,81758% Complaints3,79813,633259% Prosecutions199724264% 10

11. ASIC and ACCC ACCC20002009Increase Budget$69 million$134 million94% Staff37269586% Complaints20,131*74,750271% Pursued4,13715,360 # 271% # * There were in addition about 60,000 GST related complaints in 2000 # Estimated 11

12. ASIC and ACCC ASIC & ACCC20002009 Budget$200 million$500 million Staff1,5002,500 Complaints25,000100,000 12

13. Looking forward Treasury consultation Credit market Recession and GFC Bank’s reaction Quick enough? Credit cards  Regulatory Impact Statement 13

14. Looking forward Credit card changes No over the limit fees unless agreed Allocation of payments to high % first Application of % consistently Increased limits not to be offered unless... Consumers have a say in available credit Application forms to contain features Statements contain more information Agreed method of determining approvals** 14

15. Looking forward Other industries Telcos Hotels The lessons? Creeping Regulation 15

16. Corporate Social Responsibility What needs to be done? Steps 1. Identify people affected 2. Identify what needs to be taken into account 3. Prioritise and balance competing interests Facts? Assumptions? Alternatives? Justification? 16

17. Corporate Social Responsibility Collection House Policy Social Justice Guideline Hardship Policy Corporate Social Responsibility Social Justice Guideline Coverage General statement Specific matters Change 17

18. Financial Hardship – Corporate Social Responsibility Hardship Policy Legislative requirements Includes moral imperatives Application widened Guidance – what is hardship When concessions apply Where rules don’t fit, don’t give up Mechanical matters Changing the policy. 18

19. Financial Hardship – Corporate Social Responsibility Effect? Summary 19

20. Collection House Limited www.collectionhouse.com.au John Brady Solicitor Director Jones King Lawyers john.brady@jonesking.com.au Ph: 07 3225 0023