Media Release
6 December 2021
Peak consumer leasing industry body, Responsible Leasing Australia (RLA), supports recommendations arising from the recent Treasury review of the Australian Financial Complaints Authority (AFCA).
CEO Mark Thomas said RLA welcomed the review’s focus on transparency, decision making and fairness.
RLA particularly supports two recommendations that address factors currently disadvantaging the consumer leasing industry. Once enacted, these recommendations will promote direct access for consumers to the complaints process, rather than via paid advocates, and remove incentives for financial firms to settle claims with no, little or questionable merit.
However, Mr. Thomas said the review did not address a concern submitted to the review by the consumer leasing industry, which could significantly reduce AFCA costs.
Currently, consumers are able to complain to the AFCA before the completion of an internal dispute resolution with their financial services firm.
Mr. Thomas said a requirement for consumers to complete the internal dispute resolution process with their financial firm would allow the AFCA to focus on disputes with merit.
“We are aware of rogue credit repair companies blatantly manipulating the current system, often to the detriment of their clients, consumers using the system to abscond from their debts, and of consumer leasing companies walking away from disputes as the AFCA fees discourage the continuation of dispute resolution.”
RLA was formed to represent leaders of the consumer leasing sector that adhere to a strict conduct code. The body advocates on behalf of the consumer leasing industry and provides members with information and advice. The association and its members are committed to practising responsible lending, which underpins the sustainability of consumer leasing.
ENDS
For further comment or to learn more about Responsible Leasing Australia, contact CEO Mark Thomas on 0447 850 385 or email ceo@rlal.org.au
