The July meeting of LIRF focused on credit and debt. Bae Bastian from the Financial Ombudsman Service gave a presentation on the role of the Service, services they provide and how to make a complaint. Her presentation is available at – http://xml.lawfoundation.net.au/ljf/site/templates/powerpoint/$file/FOS.ppt. Susan Winfield from the Consumer Credit Legal Centre (CCLC) gave a talk about the role of CCLC and current key issues in credit and debt. In partnership, Legal Aid and CCLC are currently establishing a two year pilot Mortgage Hardship Unit, which will include a duty roster scheme at the Supreme Court. Key issues include - the Supreme Court is seeing a huge increase in the number of people filing for possession. To deal with this the Court has adopted a new system which means that after a matter has been filed and seen by the Registrar, it is listed before a judge approximately 4 weeks later, where the defendant’s defence is considered. People, particularly unrepresented litigants, need legal advice before this stage so that if possible, a reasonable (meritorious) defence can be put forward. The role of the Mortgage Stress Unit’s Duty Solicitor Scheme will be to attempt to assist people after they lodge their defence.
The Unit is also hoping that the Supreme Court will make it compulsory for a coversheet to be sent out with a Statement of Claim for possession of property in 16 languages. This would let the person know that they have 28 days to file a defence and would provide them with LawAccess’s number and information on the telephone interpreting service. The Unit has also provided the Court with materials on public legal services and plain language legal information, including the Mortgage Hardship handbook.
The Commonwealth is currently passing legislation for a National Consumer Credit Protection code which will shift regulation of all credit services from state to Commonwealth jurisdiction. It includes a National licensing scheme – under which all organisations brokering credit will need a licence as of January 2010. It is not currently compulsory for all lenders to be members of complaint handling schemes so court action is sometimes the only recourse. It will be compulsory under the new regulations, and CCLC wants it to be clarified that if membership does become compulsory, what will happen to retrospective cases. The CTTT will lose its jurisdiction with the move to a Commonwealth jurisdiction. The CTTT provided a low cost option for many unrepresented litigants and could be used to secure a stay on Supreme Court proceedings pending decision of the hardship application. CCLC would like a similar type of tribunal to be established at the Federal level. At the EDR conference held in July, a consumer defence group was established which is open to all consumer credit litigants. The aim is to work together better, swap information, precedents etc. If anyone knows anyone who would be interested in joining, and is a solicitor specialising in consumer credit debt and banking, contact Susan at susan_winfield@clc.net.au
Jackie Randles from the Australian Securities and Investments Commission gave a brief talk on consumer protection issues. ASIC has released a consultation paper on dispute resolution available at www.asic.gov.au/credit, as well as papers on General conduct for credit licences and responsible lending. They are also developing a campaign to target consumers, which will build on and expand existing initiatives in states in order to address service delivery gaps, by working with the regional offices, looking at what is currently working and spreading these services to other areas.
ASIC education resources include, an updated national consumer booklet which is in an early draft (this will be available in English only) and fact sheets which are currently available on the website. A specific focus on particular groups and their needs will direct the campaign. ASIC will work with local media (including community radio), MRCs, legal aid and fair trading offices, financial counsellors, and community development workers.
With regard to the financial distress escalation process, ASIC will work with other organisations through referral. ASIC will also work with the Department of Family and Community Services and financial counsellors to develop a new interactive website.
New Initiatives
Legal Aid NSW / CLSD
