BILL SHORTEN CONFIRMED FOR FCA CONFERENCE

Bill Shorten, The Minister for Financial Services and Superannuation will be delivering the keynote address at the 2012 Financial Counselling Australia Conference.  Minister Shorten will speak at 9.15am on Tuesday 15th May.

As if that wasn't enough, Libby Gore, Comedian and all round media superstar will be MC over the two days of the conference.

So, if you have not yet registered, what are you waiting for!  

http://www.financialcounsellingaustralia.org.au/

AGL Financial Counsellors Forum

AGL – Financial Counsellors Forum

AGL undertook to build on our learning by having a followup forum with financial counsellors in 2012. This is due to  importance of our work with vulnerable customers and wanting to achieve better, more sustainable outcomes. We recognise the importance of continuously looking at our processes and programs to identify areas for improvement. The financial counselling community, in addition to providing support to a number of our customers is also well placed to provide timely and important feedback.

AGL would like to invite you to an open information and discussion forum on the 29^th of May to discuss these challenges. The forum is designed to build on our  no holes barred forum last year, where 45 financial counsellors attended. We took on board the feedback and want to continue  to understand where constructive improvements can assist customers who are struggling to meet their energy needs.

In addition this year we will also be providing an update on smart meters and the upcoming carbon tax, which is being implemented nationally on the 1^st of July.

This session, facilitated by Sue Fraser of Kildonan UnitingCare is designed to provide important and relevant information on AGL structure, policies and procedures, with the changes we have made over the past 12months based on your feedback. A range of Staying Connected, Customer Resolution and Customer Service Centre staff will be in attendance for you to meet and discuss the challenges and needs of vulnerable customers.

More importantly we want to open the discussion to hear your views, what has improved, what challenges you face and the areas where you think we can improve.

Please note there are space limitations and attendance will be registered on a first come, first served basis.

To nominate your attendance please respond to Sating Connected via email at stayingconnected@agl.com.au to reserve your place.

Specific Details:

Date:                   29 May 2012

Time:                  10.00am – 2.00pm

Location:             Vibe Hotel – 630 Little Collins Street, Melbourne 

Facilitator:           Sue Fraser – Kildonan Uniting Care

RSVP:                  stayingconnected@agl.com.au – please include dietary requirements

Tea / Coffee and lunch will be provided on the day

Save the Cap Update from Consumer Action - by Sarah Wilson

Save the Cap campaign update

The good news: There are now 51 signatories to our Debt Trap campaign

The bad news: The government appears to have caved into the furious payday lending lobbyists on the critical issue of what the appropriate interest rate cap level.

In late February, Financial Services Minister Bill Shorten’s office gave the first sign that its proposed consumer protections for the booming payday lending industry may be weakened. Media reports indicated it was floating the idea of doubling the cap to be 20% up front and 4% per month, meaning lenders would be allowed to charge effective annual interest rates of up to 288% for a one month loan, and up to 108% for a twelve month loan.

Such a generous cap would have negligible impact on preventing the debt spirals caused by repeat use of short-term payday loans. This cap is exactly what Cash Converters have been advocating for. What began as real reform could end up as an endorsement of an industry which sells high cost credit to low income and financially vulnerable Australians.

The revised plan is being dressed up as an attempt to strike a compromise between the interests of consumers and lenders but, in reality, it would be nothing less than a capitulation to the industry. It's looking to give lenders what they want and has led to some in the industry privately bragging that the revised model exceeds their expectations.

Perhaps the only cause for muted celebration is that the legislation was not rammed through in the last sitting of parliament. Consumer Action will be fighting hard with our consumer colleagues to stop the approach being preferred by Cash Converters being legislated.

In a related development, the Treasury has prepared a Discussion Paper that addresses reforms in relation to small amount credit contracts (SACCs) to be implemented through regulations (rather than amendments to the Enhancements Bill).   Treasury's paper is not seeking comment on cap limits; rather it will be looking at so-called complementary measures. Check the Debt Trap website www.debttrap.org.au for updates.

Do No Knock Campaign Update from Consumer Action - by Sarah Wilson

Do Not Knock

Developments in our Do Not Knock campaign have been coming thick and fast in the last month.

ACCC legal action: We welcomed the proceedings initiated by the Australian Competition and Consumer Commission against three energy retailers and their marketing companies in relation to door-to-door selling practices.   Among other things, the case will seek clarification on whether a Do Not Knock sticker amounts to a request for salespeople to leave under the Australian Consumer Law. Under the ACL, a salesperson must leave if requested to do so by a consumer - but at present it is not clear whether a Do Not Knock sticker constitutes such a request. While a salesperson who ignores a Do Not Knock sticker may leave themselves open to allegations of trespass, this clarification may mean that ignoring a Do Not Knock sticker will leave salespeople open to fines and other penalties.

Bulk complaints to the ACCC: We have also provided the ACCC with further evidence of ongoing unlawful door-to-door sales practices, in a bulk complaint dominated by retail energy providers. Complaints have been sourced from across Australia via the Do Not Knock website www.donotknock.org.au.  In total we've now referred over 60 cases to the ACCC.

Do Not Knock register:  We read with interest media reports that the Federal Member for Hindmarsh, Steve Georganas, will introduce legislation to create a  Do Not Knock register. The proposed register will be similar to the very successful Do Not Call register, which allows people to register not to be contacted by telemarketers. Consumer Action recently found that a whopping 85% of people supported a Do Not Knock register, so we'll be keeping a keen eye on this proposal.

Energy marketing:  Consumer Action has challenged Australia's energy retailers to put an end to door-to-door energy sales.  We’ve written to the CEOs of all energy retailers who are signatories to the Energy Assured Limited Code of Practice, asking that they voluntarily stop selling door-to-door. We’re sure that the first company to announce that they’ll end the practice will be rewarded with a huge amount of goodwill, and will keep updating our Do Not Knock website with any responses we get - or don't.

Consumer Attitudes research:  In January, we commissioned research into consumer attitudes toward door to door selling.  Key findings were:

• ·         77% dislike door-to-door sales
• ·         Only 3% have a generally positive opinion of door-to-door selling
• ·         Consumers feel misled by in-home sales
• ·         56% of shoppers feel the greatest pressure to purchase when visited at home

You can find the full report on our campaign website, www.donotknock.org.au

Nominations are now open for the 2012 Jan Pentland Prize

The Jan Pentland Prize honours the life and work of a former Chair of Financial Counselling Australia  and campaigner for social justice, Jan Pentland. The Prize is for the amount of $1,000.

The Prize recognises the work of an individual, group or organisation in the community sector, focussing on the financial and/or consumer rights of disadvantaged people in Australia. This includes work in the areas of financial counselling, financial inclusion, and consumer credit law.

The nomination form is here. Nominations are due by Friday 27^th April, 2012.