George Brandis

The Financial Services Council welcomes the Commonwealth Government’s announcement that the Australian Law Reform Commission (ALRC) will conduct an inquiry into the abuse of older Australians.

Sally Loane, CEO of the FSC said: “Wednesday’s announcement by the Attorney General, the Hon George Brandis QC, to conduct an inquiry into the laws and frameworks to safeguard older Australians is welcome.”

“It is a prime opportunity to raise awareness of the abuse of older Australians – particularly financial abuse ̶ and to carefully consider the legal safeguards necessary to protect our older generation and to build a better understanding of the complexities of the issues which are often hidden from our society.”

“The 2015 Intergenerational Report shows that most Australian’s born today will live well into their nineties thanks to advancements in health and medicine. This also means that older Australians are among our most vulnerable because the longer people live the more likely they are to suffer cognitive decline.”

“Older Australians are particularly vulnerable to financial abuse,” Ms Loane said.

“As the wealth management industry responsible for helping Australians grow and protect their wealth, it is important that we understand how to identify and tackle the complex issues surrounding the financial abuse of older Australians. We are very pleased the ALRC will be examining this issue in their broad inquiry.”

The Financial Services Council hosted the Elder Financial Abuse Symposium in October 2015 which helped to raise national awareness of this phenomenon. The event featured experts including the Hon Susan Ryan AO, Age & Disability Discrimination Commissioner; the Hon John Watkins AM, CEO, Alzheimer’s Australia; and Michael O’Neill, CEO, National Seniors Australia.

“Our forum highlighted that elder abuse is an emerging public policy challenge, which will become more pronounced with the rapid ageing of the Australian population,” Ms Loane said.

“As a society, we can and must do better.”

“If Australians are to enjoy a comfortable and dignified retirement, at a very minimum, their basic human rights must be protected.”

“The FSC, and the wealth management industry is committed to doing its part to prevent the abuse of older Australians. We are developing training for our members so their staff can identify red-flags and devise strategies to safeguard the rights of their older clients,” she said.

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Damian Paull

Commonwealth Attorney-General, Senator the Hon George Brandis QC, has today requested the Credit Reporting Privacy Code (CR code) be varied so that the five day grace period for late payments recorded on a consumer’s credit report is extended to 14 days.

As the CR code developer, ARCA will make an application to the Office of the Australian Information Commissioner to vary the CR code, which went live following the start of comprehensive credit reporting in Australia on 12 March.

“Given the concerns raised by the community and reflected by the Attorney General on this matter, we agree that a 14 day grace period is an appropriate compromise before a late payment is recorded as Repayment History Information,” ARCA CEO Damian Paull said.

Comprehensive credit reporting features the inclusion of Repayment History Information which shows payments which were made or missed for each month over a 24 month cycle on a consumer’s credit report.

Understanding the difference between late payments and defaults

Repayment History Information helps improve the accuracy of predicting the credit risk of consumers, which will help lenders meet their responsible lending obligations. Ultimately, comprehensive credit reporting will ensure more consumers get better access to credit.

“It’s important consumers understand the difference between late payments and defaults,” Mr. Paull said.

“One late payment on your credit report is less serious than a default.  Any of us can be on holidays or forgetful, and a late payment can be offset by an overall positive history of paying most accounts on time. Defaults on the other hand are always more serious,” he said.

As of 12 March 2014, defaults can only be recorded on your credit history if the payment is more than 60 days overdue, is for a debt of more than $150, and you have received written notifications prior to the listing of the default.

“It’s also important for consumers to understand that only credit providers with an Australian credit license can report and obtain Repayment History Information – so late telecommunications or utilities bills will not be included on your credit report,” Mr Paull said.

ARCA has developed www.creditsmart.org.au to help consumers navigate the changes to the credit reporting regime and understand their new consumer rights.

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