The Senate has referred an inquiry into credit and financial services targeted at Australians at risk of financial hardship to the Senate Economics References Committee for inquiry and report by 22 February 2018. The inquiry will include buy now, pay later providers and debt management firms.
The inquiry will have particular reference to:
(a) the impact on individuals, communities, and the broader financial system of the operations of:
(i) payday lenders and consumer lease providers,
(ii) unlicensed financial service providers including ‘buy now, pay later’ providers and short-term credit providers, and
(iii) debt management firms, debt negotiators, credit repair agencies and personal budgeting services;
(b) whether the current regulation of these service providers meets community standards and expectations and whether reform is needed to address harm being caused to consumers;
(c) the present capacity and capability of the financial counselling sector to provide financial counselling services to financially stressed and distressed members of the community.