Safe and Fair Credit Card Marketing: Why the credit industry is so keen not to speak to its customer

1
Safe and Fair Credit Card MarketingWhy the
credit industry is so keen not to speak to its
customers.

• David Tennant - Director
• Care Inc Financial Counselling Service and the
• Consumer Law Centre of the ACT
• (with a little help from the songs of the protest
  era)

2
A time to build up a time to break down...

• There has been a great deal of discussion about
  responsible lending and credit over-commitment
• The MCCA has been thinking and considering for a
  number of years
• While all of that considering has been going on,
  the bubble of high cost, short term credit has
  continued to grow

3
You cant believe were on the eve of destruction

• Allegedly consumer groups only provide
  assertion, false analysis and anecdotes
• Credit card debt was 13.9 bn when MCCA met in
  Perth July 2000. At the same time in 2004, the
  level was 27.7bn.
• ABS data estimates 1,321,245 low income people
  experience financial stress
• Cares service demand rose by 20 January to June
  2004 etcetc

4
And its 1,2,3 what are we fighting for?

• There has been no lack of articulation of the
  problem
• Continuing experiences in agencies like Care set
  out the nature of consumer detriment
• Even Governments have been able to clearly
  identify and describe the issues

5

• For the times they are a changin...
• The ACT amendment is the first (so far only)
  practical action by regulators
• requires credit providers to talk to their
  customers
• was delivered unanimously by a legislature
  frustrated by a lack of commitment and will to
  start addressing a national issue nationally

6

• And what did you see my blue eyed son?
• In contrast to industry warnings the ACT
  legislation did not end commerce
• Breaches have been identified and have generally
  prompted good outcomes, especially where
  detriment was evident
• Industry however continues to insist there is no
  problem, contradicted by its own data and
  continued evidence

7
To every thing turn, turn,turn, There is a season
turn, turn, turn

• There has been maybe enough consideration
• The ACT approach is not the entire answer, but it
  represents a start
• Or are we prepared to wait until an 80s style
  financial crisis hits the consumer credit market?

8
In the courtroom of honour, the judge pounded his
gavel,To show that alls equal and that the
courts are on the levelAnd that the strings in
the books aint pulled and persuadedAnd that
the ladder of the law has no top and no bottom

• (Bob Dylan - The lonesome death of Hattie
  Carroll 1964)