Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

Could I use this opportunity to place on the public record my thanks to the member for Blaxland for bringing this to the government’s attention. He did bring to my attention some time ago the practice that he refers to of businesses which rely on people being under significant financial stress. They approach those people, or advertise for those people to approach them, and offer to buy their house from them very quickly. In fact, one of the websites indicates that the transaction can take place in a matter of days, not weeks. This is of some concern to the member for Blaxland and to me. Any business model which is based on relying on vulnerable people—people at some considerable risk and stress—is a business model which concerns me and the government greatly.

I did refer the matter to the ACCC. The ACCC have advised me that there is some grounding to argue that the actions referred to would be regarded as unconscionable conduct under the act and they would take appropriate action. The problem, of course, is that there is a very narrow window of opportunity for taking that action. It is very important that people who may have entered into such a transaction but have not yet completed it contact the ACCC immediately because once the transaction is complete the options open to the ACCC are fewer. There is another thing that the ACCC have done in consultation with the government. We feel it is important that people under financial stress are educated and advised of their rights, and we have instigated a new page on the ACCC website known as ‘Managing your mortgage’, which gives advice to people, particularly about seeking further advice and not making any rash decisions when selling their house. If you sell your house quickly but at substantially below market value and allow somebody else to then onsell it at substantially more, it gets you out of a very short-term problem but does not solve the problem for you in the long term and can make your problems worse because you lose your house but still have considerable debt.

I am glad the honourable member for Blaxland has taken this opportunity for us to put this on the public record. In both his electorate and mine you see signs advertising this on every second telegraph pole. The honourable member for Blaxland has done a considerable internet search and done considerable research on the different businesses that do this. I must say there are some reputable ones. I do not want to categorise them all as disreputable. There are some businesses which do pay market value. But there are clearly some that do not, and the government will continue to take the appropriate action.

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