Senate debates

Tuesday, 27 November 2012

Bills

Privacy Amendment (Enhancing Privacy Protection) Bill 2012; In Committee

4:43 pm

Photo of Penny WrightPenny Wright (SA, Australian Greens) Share this | Hansard source

by leave—I move Greens amendments (1) and (3) together:

(1) Schedule 2, item 69, page 65 (after line 27), after paragraph 6Q(1)(b), insert:

(ba) at least 30 days have passed since the day on which the notice was given; and

(3) Schedule 2, item 72, page 102 (line 35), omit "a reasonable period has", substitute "at least 30 days have".

These amendments relate to the time period after which notice is given before a default credit listing can occur. The Australian Greens are of the view that a default listing should not occur until at least 30 days after a default notice has been given. In practical terms that gives a borrower sufficient time to receive the notice, to become aware of the fact that there is an amount owing—there may be vagaries of the post that interfered with the delivery of that notice—to contact the credit provider and/or to try to rectify the default before a listing can be made. This is consistent with other credit laws.

In some cases the listing may arise out of an event of which the borrower is not aware—for instance, if there is a bank error—and it will give them time to become acquainted with that and to do something to rectify it. This was a recommendation that was made by the Consumer Credit Legal Centre of New South Wales, which submitted that the current provisions in the bill essentially enabled a credit provider to list a default immediately after issuing written notice to an individual. That is clearly procedurally unfair as it is the notice itself that is important in notifying the consumer that there actually is a default. It is more than possible to be unaware of the default where, for instance, it is out of the control of the borrower—as I said with the bank error.

The Consumer Credit Legal Centre has significant expertise in providing consumer assistance advocacy and representation and it sees how these sorts of legal provisions work in practice and how they can impact on vulnerable Australians. I think it is important that we respect this expertise and avoid unintended consequences by applying on-the-ground knowledge, and it often speaks on behalf of consumers. The Consumer Credit Legal Centre recommended that the bill should be amended to require 30 days to have elapsed from the date for the written notice before listing can occur. The submission of the Australian Communications Consumer Action Network also suggested that a listing should not occur until the credit provider had made reasonable attempts to contact the debtor and provide a specific warning regarding the default listing.

We recognise the practical reality for consumers who face financial strain and we think that it is important that they are provided with sufficient notice about overdue payments and the consequences of failing to pay such overdue payments. For that reason we support the recommendation by the Consumer Credit Legal Centre that the bill should be amended to require 30 days to have elapsed from the date of the written notice before a default listing occurs.

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