CCLS was pleased to contribute to The Treasury’s review of the compensation scheme of last resort (CSLR). The joint submission was made by:
- CHOICE
- Consumer Credit Legal Service
- Financial Rights Legal Centre
- Super Consumers Australia
- Consumer Action Law Centre
- Financial Counselling Australia
The submission highlights the positive impact the CSLR has had on people in difficult financial situations due to professional misconduct.
The key recommendations included:
- That the Government reaffirm the important role of the CSLR by endorsing its continued role in Australia’s financial services dispute resolution framework.
- That the Government consider all options to expand the ability of the CSLR to recover compensation paid in cases relating to medium or large companies from those responsible for the conduct, including related companies.
- Defining a “reasonable payment plan” so that unjustified long term payment plans cannot be used to delay compensation payouts via the CSLR when appropriate.
- That the Government increase the cap on compensation payable under the CSLR so that it is line with the AFCA compensation cap.
These measures are crucial for creating a fair and safe financial system, for all Australians.
You can read the full submission here