collection house limited financial hardship – corporate social responsibility john brady solicitor...
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Collection House LimitedFinancial Hardship – Corporate Social Responsibility
John BradySolicitor Director
Jones King Lawyers
Financial Hardship – Corporate Social Responsibility
• Corporate Social Responsibility – Financial Hardship
• Look at what it is
• Looking back
• Regulation
• Credit industry
• Change in attitude and actions
• Gone far enough quickly enough
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Financial Hardship – Corporate Social Responsibility
• Looking forward
• Lessons from the past
• Why make changes?
• How do you make changes?
• Look at a policy
• With what effect?
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Financial Hardship – Corporate Social Responsibility
Financial Hardship
...unable, reasonably, because of illness, unemployment or other reasonable cause, to discharge their financial obligations under their contract with the Supplier and the Customer reasonably expects to be able to discharge those obligations if payment and/or Service arrangements were changed.
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Financial Hardship – Corporate Social Responsibility
Corporate Social Responsibility
A balanced approach for organisations to address economic, social and environmental issues in a way that aims to benefit people, communities and society.
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The last 30 years
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The last 30 years
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The last 30 years
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The last 30 years
Please note.
This is not a real investment.
Contact 1300 300 630
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ASIC and ACCC
ASIC 1998 2009 Increase
Budget $137.5 million $314.5 million 129%
Fees $326 million $552 million 69%
Staff 1,152 1,817 58%
Complaints 3,798 13,633 259%
Prosecutions 199 724 264%
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ASIC and ACCC
ACCC 2000 2009 Increase
Budget $69 million $134 million 94%
Staff 372 695 86%
Complaints 20,131* 74,750 271%
Pursued 4,137 15,360# 271%#
* There were in addition about 60,000 GST related complaints in 2000# Estimated
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ASIC and ACCC
ASIC & ACCC 2000 2009
Budget $200 million $500 million
Staff 1,500 2,500
Complaints 25,000 100,000
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Looking forward
• Treasury consultation
• Credit market
• Recession and GFC
• Bank’s reaction
• Quick enough?
• Credit cards
Regulatory Impact Statement
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Looking forward
• Credit card changes
• No over the limit fees unless agreed
• Allocation of payments to high % first
• Application of % consistently
• Increased limits not to be offered unless...
• Consumers have a say in available credit
• Application forms to contain features
• Statements contain more information
• Agreed method of determining approvals**14
Looking forward
• Other industries
• Telcos
• Hotels
• The lessons?
• Creeping Regulation
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Corporate Social Responsibility
• What needs to be done?
• Steps
1. Identify people affected
2. Identify what needs to be taken into account
3. Prioritise and balance competing interests
•Facts?
•Assumptions?
•Alternatives?
•Justification?16
Corporate Social Responsibility
• Collection House Policy
• Social Justice Guideline
• Hardship Policy
• Corporate Social Responsibility
• Social Justice Guideline
• Coverage
• General statement
• Specific matters
• Change17
Financial Hardship – Corporate Social Responsibility
• Hardship Policy
• Legislative requirements
• Includes moral imperatives
• Application widened
• Guidance – what is hardship
• When concessions apply
• Where rules don’t fit, don’t give up
• Mechanical matters
• Changing the policy.18
Financial Hardship – Corporate Social Responsibility
• Effect?
• Summary
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Collection House Limitedwww.collectionhouse.com.au
John BradySolicitor Director
Jones King [email protected]
Ph: 07 3225 0023