In this joint submission – Consumer Action and Financial Rights strongly support many elements of ASIC’s proposed intervention. A deferred sales model for add-on insurance, along with complementary obligations and a ban on certain mechanical risk products will dramatically reduce the ongoing significant consumer detriment.
We are, however, strongly opposed to ASIC’s proposal that the deferral period begins by the consumer merely making an application for finance. Our primary recommendation is, therefore, that the deferral period start after the car is purchased, finance approved, and most importantly, delivery of the car. Without this change, pressure sales will remain – defeating the very purpose of this intervention.
