The CCLC recently had the opportunity to comment on an Independent Review of the Centrepay Scheme. Centrepay is a voluntary free bill paying service for Centrelink recipients. The service helps people budget for essential living expenses like rent and utilities. It is quite popular among Centrelink recipients, and there are currently over 13,000 participating organisations that accept payments through Centrepay.
The CCLC believes Centrepay is an invaluable service provided for social security recipients. The financial counsellors as well as the solicitors in our Centre agree that Centrepay is an important financial self-management tool for disadvantaged consumers and we strongly support its continued operation. However, in light of its independent review we submitted some comments and concerns about the current administration of the Centrepay scheme.
Primary Concerns
- Centrepay should revisit its founding policy objective of assisting Customer financial self-management by enabling the payment of living expenses, which should only include certain priority goods and services.
- Retail/Consumer Lease companies for consumer goods should be removed from the Centrepay scheme or in the alternative be treated by Centrepay with increased scrutiny both in the application phase and necessary review of existing Participants.
- Other problematic Participants such as solicitors and funeral homes should be treated by Centrepay with increased scrutiny during the initial application phase as well as during subsequent reviews.
- An itemised list of all Centrepay deductions should be included on every Centrelink Statement provided to Customers whether generated automatically or after a customer request.
- There should be a better complaint mechanism for Customers and consumer advocates who have a grievance against a Centrepay Participant organisation.
- The amount of funds able to be deducted through Centrepay should not be capped.
- Centrepay should allow the deduction of mortgage repayments in limited circumstances.
