This joint submission with Consumer Action Law Centre and Financial Counsellors Australia made the broad point that for competition in the financial system to improve consumer outcomes, policy must be based on an understanding of how consumers actually make decisions. Consumers depend on the availability of safe products and fair sales practices to guide their decision-making. Effective regulation that empowers consumers to select appropriate products supports healthy competition, and ensures a level playing field amongst competitors.
In our submission we have provided examples of markets within the financial system where we believe competition has failed. This has led to poor consumer outcomes, particularly for vulnerable and disadvantaged Australians. Problematic sectors we have identified include insurance, credit cards, payday loans, consumer leases, mortgage broking, debt management advice and comprehensive credit reporting. We have argued that strong consumer protections and regulatory powers are necessary to ensure that consumers can benefit from increased competition in these markets.
