On 17 October 2018, the Senate resolved to refer certain credit service providers, including payday lenders, fintech “buy now, pay later” providers and credit repair agencies to the Senate Economics References Committee for inquiry. Under the proposed terms of reference, the inquiry will look at:
- the impact of the service providers on individuals, communities and the broader financial system;
- whether current regulation of the service providers meets community standards and expectations;
- whether reform is needed to address harm being caused to consumers; and
- the present capacity and capability of the financial counselling sector to provide financial counselling services to financially stressed and distressed members of the community.