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The review of the EDR scheme jurisdiction over debt recovery legal proceeding complaints has resulted in no changes to the existing practices. The ABA and ABACUS provided input into the process to try and have changes made, however this did not alter ASIC's belief that the current process was appropriate.
Everyone should take note of the Phase II Credit reforms commencing 1 March 2013;
Sourced from ASIC's website;
The review confirmed the appropriateness of
the existing policy settings and reinforced the useful role
ASIC-approved EDR schemes and their debt recovery legal proceedings
jurisdiction plays in assisting consumers and financial investors who
may benefit by a hardship variation, need more time to sell their home,
may have been granted loans in breach of responsible lending
requirements or face debt collection issues (i.e. being pursued for
ASIC Commissioner, Mr Peter Kell said, ‘This review has helped to focus attention on a number of areas where the dispute resolution system could be enhanced, beyond specific regulatory guidance. All participants in the system have a role to play in making it work more effectively – not just EDR schemes but also licensees who are members of the schemes and consumer representatives who advise consumers. We encourage participants to consider making some changes to their current practises to improve the effectiveness of the system’.
Opportunities for improvement include: