ASIC Bans Retailer From Centrepay for Targeting Vulnerable Indigenous Customers

The Australian Securities and Investments Commission (ASIC) has ordered a final stop for Coral Coast Distributors (Cairns) Pty Ltd on signing up customers into the government’s Centrepay credit arrangements in its Urban Rampage clothing retail stores. ASIC discovered these arrangements to be incompatible with the financial situations of Urban Rampage consumers, who are primarily low-income Centrelink recipients residing in remote First Nations communities. Centrepay arrangements mean the credit repayments for goods purchased are deducted from their Centrelink income before they receive their support payment. As such, this may prevent customers from acquiring living necessities. Further, without access to other forms of credit, these customers are at risk of financial difficulties and may even be currently experiencing financial distress....