Message from the Ombudsman

ASBFEO Newsletter – Issue No. 15

We’ve collaborated with FinTech Australia and to release a report outlining how transparency and disclosure within the fintech lending industry can be improved. This report will inform the fintech industry and small business borrowers of the steps being implemented to allow comparison of products and ensure loan agreement contracts comply with the unfair contract terms legislation.

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has started and will include a focus on small business. This gives small businesses that have experienced questionable conduct by the banks the opportunity to have their say. An online form is available on the Royal Commission website, where any small business can make a submission.

Fantastic news about the establishment of the Australian Financial Complaints Authority (AFCA). With the legislation now passed, AFCA can start to accept complaints from November 2018. This means small businesses are one step closer to be able to seek resolution of a dispute where the credit facility is up to $5 million. They’ll also be able to potentially receive compensation of up to $1 million.