New Australian Consumer Law: national unfair contracts law
Assistant Treasurer Chris Bowen has announced that the national consumer protection law which was agreed between the Commonwealth and the states last year, will be fast tracked with a bill to be introduced by June 2009 and commencement on 1 January 2010.

Proposals for the law are outlined in a consultation paper (An Australian Consumer Law: Fair markets — Confident consumers). Submissions on the Australian Consumer Law are due by the 17th March 2009.

The consultation paper follows recommendations from a Productivity Commission review that there be a new consumer policy framework, comprising a single national consumer law and streamlined enforcement arrangements.

The reforms have three key elements:

• the development of a consumer law to be applied both nationally and in each State and Territory, which is based on the existing consumer protection provisions of the Trade Practices Act 1974, and which includes a new national provision regulating unfair contract terms, new enforcement powers and, where agreed, changes based on best practice in state and territory laws;
• the implementation of a new national product safety regulatory and enforcement framework, as part of the national consumer law; and
• the development of enhanced enforcement cooperation and information sharing mechanisms between national and state and territory regulatory agencies.

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Increase in disputes received by Financial Ombudsman Service
The Financial Ombudsman Service reports that it has seen a significant increase in the number of new disputes received. It experienced an average 45.4% rise across all divisions in the six months to 31 December 2008, compared with the same period in 2007. This reflected a substantial 85.5% rise in new disputes within Investments, Life Insurance & Superannuation, a 33% rise in General Insurance disputes and 17.8% in Banking & Finance.

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Bank account switching
On 1 November 2008, a new Account Switching Package came into effect with banks, credit unions and building societies now offering full listing and switching services to customers.

To assist customers who want to switch, financial institutions are now obliged to provide customers with a list of all their regular direct debits and credit from the last 13 months to help them re-establish those payments on the new account.

Customers can also call the relevant Ombudsman or ASIC's switching hotline on 1300 300 630 for advice .

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Mortgage duty update
Currently Victoria, Tasmania, ACT, NT, Queensland and Western Australia have no mortgage duty.

South Australia will abolish mortgage duty on 1 July 2009.

In New South Wales, mortgage duty has already been abolished on owner occupied housing and investment housing. But the abolition of the remaining mortgage duty has been deferred until 1 July 2012.

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New rules for Queensland mortgagee sales
The Queensland Property Law (Mortgagor Protection) Amendment Act 2008 has amended section 85 of the Property Law Act to require that, unless they have a reasonable excuse, mortgagees or receivers selling Queensland property secured by consumer credit mortgages must:

• adequately advertise the sale; and
• obtain reliable evidence of the property's value; and
• maintain the property, including by undertaking any reasonable repairs; and
• sell the property at auction unless it is appropriate to sell it in another way; and
• do anything else prescribed by regulation (there is nothing prescribed at this stage).

Failure to comply with the above can result in a maximum penalty of $20,000.

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