Financing Australia's Future
The Australian Finance Industry Association (AFIA) is the leading industry advocate for Australia’s finance sector. AFIA represents more than 100 providers of a consumer, commercial or wholesale finance that operate across Australia.
Our members provide the finance that Australian families, business and large corporate entities need to operate and grow.
Formerly known as the Australian Finance Conference, AFIA supports the businesses and brands that enable Australians to achieve success by Financing Australia’s Future.
AFIA introduces the National Car Rental Code of Practice
The Australian Finance Industry Association (AFIA) – Fleet & Rental Division has today released a new national Car Rental Code of Practice. AFIA Rental Group members make up a significant proportion of the Australian car rental industry and have committed to delivering enhanced protections for their customers.
As the Australian body for car rental companies, AFIA developed the Code to provide greater transparency and enhanced consumer confidence around car rental practices, on a national scale. The Code ensures an industry standard is set and met on a wide range of issues including: transparency of pricing and credit card charging practices, rental contract terms and damage assessment and billing. This is supported by a clear process to allow customers to raise complaints with our members where they should be resolved in a timely and fair manner. On those occasions where customers may want further consideration following a member’s decision, a further conciliation process is provided.
Mortgage broking industry takes lead on good customer outcomes
Representatives of Australia’s mortgage broking industry have prepared a landmark reform package that will improve consumer outcomes and confidence in mortgage broking.
The reform package is the result of unprecedented engagement between industry bodies, lenders, mortgage brokers and their representatives, aggregators, introducers, and consumer groups, who have worked together since May 2017 as the Combined Industry Forum, and follows consultation with regulators and Federal Government.
The industry has agreed on six principles that will be implemented to ensure better consumer outcomes and improved standards of conduct and culture, while preserving competition in mortgage broking:
- The standard commission model will avoid financial incentives that encourage consumers to borrow more than they need or will use, for example by basing commissions on facility draw down net of offset;
- Volume-based and campaign-based commissions paid by lenders and aggregators are recognised as raising potential conflicts of interest and poor customer outcomes and are expected to cease;
- Non-monetary benefits will only be given based on a balanced scorecard and good customer outcomes, and benefits given by lenders will be capped;
- Ownership models and commercial relationships will be made clear on all marketing materials, including websites, where ownership is greater than 20 per cent, so consumers have the right information to make informed choices;
- ASIC and consumers will be given clearer information on where loans are written, commissions paid and interest rates, to increase transparency and accountability in the industry;
- The industry will introduce an improved Governance Framework that monitors for, and identifies risks, and requires the industry to take action and continuously improve where issues are identified.
A copy of the joint industry media release can be accessed here.