Contained within the Privacy Act 1988 and the Privacy (Credit Reporting) Code 2014 is a regime concerning the collection, storage and use of data relating to an individual’s credit’s history and credit worthiness information.

The Office of the Australian Information Commissioner recently conducted a review of the Code and made several recommendations for change, providing a timely reminder of the nature of the Code and the obligations on all parties involved in requests for credit reporting information.

The 17 June 2022 Federal Court of Australia decision in Zurich Australian Insurance Ltd v Atradius Credito Y Caucion S.A. De Seguros Y Reaseguros [2022] FCA 709 has made clear that care must be taken when bringing proceedings in the Federal Circuit and Family Court of Australia.

The Federal Court has made clear that the FCFCoA only has jurisdiction to hear and determine claims when power has been expressly given to it pursuant to legislation; and that absent such power, proceedings in that jurisdiction are a nullity.

On the contrary, the Federal Court has clear and undisputed jurisdiction arising in the exercise of Federal civil jurisdiction irrespective of any specific grant under legislation.

As anticipated, the new Commonwealth Government has indicated there will be regulation of the Buy Now Pay Later (‘BNPL’) industry.  In an announcement made last week, the new financial services minister, Stephen Jones, telegraphed the much anticipated and expected news.

Buy Now Pay Later (‘BNPL’) is a system of advancing funds to consumers for the purchase of goods and services, with repayments made in regular instalments. The consumer can take possession of the goods or services immediately.

Currently, BNPL advances are unregulated by consumer credit law, as no interest is charged on the advances. 

The National Consumer Credit Protection Act 2009 does not apply, and providers of BNPL finance are not required to meet the compliance requirements of that legislation.

Finance providers obtain a return on BNPL transactions via the collection of merchant fees (paid by vendors to the finance provider at the time of sale) and by recovery of fixed late fees by consumers if they default on their repayment schedule.