There were lots of findings brought out by the Royal Commission yesterday but it will take a while to see what impact it will have on the banks to treat people on low incomes better. Low income earners have for years felt neglected by the banks to take into account their personal situations, slugging them when they are down with additional payments and surcharges for late fees & advance withdrawals.
Car Dealers Highlighted
Car dealers would no longer be exempt from national consumer credit protection laws. This means they would then face a cap on commissions for add-on insurance sales. Insurance add on sales add up to a lot of money for the finance arms of any local new and used car dealership. It means that you might not get as hassled in the future to take out dealer insurance. You are able to shop around for the best price yourself.
Funeral Insurers No Longer Get Exempted
The exclusion of some forms of funeral insurance from the definition of ‘financial product’ will be brought to an end. Funeral insurance provided by large corporations came under fire during the Royal Commission, particularly in regards to aboriginal people being especially targeted to sign up to a funeral insurance policy that they little understood.
“All forms of funeral insurance should be subject to the same regulatory regime and supervision. This is particularly important given the concerns that I hold about the value of these types of products.” said Mr Hayne, who was in charge of the Royal Commission.
More Support for Community Legal Centres, Financial Counsellors
Mr Hayne highlighted the important role that community legal centres and financial counsellors play in helping a lot of Australians with their personal situations. Community legal centres and financial counsellors frequently struggle with demand.
Time will tell if the Royal Commission actually helped low income earners and Australians in general.