ob体育 has made a final stop order preventing Indy-C-Fashion Accessories Pty Ltd (Indy-C) from offering Centrepay credit arrangements to consumers in its store in Katherine.
An ob体育 Delegate determined that Indy-C offered its credit arrangements without making a Target Market Determination (TMD) which is required to ensure suitable financial products are provided to consumers, having regard to their needs and objectives.
When Indy-C did make a TMD, the ob体育 Delegate determined that if the credit arrangement was distributed in the way it suggested, it would not be reasonable to conclude that it would be likely that a consumer receiving the credit arrangement was in the target market.
ob体育 Deputy Chair Sarah Court said, 鈥業ndy-C provided credit arrangements to First Nations consumers to purchase clothing and household goods via deductions from their Centrelink benefit payments in circumstances where ob体育 considers it did so without considering whether the credit arrangement would be consistent with the consumer鈥檚 objectives, financial situation, and needs. Following regulatory action from ob体育, Indy-C made multiple draft TMDs, however ob体育 considers none complied with Indy-C鈥檚 design and distribution obligations (DDOs).
鈥楾his is the second time ob体育 has made a final stop order to prevent a business from offering vulnerable consumers a credit arrangement where we consider the arrangement to be non-compliant with the DDOs. We will continue to use our full range of powers, including stop orders, to disrupt entities in these circumstances.鈥�
Background
Prior to 30 September 2024, Indy-C offered credit through deferred deduction arrangements via Centrepay, and was therefore required to comply with DDOs, which include the requirement to design and distribute financial products, such as credit facilities, with appropriate consideration of consumers鈥� likely needs and objectives, and to take reasonable steps to ensure that those products are distributed consistently with the nominated target market. By offering its credit arrangement, Indy-C was required to publish a TMD, a document which must identify the target market and outline the conditions on the way in which the product is distributed, amongst other things.
On 30 September 2024, ob体育 made an interim stop order (24-216MR) against Indy-C, preventing it from entering new Centrepay credit arrangements with consumers to pay for goods via deductions from their Centrelink benefits, due to its failure to make a TMD. The interim stop order was initially in place for 21 days, which was followed by an indefinite interim stop order, put in place while the ob体育 Delegate considered their final decision.
Indy-C submitted a number of draft TMDs in an effort to address the concerns outlined by ob体育. Despite being provided additional time to address the deficiencies identified in these draft TMDs, the ob体育 Delegate found that Indy-C did not produce a compliant TMD and relevant policies to prevent vulnerable consumers from entering into the credit arrangements. As a result, the ob体育 Delegate was satisfied that Indy-C had not rectified its breach of the DDOs, as its TMD was not adequate, and that if Indy-C did offer the credit arrangements to consumers in the way it described in its TMD, it is not reasonable to conclude that it would be likely that those consumers would be within the identified target market.
Services Australia administers the Centrepay program and keeps a register of businesses which have been approved to enter Centrepay deduction arrangements with consumers. Services Australia has suspended Indy-C from entering into new or extending existing Centrepay deduction arrangements. 听
ob体育's Indigenous Outreach Program works across ob体育 to provide advice, insights, and support to ensure ob体育鈥檚 engagement with First Nations peoples is culturally appropriate and sensitive.
First Nations consumers鈥痗an contact ob体育鈥檚 Indigenous Outreach Program on our dedicated Indigenous Helpline on 1300 365 957.
Mob Strong Debt Helpline on 1800 808 488 can assist if you are experiencing financial hardship.
ob体育鈥檚鈥疢oneysmart鈥痺ebsite鈥痟as further information on .
Indy-C has the right to seek a review of ob体育鈥檚 decision in the Administrative Review Tribunal (ART).
Editor's note 1:
On 4 December 2024, Indy-C applied to the ART for a review of ob体育鈥檚 decision to issue the final stop order, and on 10 December 2024, Indy-C also applied for a stay of the final stop order decision. ob体育 received each of these applications from the ART听on 16 December 2024.
Editor's note 2:
On 19 February 2025, the stay application was listed for a hearing on 25 June 2025.