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First Nations retailer to fight ASIC on Centrepay
A retailer for First Nations people in remote communities says it will appeal ASIC’s order to indefinitely stop Centrepay services.
Naomi Neilson
From late February, customers of Urban Rampage stores, owned by Coral Coast Distributor (CCD), have been prevented from entering agreements to pay on credit through Centrepay deductions.
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The Australian Securities and Investments Commission (ASIC) made the interim stop order due to concerns that customers are low-income recipients of Centrelink benefits, are residing in remote Indigenous communities, and do not have access to forms of credit.
Deputy chair Sarah Court said CCD’s target market determination does not “adequately detail eligibility criteria”.
“More broadly, ASIC is concerned that this deficiency reflects CCD’s inability to ensure that this kind of credit facility is suited to the needs of consumers in its target market,” Court said.
CCD said ASIC refused to tell it when a final decision will be made and is intending to take it to the Administrative Appeals Tribunal.
The retailer said more than 80 customer complaints have been made about the stop, and a petition has begun circulating.
On behalf of CCD, lawyer Leon Loganathan said the order was “unfair and appears discriminatory and paternalistic”.
“It suggests that First Nations people can’t manage their money and make good financial decisions,” Loganathan said.
“Other non-Indigenous Australians have many ways to buy now and pay later. First Nations people on benefits don’t.”
Loganathan added the company’s business is “almost entirely reliant” on the Centrepay system.
“It follows that the interim decisions are devastating to our client’s ability to continue operating,” Loganathan said.
Loganathan said ASIC has until the end of 4 April to respond to CCD’s requests for information, or it will commence proceedings.
