Lenders must exercise due care dealing with refugee arrivals
Monday, 31 March 2008
Lenders should exercise care when offering loans to the newest and most vulnerable Australians, the Parliamentary Secretary for Multicultural Affairs and Settlement Services, Laurie Ferguson, said today.
Mr Ferguson's call on lenders follows the ABC television documentary screened tonight that claims loans have been extended to recently arrived refugees who had little understanding of the repayment requirements.
‘I am concerned about reports of loans being made to refugees in their early settlement period,’ the parliamentary secretary said.
‘I will be writing to the relevant consumer advocacy groups around Australia who work with newly arrived migrant groups. They too have a keen interest in protecting consumers from exploitation and unfair contracts.
‘I would urge banks to be conscious that newly arrived refugees often have tight incomes and limited understanding of the Australian financial system. The Australian Government provides substantial assistance to refugees in this early period to ensure they are well-supported.’
Such measures include material support such as accommodation for their first four weeks in Australia, a package of household goods and access to Centrelink payments for which refugees are eligible. The Australian Government has recently expanded initial assistance under the Integrated Humanitarian Settlement Strategy (IHSS).
‘For eligible arrivals, the IHSS now covers the total cost of rent and utilities for the first four weeks after arrival,’ Mr Ferguson said. ‘Public transport tickets will also be provided to new arrivals. Orientation and information is also provided, with a considerable focus on understanding money, budgeting and financial services in Australia.’
This information is provided pre-arrival through the Australian Cultural Orientation program and is reiterated onshore by IHSS providers, and through Adult Migrant English Program (AMEP) classes and the onshore orientation DVD for African refugees.
‘The Get Wise and Your Money components of the AMEP cover paying the rent, bills and general money management,’ Mr Ferguson said.
‘However, I would expect lenders to act in good faith and ensure recently arrived refugees are made fully aware of, and able to meet, their responsibilities under any complex financial commitment – before they make it,’ the parliamentary secretary added.
Media contact: Khaldoun Hajaj - 0404 078 692
URL: http://www.minister.immi.gov.au
/parlsec/media/media-releases/2008/lf08021.htm
Last update: 13 August 2008 at 17:14 AEST