Families To Suffer Due To Forecast Changes To Consumer Leasing Laws

500,000 families to suffer due to forecast changes to Consumer Leasing laws

380 small businesses to close their doors

 

The Consumer Household Equipment Rental Providers Association (CHERPA) condemns today’s federal government announcement to dramatically change Consumer Leasing laws.

CHERPA represents 90% of the Consumer Leasing industry and is working hard to eliminate rogue operators and enforce a stringent industry code of conduct.

CHERPA predicts today’s announcement by the Minister for Revenue and Financial Services Kelly O’Dwyer will see 380 Mum and Dad businesses close down and 1500 jobs lost over the next six months, representing  90 percent of the consumer leasing industry.

500,000 working families could also lose access to basic electrical appliances, such as fridges, washing machines and televisions, many of those from regional, city fringe and suburban Australia.

CHERPA CEO Andrew Gresswell says Minister O’Dwyer’s announcement is shameful and not becoming of a Liberal/National coalition which supposedly supports small businesses.

”We have actively tried to engage the government during the review process and have been ignored.  Today’s decisions are based on a secret report commissioned by ASIC and a secret government decision making process, which will see businesses close down and families go without,” he said.

“The Minister is making this decision a few days before going on holidays and has no alternative plan.  How will this Government help low-socio economic families access electrical goods once the whole consumer leasing industry is wiped out? This is just another Turnbull Government stuff up.”

Mr Gresswell is calling for today’s recommendations to be overturned by the Minister for Small Business Michael McCormack, who has so far been silent in his support of the industry.

Rosemary Layfield’s grandmother from Pakenham in Victoria’s south-east has been on the disability support pension all of her life.  She fosters children and has had 14 consumer leasing contracts since 2007.  Mrs Layfield says consumer leasing makes life possible.

“I’ve never had a problem with consumer leasing.  My family has suffered a lot and has never been given anything. Consumer leasing allows me to give my family what they need when they need it and have a good quality of life.”

Interviewees:

CHERPA CEO Andrew Gresswell

Mrs Rosemary Felsenthal-Layfield – case study

Media contact:

Tony Nicholls – 0400 646 010/tony@goodtalent.com.au