Bankvictims CPI Submission to Royal Commission

In my article, ‘ENOUGH IS ENOUGH! IT’S TIME FOR US TO ACT!’ I put forth the proposition that what the consumers in this country need to reassure themselves is a 'Government Consumer Protection Insurance Scheme' that will insulate them from harm if they fall prey to rogue banks and financial advisers.

Let’s face it! What we have in this country at the moment is a paradox. Our Parliament has enacted a glut of consumer laws, but don’t have a government department that consumers can go to for compensation when those consumer laws have been violated? It’s not as if there isn’t a precedent. The government already looks after those that have disabilities with its ‘National Disability Insurance Scheme’ (NDIS) and also those with health issues (Medicare). Why should the consumers in this country that have been injured by those in the financial sector deserve less?

Anyone that has suffered a loss because of a wrongdoing that an institution or an individual in the financial sector has committed against them will appreciate the difficulties of obtaining compensation under the current system. The path to compensation is strewn with obstacles that hinder rather than help claimants. Having enough money to sue is one; the other is having to wait an inordinate amount of time (many years in some cases) before you know whether your claim will be settled if it ever gets that far. As a consequence, many with a genuine complaint receive nothing back in the end. Others obtain a fraction of what they lost.

A government consumer protection insurance (GCPI) scheme offers consumers a security blanket against individuals or institutions in the financial sector that might deal with them inappropriately. In such circumstances, if a GCPI scheme, along the lines I have suggested, were in place, a consumer’s path to compensation would be speedy, cost free and certain. The claimant would not be involved in dealing with the offender or offenders. Rather, this would be taken care of by the government body that extended the consumer protection insurance cover to that consumer. It’s a win-win situation for all consumers insured in this way.

We, Russell Cousins (The Director and Founder of Bank Victims Pty Ltd office@bankvictims.com.au) and I, have lodged our joint submission to the Royal Commission recommending a  GCPI scheme. Such can be downloaded below.