Modernising the Fair Trading Act to minimise further harm

FinCap has made a submission to Parliament's Finance and Expenditure Committee as it considers amendments to the Fair Trading Act. 

The Fair Trading Amendment Bill aims "to ensure that the Act remains fit for purpose as business practices and digital markets evolve, strengthen deterrence of unfair trading conduct, support appropriate consequences for breaches, and enable efficient and effective enforcement."

FinCap strongly supports this move and proposes amendments to the Bill so that it will better achieve the objectives through settings that address the unconstructive, harmful debt collection conduct that financial mentors see far too often in their day-to-day work. 

"A person is showing up at the door with a direct debit form, they refuse to leave until it is signed.
The lowest amount that they will accept is $15 and at times [the clients] haven been intimidated and [have] been feeling quite scared because the person won't leave..."

[This quote is from a 2025 radio interview with a financial mentor on debt collection issues.]

To enable communities to leave the cost of living issues behind them, the Fair Trading Act must perform better. 

We recommend that the Government conduct a wider, thorough review and public consultation of the FTA beyond the piece that was rushed through under urgency to reach this Bill. 

You can read our submission here to see further information on these comments and broader recommendations for modernising the regulation of debt collection.