Fair Trading Minister, Linda Burney, today showed her support for the work of financial counsellors when she opened the Financial Counsellors’ Association of NSW (FCAN) Annual Conference and launched the Consumer Credit – Hardship Variation fact sheet.

Ms Burney said the work of financial counsellors was crucial in helping people manage their money and free themselves from the incredible pressures caused by spiralling debt.

“The Iemma Government has been working hard to enhance the funding pool available for financial counsellors,” Ms Burney said. 

“Over the last year, Fair Trading’s Financial Services Program has been increased by 85 per cent, from $2 million to $3.7 million. The additional funding will substantially increase the availability of financial counselling services in NSW. 

“A statewide co-ordinated training program for financial counsellors was recently advertised which will identify places of need and bring more accessible training to financial counsellors in NSW, particularly in regional areas. 

“Fair Trading is also working on a program to provide financial counselling to Indigenous communities and I will announce the highlights of this program later in the year.”

Ms Burney said proposals for providers to use responsible credit card lending practices have been developed and should be available for comment shortly.

“I urge all financial counsellors to participate in the public consultation process either through FCAN or independently.”

The Consumer Credit – Hardship Variation fact sheet is a new educational tool developed by the Consumer, Trader and Tenancy Tribunal (CTTT) to help people through the process of applying to vary their loan repayments when they encounter temporary repayment difficulties.

“Right now many people are struggling to pay their loans.  So it is important to let people know that there is an option available to vary repayments for a time by applying to the CTTT.”

In order to apply to the CTTT for a hardship variation, the applicant must meet certain criteria. The loan must fit within loan categories identified in the Consumer Credit Code.  These include personal, home and car loans, consumer leases and credit cards but exclude business loans.

“To be eligible for a hardship variation, you will have to show the CTTT a reasonable cause, like illness or recent unemployment, for your inability to pay. You will also need to show that if a variation order is made, you will be able to meet your new obligations.”

 The fact sheet will be available at CTTT Registries across NSW and downloadable from www.cttt.nsw.gov.au.

“If you find yourself in financial difficulty, seek help. Find out from the CTTT if you are eligible for a hardship application and visit a counsellor before it’s too late,” Ms Burney said. 

“I congratulate FCAN for their invaluable support for financial counsellors. I hope they all take advantage of the conference to network, swap ideas and explore new professional development and training options available to them.

“I also urge the finance industry to work more closely with financial counsellors to increase the options available for clients. This way they can better manage their debt problems.”

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