From next week the Australian Securities and Investment Commission ( ASIC ) will have the power to disallow the " exit fee " strategy used by the banks to lock people into mortgages.
It seems strange that ASIC should only be permitted to dispense justice in nominated sectors of the economy. Surely any unfair deal in the finance sector should be within ASIC's brief -- to investigate and remedy.
These limitations seem to be spread widely across all those institutions that are legislated to guard the public from rapacious conduct by industry.
Another example concerns the Telephone Industry Obudsman ( TIO ). For some unknown reason the TIO is limited to only investigating complaints that are less than twelve months old.
There have been instances where overcharges go back years - but the TIO can only order a refund on the last twelve months of such robbery.
Control of exit fees is a first step - but it is time the brakes were released to allow all regulatory authorities to deal with any form of banditry !
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