Response to Today Tonight Story
Response
Foresters ANA Mutual Society is a
non-profit company that works with groups and organisations to assist
them enhance their financial sustainability and independence. Foresters
ANA has also worked on microfinance projects such as small-scale mutual
aid funds and savings and loans groups. This work has largely been put
on hold at present due to a lack of resources, although plans are in
place to re-commence the work in the near future.
In Queensland,
the Consumer Credit Code, under the Office of Fair Trading, is
currently being reviewed through a process being led by the Queensland
Attorney General’s department. This process is investigating the
possibility of an interest rate cap. Within this context, Foresters ANA
Mutual Society has been talking with state governments and community
organisations to develop new safe, affordable and accessible finance
options - a growing area of concern and focus in Australia.
Savings
and loans circles are community-based and involve a group of local
people who know each other and/or have a common goal, who are willing
to work together to set up the group. The groups pool their
contributions and eventually use the pool that has been creatred to
provide eachother with interest-free loans. The loans do not come from
Foresters ANA, but from within the common pool of money created by the
groups' combined savings. The groups effectively provide loans to their
own members. It is a true mutual aid activity. Savings and loans
circles take time and energy to establish and to become successful, but
the effort involved has created some truly inspiring results, like
improved financial situations, more friends, better community
connectedness, for people who had previously been in dire financial
difficulties.
Once
groups are established and operating in their own right, Foresters ANA
does not continue to have a working relationship with these groups. We
keep in touch, but the groups are self-operating and self-sustainable.
The
existing groups are not open to new members. Most groups choose to
admit new members through their own contacts within their own
communities. This is a reflection of the community development nature
of the groups and the work that goes in to establishing them by their
members.
If
you are genuinely interested in the idea of savings and loans groups
and may be interested in working towards establishing a group in your
community, we do have some information available that you may find
useful. Please feel free to contact us on (07) 3210 6772 if you would
like to receive copies of this information.
People
experiencing difficulties with credit and debt might find it useful to
check this website, which outlines what the Consumer Credit Code is and
what your rights are: www.creditcode.gov.au
For
further information about the Consumer Credit Code and its review, see
the media releases and documents listed on the Queensland Office of
Fair Trading website: http://www.fairtrading.qld.gov.au/oft/oftweb.nsf/Search?SearchView=&Query=Consumer+Credit+Code; or call them on 13 13 04.
More information can be found on the Qld Attorney General’s website: http://www.justice.qld.gov.au/ourlaws/public.htm
To
make your opinions known about the need for more safe, fair and
accessible credit options for low income people please write to the
Queensland Attorney General and your local member. Don’t forget to
mention Foresters ANA Mutual Society.
No Interest Loans Schemes (NILS), are coordinated and established by the Good Shepherd Youth and Family Support Service in Victoria, with the support of NAB: http://www.goodshepvic.org.au/. These loans are only for buying essential household goods, eg. fridge, washing machine.
People
who are experiencing financial difficulties related to debt can receive
free advice from financial counselors, which can be found within the
directories below.
Commonwealth Financial Counselling (CFC) Directory: http://www.facsia.gov.au/internet/facsinternet.nsf/family/cfcp-cfcp_directory.htm
Financial Counselling Associations:
QLD: http://www.fcqn.asn.au/Lists/Find%20a%20Financial%20Counsellor/Standard%20View.aspx
NSW: http://www.financialcounsellors.asn.au/find.htm
VIC: http://www.financial-counselling.org.au/
SA: (for rural areas) http://www.rfcssa.org.au/
WA: http://www.fcrp.org.au/documents/CopyofFCLISTNOVEMBER2006.DOC
Back to News