Australian Labor is set to unveil a proposal to allow debt arbitrators to arbitrate disputes in Australia’s market, under new legislation.
According to the Australian Competition and Consumer Commission (ACCC), debt arbitration is currently prohibited under the Competition and Marketing Act 2000.
The law also requires a court to consider the interests of consumers and other relevant parties before making a decision, with consumers being the most vulnerable.
The ACTC proposed a change to the law to allow for debt arbitrations in Australia.
The Federal Government’s decision to allow the legislation to become law will allow arbitrators in debt arbitration to take decisions based on a consumer’s debt amount and not their position in a court case, the ACTC said in a statement on Monday.
The changes will also allow arbitrator to make final decisions based not only on the consumer’s personal debt, but also the debt owed by other parties in the dispute, the statement added.
The ABC understands that the government will publish a draft law later this month.