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Writer's CD submission to RBA sent 8 Dec 2011 Intro Letter to Slater & Gordon Submission Letter to Slater & Gordon Defined Terms and Documents
5 Ronald Ave 0434 715.861
Insert
an enclosed CD in a Windows PC
which will open at this IntroLetterToSlater&Gordon.htm -
click on the numerous URLs therein Mr. James Higgins 03 9602.6053 Slater & Gordon JamesHiggins@SlaterGordon.com.au 485 La Trobe Street,
Melbourne, Victoria 3000
Class Action - * representing Eligible Plaintiffs - (A) many have suffered from Numeracy And Literacy Discrimination by some Credit Card Issuers that have engaged in Unconscionable Conduct; (B) are Financially Uneducated And Vulnerable Australians - identified in Productivity Commission and ABS published reports - drawn from approx. 20% of Australian Credit Cardholders; (C) have been charged Usurious Unsecured Personal Loan Interest Rates using Multiple Credit Cards and have paid Material Interest And Fees * against the Reserve Bank of Australia ("RBA") for breaching its Statutory Duty and its Fiduciary Duty by not complying with its Parliamentary Bestowed Mandate - (i) to ensure "...the economic prosperity and welfare of (all of) the people of Australia"; (ii) to not merely ensure "...the economic prosperity and welfare of..." the Financially Educated which would invariably include employees of the RBA; and (iii) by condoning Unconscionable Conduct by some Credit Card Issuers as evidenced in Labyrinth of ‘Concealed Spiders’; (iv) by abrogating its Parliamentary Bestowed "extensive powers" to "...gather information from a payment system or from individual participants" by not requiring Credit Card Issuers to provide regular, quantified financial reports to Australia's Primary Credit Card Regulator that details the sources of Interest & Fees Revenue to ensure that Financially Uneducated And Vulnerable Australians are not suffering Numeracy And Literacy Discrimination by being charged Material Interest & Fees at Usurious Unsecured Personal Loan Interest Rates and that Financially Educated are also contributing to the material cost of enjoying a Line/s Of Credit from Credit Cards (v) by periodically releasing detailed financial reports, written by a small cohort of RBA employees, on developments in the credit card market which overplay the share of revenue sourced from Merchant Service Fees on the 'wholesale' side of Credit Cards and downplay the reliance upon Interest And Fees Revenue on the 'retail side' of Credit Cards The Reserve Bank brought credit card schemes in Australia under its regulatory oversight on 12 April 2001 Will Slater & Gordon review the Writer's Submission Letter which sets out the justification for a Class Action against the RBA representing Eligible Plaintiffs? The Writer worked for CBA for 37 years prior to retiring in 2007. In late 2011, the Writer commenced emails with Ms. Sharon van Etten, Public Relations Officer, Media & Public Relations Office, Reserve Bank of Australia which informed that in his career at CBA he had dealings with the RBA's Note Issue Dept in the late '70s and in retirement he sought data from the RBA on the percentage of credit card users who repay their outstanding indebtedness in a particular month, and a break-up of those who do not. The RBA did not respond to his extensive submission (on a CD ROM) dated 8 December 2011 to Ms. Sharon van Etten which behoved the RBA's Board to - (i) draw upon its extensive powers to regulate Credit Card Issuers so that the User Pays Principle applied by implementing the Writer's recommendations therein [set out in B)(a) and B)(b)] "for the economic prosperity and welfare of (ALL) the people of Australia" and not merely for "lucky" Australians who are proficient "..to participate in a knowledge-based economy.." described by the Productivity Commission as "...possessing level 3 or above numeracy and literacy skills...." and Financially Educated Credit Cardholders with level 3, level 4 and level 5 Financial Literacy making no meaningful contribution to the high cost of the 'lines of credit' that they enjoy with their Credit Card Products, as acknowledged by the RBA in its below extract from its Consultation Document titled Executive Summary - Reform of Credit Card Schemes in Australia: RBA's "A Consultation Document" – December 2001 that notes under point 6 of 'Introduction':
(ii) inform the Federal Government, pursuant to section 11 "Differences of opinion with Government on questions of policy" of The Reserve Bank Act 1959, as amended, that the RBA's monetary and banking policy needs to regulate Credit Card Issuers to apply the equitable User Pays Principle so that all Credit Cardholders contribute to the cost of their Line of Credit which can extend up to 55 days. National Credit Reform: Enhancing Confidence and Fairness in Australia’s Credit Law dated July 2010 notes: Transactors and Revolvers. Transactors pay their outstanding balances on time and therefore incur no interest charges. Revolvers tend to carry (or revolve) debt, making minimum repayments or slightly more, and thus maintain a level of continuing debt. Due to their outstanding balances and repayment habits, revolvers pay more interest, and tend to have higher default rates. As at November 2009, 278 different cards from 69 institutions were available to consumers in Australia. Interest rates on credit cards range from 9.9 per cent to over 20 per cent, which is substantially greater than the average variable home loan rate (currently about six to eight per cent)."Credit Card Products are both ubiquitous and unique. Almost all essential items purchased in society have a price which is the same no matter if you are wealthy or poor. A loaf of bread, a carton of beer, a gallon of petrol command a price that the purchaser, rich or poor, pays. Approx. 60% of Credit Cardholders, those that are Financially Educated with level 3, 4 and 5 Financial Literacy, make almost no payment for enjoying a Line/s of Credit for up to 55 days. The remaining 40% circa who are Financially Uneducated And Vulnerable Australians, with level 1 and 2 Financial Literacy, pay the operating costs and generate the profits in Interest And Fees Revenue, of Credit Card Issuers. Hence, one third of Credit Cardholders pay the cost of almost two thirds of Credit Cardholders enjoying a Line/s of Credit for an ave. $2,923 for between 45 days and 55 days before those "almost two thirds" pay for their Purchases. How can such an inequitable pricing mechanism exist? Because of Unconscionable Conduct by too many Credit Card Issuers as exampled in a Labyrinth of Concealed Spiders in marketing a complex*** product, 70+ pages of fine print 'Terms & Conditions' booklets - too often with loss of Interest Free Period for up to three months for failing to pay the Closing Balance in full by the Payment Due Date, gimmicky loyalty points that are almost worthless, Usurious Unsecured Personal Loan Interest Rates Charged On Many Credit Cards) and an inept conflicted financial regulator with "extensive powers" to "...gather information from a payment system or from individual participants" under statutory authority that will not draw upon those "extensive powers". *** extract from the Productivity Commission's Staff Working Paper Links Between Literacy and Numeracy Skills and Labour Market Outcomes dated Aug 2010 included a bullet point summary titled "Key Points" which includes:
The majority of Credit Cardholders in Australia enjoy 'up to 42 days' Line of Credit for a mode Card Limit of say $10,000 at virtually no annual cost because they pay their previous months Closing Balance by the Payment Due Date. Line of Credit explains that the vast majority of these Credit Cardholders make multiple Purchases each month, sometimes several Purchases in a day, and do not pay a single cent on those Purchases for 'up to 42 days'. If a Credit Cardholder pays off its Closing Balance by the Payment Due Date, the Cardholders pays no interest for its 'up to 42 days' Line of Credit. The Writer has two Credit Cards which have 'Periodical Debits' set up to automatically debit his savings bank account to repay his Total Payment Due each month on the Payment Due Date. He enjoys a minimum of 28 days and a maximum of 42 days Line of Credit on his Purchases. Neither Credit Cards charges an annual fee. For many years, the Writer has paid no fees/interest on his two Credit Cards. Yet he has made Purchases which aggregate more than $200,000. He is not alone. There are many Financially Educated Cardholders that similarly enjoy a 'up to 42 days' Line of Credit at no cost, without contributing to the high cost of the array of Credit Card Products. The Writer argues that the Revolvers (with level 1 and level 2 Financial Literacy skills) are paying the Transactors (with level 3, 4 and 5 Financial Literacy) usage costs for their Lines of Credit which is contrary to ensure "...the economic prosperity and welfare of (all of) the people of Australia". The Writer has expended a few hundred hours preparing a Submission Letter which seeks Slater & Gordon to consider commencing a 'Class Action' on behalf of thousands of Australians with level 1 and level 2 Financial Literacy and have paid Material Interest And Fees (more than $5,000 in fees and interest on their Credit Cards at a Comparison Rate Over 20% Per Annum over any three year period), known as Eligible Plaintiffs, because - A. the majority of Credit Card Products charge a Usurious Unsecured Personal Loan Interest Rate which is up to 8% above the interest cost on Unsecured Personal Loans offered by the Four Pillars and over 10% higher against the most competitive Personal loans noted under point 2 of Usurious Unsecured Personal Loan Interest Rate; B. advertising of many Credit Card Products employ a Labyrinth of Concealed Spiders intended to deceive Australians over the age of 18 with only level 1 and level 2 Financial Literacy; and C. the RBA has not employed its "extensive powers" to "...gather information from a payment system or from individual participants." on Credit Card Products such as Balance Transfer Interest-Free Period Credit Cards or regulate Credit Card Issuers, thereby complicit in Numeracy And Literacy Discrimination against Financially Uneducated And Vulnerable Australians. Q & A encapsulates some of the Submission Letter (on a CD) that the Writer asks you to review, which provides a URL to the Writer's CD submission to Ms. Sharon van Etten, Public Relations Officer, Media & Public Relations Office, Reserve Bank of Australia dated 8 Dec 2011 which behoved the RBA to adopt the User Pays Principle by 'inter alia' seeking new transaction fees for all Credit Cardholders - referred to in his above opening paragraph. Should Slater & Gordon wish to commence my requested 'Class Action' against Australia's principal banking regulator and perhaps other regulators of Credit Card Issuers, the Writer would sell the Intellectual Property in his CD to Slater & Gordon for a peppercorn fee of $1. Will you approach IMF Bentham or another litigation funder? NB: The Writer has previously sent this submission to one other lawyer only, namely Steven Lewis at ACA Lawyers dated 10 May 2015. Steven wrote back to the Writer dated 25 May 2015. The Writer emailed Steven sent 24 June 2015.
Yours sincerely |
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