The financial regulator ASIC has taken action against a second Northern Territory clothing retailer over concerns it was exposing vulnerable Aboriginal customers to financial risk. The store has been barred from using Centrepay – a service that lets customers pay for goods and services through deductions from their Centrelink benefits.
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TVTranscript
00:00It's been unusually quiet at Indy C, a clothing shop on the main street of Catherine in the
00:07Top End.
00:08They come in every, every day asking, is it back, have you got it back yet, have you got
00:13it back yet?
00:14Sorry, I can't do anything.
00:17The shop has been barred from signing its largely Indigenous customers up for Centre
00:21Pay, a buy now, pay later style service for people on Centrelink payments.
00:26They can buy funeral clothes, they can buy clothes for their children and they don't
00:31have to look for money when they come in.
00:34The financial regulator ASIC says Indy C was putting its customers at significant risk
00:39of financial harm, concerned they were signing up for repayments they couldn't really afford.
00:45We're here to help the people, we're not here to disadvantage them and that's all we've
00:50done is help.
00:51Everybody that joins up, I always ask if they can afford it.
00:54Indy C isn't the only clothing store that ASIC has kicked off Centre Pay.
00:58The chain Urban Rampage has also seen stores barred.
01:02But there are three other clothing stores in Catherine still using the scheme.
01:07Financial counsellors say the high concentration is a sign of a problem.
01:11We were having clients come into our office on a regular basis, every single day, with
01:17four or five deductions to different clothing stores and needing emergency relief to buy
01:22food.
01:23But new reforms from the federal government could have ramifications for all of them.
01:28Household goods and basic household items will not be available to be done through Centre
01:33Pay.
01:34People using Centre Pay, they're on a very low income and they really shouldn't be going
01:40into credit to purchase clothes.
01:42Back at Indy C, Beverly Van Wick says she now faces difficult decisions.
01:47If we haven't got the money coming in, what do we do?
01:52Do we close?
01:53The reforms to Centre Pay will take effect in July.