Industry Links

Sharkwatch December 2000

That's all folks!

By Tony Devline

After three and a half years of having 'the best job in financial counselling' I am moving on. The advertisment for this position appears as an insert to this edition of Sharkwatch and was previously distributed via state financial counselling associations etc.

As many may now know Betty Weule, the Manager of Credit Line Financial Counselling Services, is retiring next year and I am going to try and take over the reins from her. This is an incredibly daunting task but at the same time very exciting and challenging.

I have found this position to be very fulfilling and satisfying. It has been a privilege to be on this end of the telephone hearing about the incredible work that people are doing out there. I have learnt an enormous amount about financial counselling and how people are committed to and care for their community.
My greatest concern still is that too often people go too far in caring for their clients and don't spend enough time looking after themselves. If I have any message it is that we must all make sure we get regular supervision and training, that we have in place systems for debriefing and for casework conferences and in particular that we take it easy on ourselves and don't expect too much of ourselves.

To the many wonderful people that I have had contact with please still stay in touch and I look forward to hearing of your progress for years to come. Take care and God bless.

Sharkwatch Assessment Sheets

Thank you to the many readers who returned the assessment sheets. It was most gratifying to hear so many positive comments and also very sound suggestions for areas of improvement. Most people seemed to like the structure and general content of the Sharkwatch.
One area a number mentioned that they would like to see more of is news, information and case studies from other Financial Counsellors around Australia. I sometimes feel guilty in asking people to contribute articles to the newsletter because of the demands on them already from their work. However I strongly encourage anyone who has a case study or any information at all that they would like included in the Sharkwatch to send it in to us. It will be happily received.

Remote & Isolated Financial Counseliors Conference 2000

In mid November the first gathering of remote and isolated Financial Counsellors, funded under the Commonwealth Financial Counselling Program, took place in Sydney and Wollongong. We were fortunate enough to obtain funding from the federal Department of Family and Community Services and JTSA which enabled a good standard of conference to be organised.

Participants came from such places as Meekatharra in outback Western Australia; Darwin, Katherine and Alice Springs in the Northern Territory; Coober Pedy in South Australia, Cairns, Townsville, Rockhampton and Gympie in Queensland; Narromine and Dubbo in NSW and Bendigo and Wonthaggi in Victoria. Many thousands of kilometres were travelled in getting to Sydney, some leaving their home town 2-3 days prior to axriving in Sydney.
In Sydney participants were shown through Credit Line Financial Counselling Services, the Star City Casino (to view harm minimisation procedures) and they were also given a bit of a look at Sydney. Some participants had never been to Sydney before and some had not been to Sydney since the Opera house was built.

The second day saw us all heading to Wollongong on the train for three days at the Novotel in Northbeach Wollongong. We were fortunate enough to secure some high quality speakers. The conference opened with a welcome by an Aboriginal Elder on behalf of the traditional owners of the land. Training sessions looked at topics such as, problem gambling, bankruptcy, confidentiality, supervision and case conferences. My highlights were the key note address by Betty Weule on the history and development of financial counselling in Australia and a presentation by two participants Kevin RoWe and Sue Cook on Aboriginal issues. Betty, Kevin and Sue spoke with amazing knowledge, passion and sensitivity.

I think that participants went back to their agencies feeling refreshed, knowledgeable and motivated. It is hoped that the conference will happen again and perhaps be expanded. I would sincerely like to thank all the participants for their contribution to it, I am sure everyone learnt a lot from each other and made lasting associations with others. I would particularly like to thank Kirsten Home for he major effort in organising such a comprehensive and professional event.

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Inside the debt collectors mind

By Greg Mowle

Ever wanted to know what goes on inside a debt-collector's mind? Why do they reject your common-sense settlement offers? Why do they ruthlessly pursue your client into bankruptcy for a nil return? This article will answer those questions and more. By knowing what motivates the debt collector you can achieve the best solution for your client

Prior to becoming a Financial Counsellor, I was involved in the debt collection industry for 15 years. I collected for finance companies, banks, insurance companies and government agencies. I had to collect secured debts, unsecured debts, mortgages, leases and insurance premiums. I worked as part of a vast call centre team, a small specialist recovery department and as a State Credit Manager. It is from these experiences and perspective this article is written.

It is important to understand the environment the debt collector is working in. Since the deregulation of the banking industry in the 1980s the pressure on lenders to continue to make record profits and return dividends to shareholders has been intensified. Margins are squeezed, staff 'downsized', technology introduced, branches closed and record profits announced. But it is never good enough. The shareholders demand more revenue and less costs. As the levels of debt soar, debt collectors and being forced to work harder. They have more accounts to collect, more debtors to phone and more promises to pay. These are the key features of a debt collector's working life:

Tags:
Tags is the term given to an account that 'will 'count? at month-end. If a collector is in charge of the 30+ days ledger, then it is their responsibility to ensure the number of tags is below the pre-determined limit. They will do 'whatever it takes to get their tag list below the limit by month end.

Monthly Close-Off:
On this date, the debt collector's performance is evaluated by management. Usually the last working day of the month or the last Friday of the month. The debt collector's month revolves around this date with all payment arrangements being accepted with this date in mind. They will say to themselves, "If I accept this arrangement being proposed by the Financial Counsellor, will the account be a tag at close-off'?

Key Performance Indicators (K.P.I)
The debt collector is evaluated by Management by a set
of K.P.I. These include:

• The number of tags at monthly dose-off
• Level of dollars outstanding at monthly dose-off
• Number of promises obtained
• Number of phone calls made in a day/week
• Number of broken promises
• Quality of arrangements accepted
• Review of accounts being written off from their budget

Days Overdue & Dollars Overdue:
An important distinction for Financial Counsellors to realise is that debt collectors are more concerned with the number of daya overdue rather than the amount of arrears. In other words, a credit card account that is 6 x $40 payments in arrears is more serious than a personal loan that is 2 x $400 in arrears. The intensity of harassment is increased the more often an account counts as a tag and is heading for write-off. As shall b explained later, the Financial Counsellor can devise pa~ ment arrangements to reduce the days overdue.
NOTE: This does not apply where a credit card is ov~ its limit.

Frontline Collection Staff Axe Not Trained:
The high turnover of staff in the collection industry means that the great majority of the staff that Financial Counsellors have to deal with, i.e. the ones who phone our Clients, do not receive adequate training in the statutory, legislative and legal requirements of debt recovery. Senior Credit Managers may disagree, but st do not receive a balanced perspective of debt recover They receive internal training for telephone technique that focus on phoning debtors "hard, early and often' Financial Counsellors know the frustration of dealing with a Collection Officer 'who has never heard of Section 66 of the Consumer Credit Code. The exempt property protection levels under bankruptcy are rarely known. This accounts for why debt collectors appear to be happy when they pursue a low-income, no asset debtor into bankruptcy. In the Collector's mind, they believe the debtor will lose all their assets, half of that government pension and quite possibly go to jail. I have checked the Australian Institute of Credit Management directory of members for a leading financier 'a employs over 1000 collection staff nationwide. They have three members.

Write-Off & Sale of Accounts
At some point the debt collector realises they will never collect the debt and is resigned to the account being written-off from their ledger. This is a cross on their performance. The Financial Counsellor must realise that before the account is written-off (say at 120 days), it is difficult to negotiate a settlement offer, either informally or a Part 1X, because the account is still 'live'. Because the debt collector cannot wait for a settlement to be negotiated, (too many tags), they will continue to press for a payment to reduce the days overdue. It is easier for a Financial Counsellor to negotiate a settlement with a mercantile agent who has bought the debt, or a lender's legal department, because there is not the pressure to obtain regular payments.

This is why they reject your settlement offers. Their company receives the tax deduction. It is not their money. They do not want a lump sum settlement, only a lump sum settlement of arrears or regular payments.

A Broken Promise Is Worse Than The Original Non-Payment
Remember that the Debt Collector is judged by K.P.I. Obtaining a promise to pay is good. If the debtor does not pay then that counts against the collector's performance. Debt Collectors do not like being lied to. Of course Financial Counsellors know that the great majority of debtors "lie" because of the pressure brought upon them by the Collector - remember they have to obtain a promise to pay. Most of our Clients are harassed into making a promise they know they cannot keep, just to get the Collector off the line.

As shall be explained shortly, it is advantageous to have your Client under-promise or stand their ground and not give a promise to pay at all. Breaking a promise only riles the Collector and sets up the cycle of:

broken promise > more forceful collection tactics > promise to pay > broken promise > over4 aggressive harassment with threat of legal action > promise to pay > broken promise > bankruptcy.

TACTICS AND STRATEGIES

Many of the following strategies are cornmonsense to most Financial Counsellors, but it is beneficial to reinforce them.

Always Under Promise
As all good hagglers know, it is easier to start low and work up than to start high and be committed to that figure. Whether it is a payment arrangement or a settlement offer, halve your original amount and take it to the collector.
monitored.

Collectors Will Give Assistance.
If a collector receives an honest Statement of Financial Position and knows the debtor truly cannot pay, then they do have the authority to give assistance. Arrears can be deferred or payments lowered if this will help the debtor in the short term. It is important not to start the collection cycle outlined in "A broken promise is The collectors need an incentive to help your Client. It is pointless simply telling them they cannot pay. If you inform them how their short-term help will give the debtor long-term assistance then the assisstance can be approved - remember the quality of the collectors arrangements are

Write to The Manager
If you have no luck with a frontline Collection Officer on the telephone, write to the Manager. Not only does the Manager have to deal with the situation, but there is a record of the debtor's financial position and predicament. Use of the Financial Counselling Network should procure Manager names.

Aim To Reduce The Days Overdue
If your Client is going to continue with an account and the collector needs a payment before dose-off, work out the minimum required to reduce the days overdue by 30 days e.g. a Personal Loan of $100 payments per month. Due to irregular payments the arrears ate $430. To the collector the account is 121 days overdue. Viz:

By paying just $30 the account is brought forward by 30 days and perhaps saved from write-off (It is worth noting that most payment defaults with Credit Advantage are listed at write-off~. The point here is that most debtors would feel pressured to pay $100 - perhaps $70 more than they have surplus after essential living expenses are paid.

Put Yourself in Their Shoes
Although we may not respect them Financial Counsellors have to acknowledge the debt collectors are doing the job they are paid to do. If they are working for a Mercantile Agent they may be on a commission system. They are under increasing pressure to collect debts. Too many broken promises and they might be called into the boss's office for "a chat". The bottom line is that if they do not collect the arrears (or make suitable arrangements), they will lose their job and will be unable to pay their bills. Who knows, they may be your next Client!

Greg Mowle is a Financial Counsellor with Lifeline in Brisbane.

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Round Up

The Financial and Consumer Rights Council of Victoria held it's Annual General Meeting on October 10, 2000. The new Co-ordinating Committee is: Chairperson, Sue Fraser; Treasurer, Dianna Bannister; AFCCRA representative, Jan Pentland; Ordinary Members, Maryanne Day, Jackie Galloway, Vivien Rogers, Isobel Buchan, Rene Ploegmakers, Jackie Bramwell, Les Lane and Tracey Rodont. The Vice Chairperson and secretary will be appointed from among the ordinary members.

The FCRC annual report is also available via http://www.vicnet.net.au/-fcrc/� - and look at the What's New page.

The financial counselling service at Coober Pedy, operated by Kevin Woon, is run out of the Coober Pedy Multicultural Community Forum. At times it has had one of the highest NESB access rates of any financial counselling agency in Australia. The Forum recently received an award signed by the Premier of South Australia, John Olsen. The award read, "Certificate of appreciation to the Coober Pedy Multicultural Community Forum for its valuable contribution to Multicultural South Australia."

The presentation took place at the convention room in the "Desert Cave' in Coober Pedy. The MC at the event was Dr Sev Ozdowski OAM, Chief Executive of Multicultural & International Affairs, Department of Premier and Cabinet.

The Financial Counsellors Association of NSW is holding its 2001 conference at Bathurst in the central west of the state. It will be at the University, which have very appropriate facilities, from 18 April to 21 April, 2001. Kevin Howard and his very capable team at Credit Line Bathurst are busily organising the event.

Financial Counsellors in NSW have been working in conjunction with then Department of Fair Trading to raise awareness of consumer protection issues in the marketplace. One of the main promotional activities was a Credit Phone-in inviting consumers to share their experiences and concerns with credit products and credit providers. Phone calls revealed such matters as:
a woman, 36, on a disability support pension and with a 10 year old child, got $30,000 in loans even though she had episodes of mental illness; and a bank gave two 19 year old women credit cards with $10,000 limits after they said they planned to travel overseas. The women did not travel but quickly spent the limit on the cards.

In South Australia, Sue Heathcote a Financial Counsellor at Adelaide Central Mission, has been elected the new president of the South Australian Financial Counsellors Association. The Adelaide Central Mission has been successful in procuring a grant from the SA Government to write up a financial counselling course and deliver three fifteen day courses next year.

A new Resource Worker has commenced at the Financial Counsellors Resource Project in WA. Stephanie Knox takes up the position on a three days per week basis. Stephanie has many years of experience in community work. She will be working with the very competent and experienced Jacinta Laffer

Ian Macdonald continues to be of invaluable support to financial counsellors in Western Australia. Jan runs regular half day casework support meetings on topics requested by participants. Upcoming topics include fines, enforcement and warrants of execution, and vary ing and ending debt agreements.

The founder and long time leader of Care Financial Counselling Service in Canberra, Judy Power has retired after making an enormous contribution to financial counselling in Canberra and around Australia. David Tennant has now taken on the role of Director of service. David was the Principal Solicitor with Care' Consumer Credit Legal Service for the last five years.

Financial Counsellors in central and northern Quee sland are few and far between, due to very poor levels funding. However the three Financial Counsellors wh do work in that area are all very committed,, capable an give their clients a high cpsality service. They are Sue Cook at Lifeline Cairns, Saskia ten Dam at Town vile Community Legal Centre and Margar Clements at Central Queensland Financial Counse ling Service, at Rockhampton.

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Notes & Notices

General Insurance Annual Report

The Annual Review of IEC Ltd has just been released. The IEC operates the general insurance complaints scheme. Denis Nelthorpe from Melbourne is a consumer representative on the board of the IEC. He reports some facts and figures of interest in the December 4 edition of the Devils Advocate, including

• Claims across all forms of business reduced by 15%.
• Total disputes increased by 12%.
• 660/0 of all disputes were below $10,000.
• Insurers won 71% of disputes; Consumers won 280/0 of disputes.

The IEC can be contacted on 1300 363 683 or visit their website at http://www.iecltd.com.au�

Banking Industry Ombudsman Report

The Annual Report of the Australian Banking Industry Ombudsman was also recently released. In 1999-2000 6,199 new cases were received, compared with 5,076 in the prior year, an increase of 22 per cent. Credit cards were the most common source of complaint among consumer finance products. There were also issues with deposit accounts, with the main complaint being the imposition of fees contrary to the account's terms and conditions.

The ABIO can be contacted on 1800 337 444 or visit their website at http://www.abio.org.au�

Email in

Janet Pine, formerly a Financial Counsellor at Midland in Perth, writes:

It's so good to get Sharkwatch, the info keeps me in touch with latest credit/debt management issues. Sorely missed is the FCRP library in Perth, now I'm living in far off Albany. I'd like to comment on the excellent article by Wayne Warburton on Understanding clients with Bipolar Disorder.

An important aspect of working with any client who has a psychiatric disability, is to find out which other agencies/support people they work with in maintaining their healthy status. For example during the time I was working at a psycho-social day centre in Victoria several years ago, we had to work on sound protocols between agencies and workers in relation to how far we could go with these clients. All workers had to be clear about the limitations and role of their particular agency. I recall one client had 40 agencies involved in his lifel That was extreme, most had a G.P., Psychiatrist, Mental Health Support Worker, Accommodation Worker, Carer, Family Member, Day Centre support worker, Occupational Therapist. to name but a few. You can see that a Financial Counsellor would probably only play a small part in this person's life.

In fact, whilst working as a Financial .Counsellor at Midland (WA) I insisted the mental health support worker accompany any client they referred for debt counselling, so that at least another worker witnessed any arrangement entered into by the client. In some cases this wasn't necessary. I offer these ideas to raise the issues and see if anyone else has experience or successful strategies to deal with these special and important clients.

Hugo Antezana from Wesley Uniting Mission in Adelaide telephoned and referred to the article in the October edition of Sharkwatch titled, "Hardship Variations under the Consumer Credit Code". Hugo was concerned that the comment in the article that, "A Section 66 application does not actually reduce the amount that will be paid under a credit contract but rather postpones the payments" may have been confusing to some.

A successful application may extend the period of the contract and reduce the amount of each payment under the contract, without a change being made to the annual percentage rates, see subsection 66(2) of the Consumer Credit Code.

The law matters

By Chris Joyce, Solicitor, Credit Helpline NSW

Often a client is served with a statement of claim/civil summons which does not adequately explain the claim. In such a case the defendant is entitled to seek further and better particulars of the claim. Even in cases where the details of the claim are quite apparent there is no harm and usually a benefit in further clarification. It should be noted that there is no strict legal rule that a plaintiff must supply the further particulars however the courts will almost always set aside a default judgment where particulars have been requested but not supplied and where there is a prima facie defence. All the same sometimes plaintiffs ignore the request for particulars and proceed to judgment It is a good idea to do a follow up letter asking them to confirm in writing that they will not proceed to judgment until the particulars are supplied and adequate time is given to draft a defence. A request for further and better particulars often has the effect of delaying further court action for a considerable period of time.

Here is a sample letter requesting further and better particulars. Note that some questions will need to be modified for each situation.

Undue Harassment and Coercion - Where to from here?

By Richard Brading, Principal Solicitor, WCLC

The October 2000 Sharkwatch referred to the Federal Court decision of Australian Competition & Consumer Commission v McCaskey. This is now the leading authority regarding undue harassment, coercion and misleading conduct by debt collectors. The judgment makes a good read as it contains graphic detail of the techniques used by Cash Return Mercantile, and its star collector, Shatyn McCaskey. Give us a call if you would like a copy.

Unfortunately the court's orders gave little joy for consumers who might be suffering stress and misery as a result of overzealous debt collection. The court merely ordered McCaskey not to use undue harassment or coercion in her work for a period of 3 years and to attend a Trade Practices compliance seminar! No compensation was payable to the victims for their suffering.

The McCaskey case is useful in defining what is undue harassment and coercion and what is not. Debt collectors are entitled to use harassment to collect debts as long as such harassment is not 'undue', or excessive. In addition, debt collectors are not permitted to make false statements or misrepresentations.

Although the ACCC has done excellent work in publishing guidelines about what is undue harassment and coercion, it will mostly be the responsibility of State Fair Trading Departments to police this area in the future.

Financial counsellors who encounter undue harassment, coercion or misrepresentation from a debt collector should:

• Make a written note of the date, time and ~xa~ct conteni. of all communications (i.e. the words actually spoken)
• Try to get the name of the debt collector
• Compare with the ACCC guidelines on harassment
• Contact their State Dept of Fair Trading and the
  ACCC
• Write or telephone the management of the debt collector, or the creditor to complain.

Government agencies are more likely to take action where there are multiple instances of harassment rather than individual cases. In McCaskey's case the ACCC prosecution was based on 4 detailed cases comprising numerous instances of harassment, coercion and misrepresentation.

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Confidential information and Counsellors

By Antoinette Younes
Solicitor, Wesley Community Legal Service. Antoinette is also a registered Psychologist. The Article does not claim to be a comprehensive analysis of the law but a general overview of the subject.

Confidential information is basically any kind of personal information given in certain circumstances from one person or persons to another with the expectation (either implicit or explicit) that the recipient would not disclose such information to any other person without authority. Depending on the circumstances, confidential information can include details of the following (this is not an exhaustive list):

• Mental & physical health,
• Financial circumstances! records;
• Marital status;
• Address;
• Telephone number;
• Tax File number;
• Employment records e.g. salary, sick leave, discipline, etc; Criminal records
• School/academic records.

The NSW Privacy & Personal Information Protection Act (1998) (this Act applies to public sector agencies) defines
personal information' as "information or an opinion (including information or an opinion forming part of a database and whether or not recorded in a material form) about an individual whose identity is apparent or can reasonably be ascertained from the information or opinion" (Section 4 of the Act).

The law (e.g. tort law, contract law and a number of legislative instruments) and professional/registration bodies recognize specific relationships which give rise to a duty of care to maintain confidentiality. These include doctor/patient, health professional (this would generally include counsellors)/client or patient, legal practitioner/ client, employer/employee, government bodies/public, etc.

Most professional and registration bodies have codes of conduct making provisions for maintenance of confidentiality. It is accepted that not all counsellors are Psychologists, however a good reference point on this point for counsellors is the NSW Psychologists Registration Board Code of Ethical Conduct (dated 3 November 1997) which states:
Unless required bylaw, or by duty to the clients or others, psychologists, even in supervision, must not release information about them unless the clients specifically authorize the release, preferably in writing." (At paragraph 2 of the Code).

Unauthorised release of information is not only release to a third party/organization outside an agency, but can include interagency communication. For example, casual discussions about clients with colleagues who are not handling the matter and are not supervisors, are arguably unauthorized release of confidential information.

Generally speaking counsellors/staff who are not directly involved in a particular case, clerical and domestic staff should not be able to access clients' files. This is so despite the fact that employees may have entered into an employment contract that requires the employee to maintain confidentiality.

The duty to maintain confidentiality is not restricted to verbal and written communication but includes maintaining confidentiality in the access, storage and disposal of records. Therefore, agencies and their staff must ensure that clients' files are kept securely with access limited to those who are directly involved. It is also good management to ensure that agencies have specific policies and guidelines setting out procedures for the management of clients' records.
Breach is basically unauthorised release of information. If this occurs, the client can take civil action against the counsellor and/or their employer. A client can obviously complain to the employer about the employee. They can also complain to the funding body. If the agency is a public sector agency, the client can complain to a state government Privacy Commissioner. Similarly, if the agency is a financial institution, the client can complain to the Commonwealth Privacy Commissioner, pursuant to the provisions of the Commonwealth Privacy Act 1988:

However, it must be pointed out that not all instances of release of confidential information constitute breach. For example, a subpoena is a legal compulsion requiring the production of documents and/or a witness to come to court and give evidence which invariably includes confidential information.

If subpoenaed, counsellors are usually obliged to disclose to the court confidential communication. The relationship between counsellor and client is a professional relationship based on trust, confidence, respect and care for the client.

There is a heavy duty on counsellors and organizations to ensure that the client's personal confidentiality is maintained.

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Pensioner Benefits - what it really pays for�

By Mary McLean Lifeline Darling Downs Qld

Please note: Mary's analysis it based on the circumstances of people living in Queensland.

Reached retirement and now eligible for a pension? If the pension is your only income then take care - your life style may now look like this:

If you are single, your pension will be $394.10 per fortnight plus Pharmacy allowance of $5.60. You will be eligible for a discount of around $24 per quarter on your electricity. A discount on your telephone and a discount on your registration of your vehicle. Registration costs will depend on the size of your vehicle. Discounts will also be available for movies, theme parks, theatre, etc.

Doctors may bulk bill at schedule rates and you may be able to get your medication from the approved pharmaceutical benefits list. Hospitals will not charge you but you may have to wait for some time for a bed and/or operation if it is not a declared emergency. The ambulance will transport you for free providing you have a pensioner concession card. You may even be able to get an appointment at the dental clinic at the hospital. However waiting lists are often long and there are delays if your dental work involves new dentures.

Another way to think about being on a pension may be this:
It costs approximately
3 pensions for transportation at the rate of $22.32 per week (including taxis) or
1 pension to register a 4 cylinder motor vehicle.
1 pension to insure a vehicle (providing it is a low cost vehicle).

1 - 3 pensions to keep the car in a reasonable roadworthy condition.
6 pensions will rent a government owned and subsidised unit.
7 pensions will pay a $95 per week private rental with rent assistance or
1 - 4 pensions to pay for the council rates and charges
1 - 3 pensions to pay for basic maintenance on your home (even rentals need this)
1+ pensions will be needed to insure your home
1+ pensions to have your grass cut for the year
1 -3 pensions will keep the electricity supply connected
1 - 3 pensions will let you keep basic telephone contact to friends
1 -2 pensions will pay for medications
2 - 3 pensions are needed to pay for private health insurance

At best, most may be left with some 14 pensions (14 Pensions @ $394.10 $5,517.40 per year or $106.10 per week) to cover the following Food, clothing, entertainment, petrol, dental, hairdressing, replacement of white goods and/or furniture, hobbies, purchasing plants for the home or garden, alternative therapies or treatments including vitamin tablets, cigarettes, alcohol, bingo, lotto, club subscriptions, books, magazines, gifts etc

As the rate of benefit paid for Solo Parents is the same as the pension, then the situation is similar for them. Higher costs for utilities and government housing apply and often rent is higher because of the need for a larger residence.

This would then mean that for each child under 13, there is an amount of $58.10 per week to feed, clothe, educate (including uniforms, books, book levies, school excursions), entertain, involve them in sports or activities etc. Health issues, bus fares/transport costs are also required to be paid from this amount of money. Over 13 this amount increases to 73.64 per week. until they turn 16.

The family tax payment B allows a single additional payment of $34.79 per week unless there is a child under 5 and this amount increases to $49.60 per week. This amount is needed to pay for possible tax liability as well as the above noted additional costs.

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Coober Pedy youth: Unloved and unwanted?

The following is a letter to the editor in the Goober Pedy Times dated October 18, 2000, written by Kevin Woon, Financial Counsellor.

In my five months of working in Goober Pedy, I have noticed one very important group in this town suffers from chronic neglect, the youth. Due to the town's isolation and relatively small population there is little recreation and leisure activity and a lack of basic facilities for young people.

People are quick to condemn young people when they foolishly resort to crime out of boredom, hunger, neglect or some other cause. But what have these same people ever done for the youth of this town? Have they ever tried to understand the issues facing the young people in Goober Pedy? Do they understand how frustrating it is for a teenager growing up in a place where they face the real prospect of not getting a job.

They are stuck in a town miles from nowhere with little in do. At this point, I should apologise to the small minority in the town that do care for kids and have tried to help them. Most adults in Goober Pedy are apathetic at best, plain ignorant at worst, when it comes to youth.

Being a kid is an exciting and confusing period of life. Youth are curious, inquisitive, they crave excitement. They need to be occupied, they want to be understood and need to be listened to. When they aren't they get bored, get into mischief; challenge authority and sometimes create havoc.

Young people don't understand that a sporting program will depend on a few people, and when they either 'bum out' or leave town, no one else is interested in taking over. What sort of message does that give the kids? The youth are left feeling angry and rejected. The adults are selfish, we have places and clubs where we can go. Where is there for the youth to go? There is no youth club or similar place where the kids can go to socialise, listen to music, to talk or play eight ball.

The youth see council as interested only in rates and roads. The thing is they are part of our community, they are entitled to have our needs met along with every other section of the community. The youth need to see that the key stake holders in Goober Pedy are taking an active interest in their welfare, they need to see that they are being listened to and people are interested in their welfare.

Sport and recreation, a Youth Council, a youth support worker and improved employment opportunities might be significant steps in showing the towns young people that the Goober Pedy community do care about them, and are prepared to listen. Any of the above will offer opportunities for improvements in the quality of life for our youth, all we need is the leadership AND community support to make these things happen.

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The debt collection industry

• Some predict that the industry will grow from the current $200 million a year to more than $500 million within two years.
• Rationalisation of the debt collection industry has resulted in several large companies dominating the market. These have the size and technology to offer significant savings collecting debts and are developing an increasing range of services.
• The Brisbane debt collector Collection House successfully listed on the Australian Stock Exchange in October. It has a significant share of the consumer debt collection market.
• Australia's biggest debt collection agency is Receivables Management Group. It formed after 16 firms in Australia and New Zealand merged. More than 60 staff trained in conflict resolution and persuasion methods staff it's Sydney call centre. It is claimed to have about 250/0 of the domestic market.
• Alliance Holdings was established in May last year by credit specialist Credit Advantage (formerly Credit Reference Association) and New Zealand firm Baycorp Holdings. In June, the Commonwealth Bank took a 33 per cent stake in Alliance and it became the exclusive provider of the Commonwealth's outsourced debt management services. It is targeting 15 to 200/0 of the debt collection industry.

Source: Sydney Morning Herald October 9, 2000.

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In the Media

Online Credit Applications Up
Australian Financial Review, November 27, 2000.

Westpac Banking Corporation is experiencing a boom in online sales of personal loans and credit cards. The bank is issuing more than 1,600 new cards a month over the internet, which is equivalent to the average sales volume of 80 of its branches. The internet service was generating 8 per cent of total credit card sales each month.

Westpac is also aiming to double online sales of personal loans, which totalled 495 in July. Westpac is selling about 25 mortgages a month on the internet, which is about four times the average volume of a branch outlet. Westpac boosted its online customer base by about 47,000 customers in October to 438,000.

Drug Addiction is a Disability
Australian Financial Review, November 23, 2000.

The Federal Court has found for the first time that addiction or drug dependency is a legally recognised disability in a ruling that will have major implications for employers and service providers. The Court ruling means companies that refuse to hire potential employees or sack people because they are drug dependant could breach the federal Disability Discrimination Act and be liable for damages.

Lawyers say the judgment, handed down last week, is the first authoritative finding that people with addictions are protected by laws prohibiting discrimination on the grounds of disability

Elders Bank rakes in cash
Australian Financial Review, November 6, 2000

Australia's newest bank, Elders Rural Bank, is continuing to benefit from an apparent backlash against the major banks in the bush, with new deposits reaching $220 million in its first four months.

Elders Rural Bank, a joint venture between Elders' parent, Futuris Corporation Ltd, and Bendigo Bank Ltd opened for business on July 1, 2000 following the first granting of a bank licence to a non-bank holding company and the first under new APRA guidelines.

Home loans just a click away
Australian Financial Review, October 23, 2000

In a bid to shore up dwindling mortgage volumes, Adelaide Bank is set to launch an automated credit scoring system that will reduce the waiting period on home loan approvals to less than a minute. Several non-bank lenders have already established automated online approval services since the Melbourne based lender Liberty Financial launched its internet origination ann, Loan-Net, in April last year.

The new system meant Adelaide would be the first Australian Bank to introduce an "on-thespot" approval service for home loan applicants. The loan will be immediately assessed through an automated credit scoring system and approval for the loan is issued immediately.

Bank credit bonanza
Australian Financial Review, November 21, 2000

Australia's major banks and other card issuers are primed for an earnings bonanza over the next two years from their card divisions as credit levels reach new highs. The average debt on each credit card in Australia has blown out by more than 60 per cent in the past three years to $1,619.

The general manager of CVC Global, Mr Mike Ebstein, said the banks were poised for a significant rise in net interest revenue on their credit card activities if economic conditions did not deteriorate. "The card issuers are positioned to do very well in the next two years if current trends in the credit card market continue," he said.

Gold medals not protected in bankruptcy
Australian Financial Review, October 10, 2000

Former "Mean Machine" swimming champion and media personality Mr Neil Brooks risks losing the gold medal he won at the 1980 Olympics in Moscow after being declared bankrupt yesterday over credit cards.

Insolvency experts said personal items of value like Olympic gold medals were not protected under the Bankruptcy Act and could be sold to meet a bankrupt's debts like other more traditional assets.

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Boundaries

By Paul Nugent, Psychologist, Lifeline Sydney.

The idea of a boundary is that it is a limit or a border. The
idea of personal boundaries has become an important one in the counselling and psychology field. It is a useful concept that can apply to our relationships with others and the
environment in many ways. Our most basic physical boundary is our skin which separates us from the rest of the world. Beyond this is another important psychological or social boundary known as "personal space". Good personal boundaries are flexible and permeable, that is they allow a two way flow between the inside and the outside and can respond to different circumstances. For example our skin conveys sensations from the environment e.g. hot or cold, moist or dry. It protects us from disease entering from outside while also being able to eliminate poisons from within.

Our personal space is flexible and can change, for example, depending if we are with a stranger or with a spouse, or the type of situation in which the interaction is occurring. There are also individual differences as well as cultural differences with personal space. Many of us have had the experience of people who invade our personal space by standing too close while talking and we may find ourselves backing away to keep them at a comfortable distance.

Most of us are aware of people who have poor boundaries.
This can go two ways. Boundaries can become rigid and inflexible and in fact become barriers. For instance a routine is a comfortable personal boundary that gives structure to life. For obsessional people this can become an inflexible defensive behaviour to control anxiety. Examples of people with weak boundaries are those who cannot say no, or people who have told you their complete life history within 5 minutes of meeting you for the first time.

Good healthy boundaries are important for everyone but they are even more important for people in counselling and other helping fields for both personal and professional reasons. Sometimes difficulties we may have in counselling can be because of unresolved personal issues. Having good boundaries will allow us to know when issues are arising from the client and when it may be our own issues. If problems are occurring when dealing with clients because of our own issues it is important to recognise this and seek assistance.

It is valuable for counsellors to examine their boundaries and see in what areas they may need to do some work. Tin-proving our boundaries will help us feel better about ourselves as people as well as counsellors.

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