Social justice student projects

Point of sale credit is an umbrella term used to describe one of the emerging financial services on offer, ‘buy now, pay later’ (BNPL) products. Buy now, pay later is a way of purchasing something without having to pay the full cost at the time of purchase, instead making smaller payments over a longer period of time, like an instalment plan. There is no interest payable on the repayments like a typical loan, but there are fees involved. It is important to understand all aspects of the BNPL service industry, as this is imperative in deciding whether the service is appropriate to the individual and their personal financial needs and wants. The services are extremely convenient and can be very helpful and appropriate for many individuals, however with this comes with potentially detrimental consequences, should an individual use the services incorrectly, by the unintentional accumulation of BNPL payments that are unable to be serviced or other debt accumulated. There is a responsibility imposed on the user to understand not only the complex terms but also the and potential risk they are signing up for.

Australia has seen a drastic growth in online gambling, with approximately 55% of all gambling being conducted online. Whilst credit cards are not the most common method of payment for online/interactive gambling, and is now prohibited, problem gamblers are four times more likely to utilise credit to gamble than those non-problem or low risk gamblers. This intensifies the likelihood and risk of substantial harm. The Interactive Gambling Act 2001 (Cth) prohibits the supply and advertising of ‘designated interactive gambling services’, namely prohibited interactive gambling services, or unlicensed regulated interactive gambling service, to consumers physically located within Australia. At present, the onus is on consumers to protect themselves. This proves difficult for problem gamblers, who are more likely to be using credit to fund their addiction and are predisposed to having lower impulse control. It is recommended that Australia adopts consistent policies with respect to the use of credit for in-venue and online gambling, similar to that of the UK.

The Indigenous Business Handbook has been written, designed and researched by several thoughtful, talented and dedicated groups of Indigenous and non-Indigenous students at the School of Law and Justice at the University of Newcastle (Australia).This Handbook acknowledges the common struggles, and uncertainty faced, when starting a business; alongside the complex family and social pressures that business owners may encounter. The Handbook aims to provide useable legal tools informed by the recognition of Culture.

The Handbook was envisioned by Associate Professor Kevin Sobel-Read who also supervises the Project. Two remarkable students – Taylah Gray and Hannah Stenstrom – provided essential and foundational work as research assistants. The students listed within the Handbook contributed to the consultation, research and writing within the Special Interest Project Course, LAWS6091. The first iteration and launch of the Indigenous Business Handbook in July 2023 was facilitated by Kyiesha Faulkner, Sophie Amanatides and Victoria Gill. the full handbook can be accessed here.

As a living document, we encourage you to provide feedback and suggestions to inform further iterations of the Indigenous Business Handbook. Please contact Associate Professor Kevin Sobel-Read, Deputy Head of School, Director of Teaching and Learning, University of Newcastle School of Law and Justice

There are a number of accepted ways in which consumers may protect themselves from investment scams. The most notable, as highlighted by Moneysmart and Scamwatch, include:

• Getting professional advice before deciding to invest into an opportunity, including in relation to cryptocurrency. Although there are currently no obligations surrounding the provision of advice in relation to cryptocurrency investments, financial advice should nevertheless be sought from someone who is registered with ASIC, and who holds an Australian Financial Services Licence. This information can be verified on the ASIC Connect Professionals Registers.

In March 2022, there was $33.28B in new borrower-accepted loan commitments for residential housing (seasonally adjusted), of which $21.57B  was accounted by owner occupiers, and $11.71B by investors. Further, $2.29B was accounted by personal fixed term loans and $9.13B accounted for business loans (construction and property purchase). Australia’s household debt-to-income ratio is currently in the top quartile of the world. No matter how a decision is made regarding the credit extending to an applicant (i.e. whether to give credit, and if so, the terms on which it is provided), a voluminous amount of data and information is used by the potential lender. In terms of the information that is used, the credit score of an applicant has been the dominant piece of information used when assessing the “five C’s” that the lender will consider. However, the Office of the Comptroller of the Currency (OCC), part of the US Department of Treasury, has questioned the traditional dominance of the credit score. The OCC has noted that people who lack a credit score struggle to obtain credit, but that they are paying rent, utilities and financial obligation on time. These on-time payments could be used as an alternative to the traditional credit score.  The OCC noted that there are 45-65 million people in the US with “either no credit file or a very thin credit file,” most of which are minorities. This is a point worth considering, especially the impacts of artificial intelligence in the lending decision.

In recent years the reports of fraud, identity theft and other scams have soared. Scammers study their potential targets and there is little doubt that scammers target unsuspecting and sometimes vulnerable groups. Romance scams occur in situations where an individual is deceived for financial gain by someone whom the victim perceives to be in a relationship with them. The increase in internet use, the growth in loneliness and the increasing engagement in online dating sites during COVID-19 presented opportunities for romance scams to increase. One UK study by Buil-Gil and Zeng (2022) has shown that romance scams are a growing crime, which not only increased drastically during COVID restrictions but had been growing each year for at least seven years.

This project aims to examine the distinction between loans and gifts when money is distributed to family members within an inner circle. In the absence of clear documentation or formal agreements the court will rely on various factors to determine the intention behind the transactions. These factors include; the relationship between the parties, the context in which money was given, and any evidence of discussions regarding repayments.

Click here for information sheet.
Read the full article here.

Student: Sunny Zuo