Super Consumers Australia calls for unfair trading ban to end financial services cold calling
Super Consumers Australia reiterates the call for a full ban on unfair trading practices following ASIC’s damning review of super switching services.
Super Consumers Australia is again calling for a ban on unfair trading practices following ASIC’s Exposing high-pressure cold calling tactics and social media click-bait leading to superannuation switching report, released today.
ASIC is concerned some financial advisers, licensees, and super funds are benefiting from high-pressure sales tactics used by cold calling operators and click-bait advertisers to encourage inappropriate superannuation switching.
“ASIC has found an alarming number of businesses exploiting legal loopholes to put people in completely inappropriate super products, and they’re charging a pretty penny for it,” says Super Consumers Australia Policy Manager Rebekah Sarkoezy.
“An unfair trading ban in the consumer law would make it clear that these sorts of practices are simply not okay. Over six months ago, the government consulted on an unfair trading ban that could shut down cold calling in financial services for good, but we haven’t seen any action since then.
“It’s now time for the Assistant Treasurer to step in and protect people’s retirement savings from dodgy super switching services”, says Sarkoezy. “These services are costing Australians thousands in fees and needlessly eroding their retirement savings.”
Today’s report also raises serious questions about whether the super funds and financial advisors that rely on these dodgy switching services are acting in people’s best interests.
“We’re encouraging people to be careful about the kinds of personal information they share online. Hang up on cold calls and ignore social media click-bait promising to compare and switch your super. ASIC’s MoneySmart website and the ATO’s YourSuper comparison tool are free and independent guides to find information about comparing and switching super funds.”