Urban Rampage Centrepay ban becomes permanent after company withdraws review application following reforms

The ban on Urban Rampage using Centrepay has become permanent after the company withdrew its application for a review of the ban in October following new reforms to the system.

Parent company Coral Coast Distributors Cairns was ordered by the Australian Securities and Investments Commission to stop signing their customers up for Centrepay credit arrangements in its Urban Rampage stores in April 2024 after ASIC found the arrangements placing customers at risk of financial hardship.

It came after an initial interim stop order in February 2024, which prevented the company which owns 10 stores in remote parts of northern Australia including in the Kimberley and Alice Springs from entering into new Centrepay agreements with customers.

Then on April 30, 2024, Coral Coast applied for a review of ASIC’s stop order and for a stay of the final stop order decision.

After multiple hearing vacations, the company finally withdrew its application for review on October 20, 2025, and on November 5 the Administrative Review Tribunal advised the review proceeding had been dismissed, effectively making the ban permanent.

Coral Coast Distributors Cairns chief operations officer Andrew Hughes-Morris said new reforms had made the company’s appeal obsolete.

“Since Services Australia has now removed Centrepay from all businesses offering household goods, that outcome has been achieved. There was no longer a reason to continue with the appeal,” he said.

After the ban, Urban Rampage sales decreased 79 per cent from $1,079,164 in February 2024 to $219,838 in March, which Mr Hughes-Morris said was due to an unfair playing field next to other companies that could still offer the service.

“The Centrepay decision had a major impact initially and sales have declined significantly,” he said.

“When the stop order was imposed, other retailers in the same category were still allowed to use Centrepay while we were not. That created an uneven playing field and directly affected our sales and financial position.

“Now that Centrepay has been withdrawn for all businesses in the household goods category, that imbalance has finally been resolved.

“It gives us a fairer footing to rebuild and continue supporting regional and First Nations communities that rely on us for affordable essentials. Since then, we’ve worked hard to adapt and stabilise operations.”

ASIC Commissioner Alan Kirkland said the conclusion of the case sent a message to all businesses that they can’t enter credit arrangements that cause widespread harm to customers.

“Our decision was based on really clear and repeated evidence from financial counsellors that these arrangements were causing harm and that the customers to whom harm was being caused were predominantly First Nations customers,” he said.

“We had a range of First Nations customers and financial counsellors that assisted us by providing evidence that fed into our decision to apply the stop order, and when we applied the order, it was widely welcomed by a range of organisations that provide assistance to First Nations customers.”

“There have been a range of businesses using Centrepay in this way in the past, but since we took this initial action against Urban Rampage, there have been a range of reforms to the Centrepay regime that are rolling out right now, and so as a result of those, there’ll be a lot less businesses that are able to use Centrepay in the future.”

Djarindjin Aboriginal Corporation financial counsellor Veronica Johnson, who said she has had numerous clients affected by Urban Rampage’s use of Centrepay, said she hopes ASIC will keep a close eye on the situation.

“We’re really pleased there’s been this Centrepay reform but a lot of harm’s been done in the past,” she said.

Urban Rampage also offer “buy now, pay later” services at its Broome store which Commissioner Kirkland said ASIC will be keeping a close eye on.

“We are aware that the Urban Rampage and other businesses are offering other payment methods... and if we see evidence of significant harm, we may take further action,” he said.

Ms Johnson said she had seen many clients who had also fell victim to buy now, pay later services.

“They’ve got buy now pay later service and you wouldn’t believe how many people we see who are in over their heads with debt. It’s all those little loans and easy credit options that put people in harm’s way,” she said.

“The reforms are great, but we still need to look at the after-effects and see what these businesses will do next.”

However, Mr Hughes-Morris rejected that the company had caused harm to their customers by using Centrepay.

“ASIC’s order was issued without any evidence of customer complaints, customer harm, or unconscionable conduct,” he said.

“Coral Coast Distributors has never failed a Services Australia audit and has always complied with all relevant laws and regulations. The Centrepay system we operated was completely interest-free and fee-free.

“Customers could cancel deductions at any time without penalty, and we never pursued repayment or return of goods if they chose to stop paying. There was no debt pressure — only a voluntary, flexible payment option.

“We understand and respect the roles of ASIC and financial counsellors.

“Our focus has been on making sure people in remote and First Nations communities have access to essential goods at affordable prices. We’re committed to working within the rules and continuing to do that responsibly.”