ASIC bans Katherine shop Indy-C store from using Centrepay over concerns for vulnerable Aboriginal consumers.

The consumer watchdog has banned a second North Australian retailer for remote Aboriginals from selling their goods to welfare recipients on credit. The more than 20 year-old Indy - C store in Katherine, NT, has been issued a 21-day stop order by the Australian Securities and Investment Commission from using Centrepay which acts as a buy now pay later scheme for Centrelink recipients. It follows ASICs decision in March to ban retailer Urban Rampage, which has four stores across the Kimberley, from using Centrepay arguing the retail chain was putting its poor customers at risk of financial harm. Centrepay is a controversial scheme managed by Services Australia which allows businesses to be paid an agreed amount from a person’s fortnightly pension entitlement before it hits the recipient’s account. In a statement released on Tuesday the consumer watchdog said a 21-day stop order had been issued to Indy-C because it was concerned their Aboriginals customers on Centrelink were entering credit arrangements when they were financially vulnerable and had no other access to finance. “ASIC is concerned these consumers are at increased risk of financial hardship,” the statement read. “Consumers’ repayments to Indy-C for clothing and homewares purchased on credit are deducted from their Centrelink income before they receive their support payment. This carries the risk that they will then be unable to meet essential living expenses. “ASIC is concerned that Indy-C does not assess consumers’ needs, objectives or financial capacity before the credit facility is distributed to them.” In the statement ASIC said they had received complaints through consumer networks and via the Commission’s Indigenous Outreach Program suggesting that Indy-C’s use of Centrepay may be causing their customer’s financial harm. The Kimberley Echo contacted the owner of Indy-C but they declined to comment. In March, when ASIC banned Urban Rampage from using Centrepay at its 10 stores across Northern Australia it sited numerous complaints, mostly from financial counsellors, that its customers were experiencing hardship. That included some customers presenting for emergency relief after entering into the buy now, pay later arrangements at its stores. Urban Rampage is now appealing ASIC’s Centrepay ban through the Administrative Appeals Tribunal saying its business has all but come to a halt without Centrepay.