For the past week, Rowena Lagana has struggled with the pain from her back injury because she couldn’t afford to buy painkillers.
She was relying on payments from a debt management firm, which last year the Financial Ombudsman Service found had drawn up an “unconscionable” contract. The firm, Clickthru, was ordered to pay Ms Lagana $12,880 plus interest.
Sophie Gerber, director of financial consultancy firm Sophie Grace, said there was a definite trend in businesses cancelling their licence simply to avoid paying compensation to victims.
“[The issue of avoidance] is most concerning for small Australian financial services licence holders who do not have much to lose by cancelling their licence and moving on to operate under a different structure, or simply exiting the industry,” she said.
Sophie is the director of both Sophie Grace Legal Pty Ltd and Sophie Grace Pty Ltd. Sophie has worked with some of Australia’s largest financial services organisations in compliance, legal and operational roles. She has also worked with small businesses to provide tailored solutions with a strong understanding of business practicalities as well as obligations to regulators.