{"id":276290,"date":"2025-11-10T22:08:16","date_gmt":"2025-11-10T22:08:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/276290\/"},"modified":"2025-11-10T22:08:16","modified_gmt":"2025-11-10T22:08:16","slug":"urban-rampage-withdraws-bid-to-have-centrepay-credit-ban-overturned","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/276290\/","title":{"rendered":"Urban Rampage withdraws bid to have Centrepay credit ban overturned"},"content":{"rendered":"

Outback retailer Urban Rampage has withdrawn its bid to overturn a permanent ban on signing customers up to Centrepay credit arrangements.<\/p>\n

The clothing, jewellery and homewares retailer operates 10 stores across regional and remote Western Australia, the Northern Territory and Queensland.<\/p>\n

In February 2024, the Australian Securities and Investments Commission (ASIC) found the store’s parent company, Coral Coast Distributors (CCD), was using Centrepay and causing consumers financial harm<\/a>.<\/p>\n

Its customers “predominantly reside in remote Aboriginal communities” and “are on low income or welfare recipients,” according to the Urban Rampage website.<\/p>\n

Coral Coast Distributors had lodged an appeal to the Centrepay ban, which was set to be heard before the Administrative Review Tribunal, but has since withdrawn the application.\u00a0<\/p>\n

A tribunal spokesperson said the case had been finalised and there would be “no further listings”.<\/p>\n

\"Black<\/p>\n

Urban Rampage’s parent company, Coral Coast Distributors, withdrew its appeal in October. (ABC Kimberley: Andrew Seabourne)<\/p>\n

Stores ‘should have known better’<\/p>\n

Centrepay, which is run by Services Australia, allows people to purchase select goods and services through deductions from their Centrelink payments.<\/p>\n

ASIC commissioner Alan Kirkland said it was unclear how many customers, particularly First Nations consumers, were signed up to debts they could not afford or fully understand.<\/p>\n

“Deductions were coming out of their Centrelink payments before they even received them,” he said.<\/p>\n

“Now these were by definition, people on low incomes so when those incomes were cut even further, that meant many of them were unable to pay day-to-day expenses.”<\/p>\n

Mr Kirkland said Urban Rampage “should have known better”.<\/p>\n

“This is a warning to other businesses that you can’t use credit facilities in ways that cause widespread harm,” he said.\"A<\/p>\n

Alan Kirkland says Urban Rampage targeted vulnerable customers. (ABC News: Julian Robins)<\/p>\n

‘Writing on the wall’<\/p>\n

Recent changes to Centrepay announced by the federal government came into effect on November 3.<\/p>\n

The reforms meant items such as household goods, sports equipment and furniture could no longer be purchased using Centrepay.<\/p>\n

Mr Kirkland said he believed ASIC’s investigation “fed into their [Services Australia’s] thinking”.<\/p>\n

“The writing was on the wall,” he said.<\/p>\n

“We’re really pleased they’ve discontinued this appeal because we made that stop order for a reason we think should stand, and now we know that it will.”Retailers concerned about Centrepay changes<\/a><\/p>\n

Business owners worry major changes to a buy now, pay later system used by about 500,000 social security recipients will cause a raft of issues when it begins next month.<\/p>\n

While Centrepay is off the cards for Urban Rampage, the company is allowed to sell goods through another direct debit program and Afterpay.<\/p>\n

The Urban Rampage website states “the product is suitable for people who would like access to credit with limited recourse, no fees and charges and who meet the eligibility criteria”.<\/p>\n

ASIC said it would continue to monitor any financial arrangement where there was a risk of consumer harm.<\/p>\n

“We really need to look at each of these arrangements on a case-by-case basis, to look at exactly how they’re working, what the terms and conditions are, what the processes are,” Mr Kirkland said.<\/p>\n

\"A<\/p>\n

Urban Rampage was first banned from using Centrepay’s credit service in 2024. (ABC Alice Springs:\u00a0Chris Murrkarany Fitzpatrick)<\/p>\n

Level playing field\u00a0<\/p>\n

In a written statement, Coral Coast DC said it had withdrawn its appeal because the recent federal government changes ensured a “fair and level playing field” for all businesses operating in the same household goods category.<\/p>\n

“Our focus throughout has been on maintaining fair competition and financial viability for our stores in regional and remote areas,” it said.<\/p>\n

The company also denied its practices were causing harm to customers, stating it had always complied with relevant laws and regulations, and services were interest and fee-free.<\/p>\n

“ASIC’s order was issued without any evidence of customer complaints, customer harm, or unconscionable conduct,” the company statement read.<\/p>\n

“For many people in regional and remote communities, Centrepay was the only safe and regulated way to purchase essential items without turning to high-cost or unsafe credit options.”<\/p>\n

The company said it was confident in the processes it had set up for direct debit payment, with customers individually assessed by trained staff.<\/p>\n

“The goal is to provide simple, responsible payment options with no fees that promote financial inclusion and protect customers with limited access to safe credit,” it said.<\/p>\n

Kimberley financial counsellor Veronica Johnson said many of her clients had been “taken advantage of”.<\/p>\n

“We don’t know the extent of the harm that was caused,” the Djarindjin financial counsellor said.<\/p>\n

Ms Johnson called for greater checks of a customer’s financial standing.<\/p>\n

\"Woman<\/p>\n

Veronica Johnson says her remote Aboriginal clients have been taken advantage of. (ABC Kimberley: Esse Deves)<\/p>\n

“I think it’s just opening another tap where there’s going to be vulnerability involved and people will be taken advantage of,” she said.<\/p>\n

“I guess the future will tell us once we are actually able to talk to some of these consumers to see what harm has been caused.”<\/p>\n

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