Financial inclusion: previous research
Consumer credit contracts
Researchers from the Brotherhood and from Griffith University law school sought the views of people living on low incomes about credit regulations, focusing on disclosure and the safety net provisions in the Uniform Consumer Credit Code (UCCC). They found that current pre-contractual disclosure documents did not help participants to understand many of the important terms of the contract, or to know their rights; and accordingly they recommended improved regulation to protect this important group of consumers.
Report
Genevieve Sheehan, Therese Wilson and Nicola Howell 2008, Coming to grips with credit contracts: steps to protect vulnerable borrowers (PDF file, 153 KB)
Access to general insurance
The researchers investigated the reasons why many low-income and other excluded people are uninsured. Through group interviews in Victoria and New South Wales, they identified specific barriers to taking out or maintaining insurance cover – not just simple cost, but also perceived limitations of insurance products or insurers, and attitudes to assets. Drawing on these findings, they proposed measures to increase access to general insurance for households with limited incomes. This project was funded by AAMI Ltd and Australian Pensioners Insurance Agency (APIA).
Report
Genevieve Sheehan and Gordon Renouf 2006, Risk and reality: access to general insurance for people on low incomes (PDF file, 302 KB)
Affordable personal loans
This study concerned the personal loan pilot developed by the Brotherhood of St Laurence and Community Sector Banking. The program, trialled across Melbourne, provided small personal loans ($500 to $2000) for people on low incomes to purchase household goods and services. The study aimed to identify the barriers to credit for these consumers, and to advocate ways to overcome these barriers. On a small scale, the pilot highlighted the creditworthiness of a group of people on low incomes. For many participants, obtaining a loan was not only about money, but also about dignity and inclusion. The report recommended that the private sector, community organisations and government should work together to improve access to the mainstream credit market for people on low incomes.
Report
Rosanna Scutella and Genevieve Sheehan 2006, To their credit: evaluating an experiment with personal loans for people on low incomes (PDF file, 185 KB)