By Dr Heron Loban
Senior Lecturer, Griffith Law School

Book up is a type of informal credit extended by a business (usually a store) to a consumer without interest or fee. It is a primary area of activity for the Australian Securities and Investments Commission (ASIC) in respect of Aboriginal and Torres Strait Islander people but an area that fell outside the scope of the recent Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

In 2002, ASIC commissioned a study of book up “Book Up” Some Consumer Problems.[1] The published report outlined examples of book- up, the relative beneficial and detrimental aspects of it, the state of the law and recommendations for policy reform. The report cited historical and cultural factors as the primary impact.[2] It summarised some of the problematic aspects of book-up as being consumers tied to one retailer for all purchases; opportunities for price exploitation; and excessive credit that may be advanced to a consumer.[3]

In 2006, the Northern Territory Commissioner for Consumer Affairs raised issues of Aboriginal and Torres Strait Islander people being ‘captive’ to stores where they use book-up; the poor record-keeping by stores of book up; and, the need for a mandatory code coupled with education for Aboriginal and Torres Strait Islander consumers.[4] Also in 2006, the Northern Territory Government sought submissions from the public in response to a discussion paper released by its Department of Justice on the practice and regulation of book up. Many stakeholders were forthcoming in providing comment. The Banking and Financial Services Ombudsman in its submission noted the limitations of the law in providing for the settlement of disputes about book up, especially disputes about unauthorised bank transactions between a business and its customer (arising out of a book up arrangement).[5]

In 2011, in South Australia it was reported that book up and the practice of holding peoples’ bank debit cards had become a sharp issue. The South Australian Aboriginal Affairs Minister Grace Portolesi stated book up was ‘unacceptable’, and the federal Aboriginal and Torres Strait Islander Affairs Minster Jenny Macklin sought an ‘investigation’ into book up.[6]

In 2012, a follow up news story about book-up in the Aṉangu Pitjantjatjara Yankunytjatjara (APY) Lands in South Australia reported book-up in ‘at least three stores’ which also ‘held the bankcards and A personal identification numbers of about 100 Aboriginal customers’.[7] federal Aboriginal and Torres Strait Islander Affairs Minster Jenny Macklin further criticised book-up expressing the view that it should be ‘outlawed’ as should ‘unscrupulous credit practices’ generally in the APY Lands.[8]

In 2015, I was commissioned by ASIC to conduct a further study of book up [9] This report outlined fresh examples of book up and emphasised the complex cultural and historical background to the existence and use of book up in its contemporary form. It also reiterated the problematic features of book up as a form of informal credit used by Aboriginal and Torres Strait Islander people particularly against the background of limited access to financial and legal services in remote Australia.

In 2018, the High Court heard its first book up matter. It was brought by ASIC on behalf of a number of Aboriginal people from the APY Lands and responded to by Lindsay Kobelt of Nobbys Store in South Australia. The High Court’s decision is pending. As we await the outcome of this matter, this we know, it has been a long time coming.

[1] Gordon Renouf, “Book up” Some Consumer Problems, A Report prepared for the Australian Securities and Investments Commission, March 2002.

[2] Gordon Renouf, “Book up” Some Consumer Problems, A Report prepared for the Australian Securities and Investments Commission, March 2002.

[3] Gordon Renouf, “Book up” Some Consumer Problems, A Report prepared for the Australian Securities and Investments Commission, March 2002 at 6.

[4] Sara Everingham, ‘Concerns raised over book-up system’, The World Today ABC Online (online), 31 March 2006.

[5] Ombudsman Submission 2.

[6] Mark Schliebs, ‘Probe into book-up system’, The Australian (online) 6 September 2011.

[7] Sarah Martin, ‘APY ‘book-up’ still being used despite ban bid’, The Australian (online) 7 February 2012.

[8] Sarah Martin, ‘APY ‘book-up’ still being used despite ban bid’, The Australian (online) 7 February 2012.

[9] Australian Securities and Investments Commission, Report 451 – Book up in Indigenous communities in Australia: A national overview, October 2015.