CCLSWA welcomed the opportunity to provide a submission to the Senate Economics Legislation Committee regarding the Financial Services Reform Bill 2022.
CCLSWA’s submissions refer to the reforms to high-cost credit products in Schedule 4 of the Bill. The submission is in support of CCLSWA’s many previous submissions made in respect of small amount credit contract (SACC) and consumer lease reform.
In CCLSWA’s experience the existing laws for these products have failed to be effective in protecting consumers from financial harm.
CCLSWA has called for the Government to pass the Bill as a matter of urgency, without amendments.
CCLSWA considers the following are essential aspects of the Bill to be implemented as drafted:
- The 10% protected earnings amount caps for each of SACCs and consumer leases
- The 4% per month consumer lease cost cap
- Ban on unsolicited offers of SACCs
- Ban on unsolicited selling of consumer leases in person
- Anti-avoidance provisions
- Ban on referrals to unlicenced lenders
To view CCLSWA’s submission, click here.