CCLSWA’s Submissions to the Senate Inquiry on the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020
In our submission to the Senate Economics Legislation Committee’s inquiry into the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 (‘the Bill’), CCLSWA voiced our deep concerns over the Government’s proposed roll back of responsible lending laws.
Under the Bill, the Government proposes to remove responsible lending protections that currently apply under the National Consumer Credit Protection Act 2009 (Cth). These protections apply to all forms of consumer credit such as home loans, credit cards and car loans, above a limit of $2,000.
Under the proposed changes, lenders and brokers will no longer be required to assess a borrower’s individual suitability for a loan, or be required to verify information provided about the borrower’s financial circumstances.
The submission outlines our concerns that removing responsible lending laws will cause harm to our clients and the broader Western Australian community.
The Bill also proposes to amend the laws on small amount credit contracts (SACCs) under $2,000 and consumer leases – however, these proposed changes fail to properly implement the vital reforms that we have advocated for many years.
To view CCLSWA’s submission, click here.