Treasury consultation: Consumer Credit Reforms

CCLSWA was pleased to collaborate with other leading consumer advocate groups to provide written submissions to Treasury in response to the Federal Government’s proposal to repeal responsible lending obligations for most forms of consumer credit.

The joint submission provides one single recommendation: abandon the proposed legislation  and retain the responsible lending laws in their current form.

The submission details a range of negative ramifications that would result from the passing of the proposed legislation, including that it would:

  • reduce people’s legal rights against lenders and brokers in relation to lending;
  • reduce the incentives for lenders to comply with lending standards due to the removal of penalties for irresponsible lending;
  • reduce requirements for lenders and brokers to check information on loan applications;
  • dismantle the ASIC and APRA ‘twin peaks’ regulatory regime for bank lending.

In short, it would greatly reduce the extent to which the National Consumer Credit Protection Act 2009 (Cth) does what its name suggests it does.

Please click here to read the joint submission in full.

 

 

 

 

Michael Duncan