Family Budgeting happy to see progress on Lending Law
Family Budgeting happy to see progress on Consumer Lending Legislation
Family Budgeting CEO, Raewyn Fox says the passing of the second reading of the bill to overhaul consumer credit laws is very good news. The changes address the key concerns budget advisers have been experiencing with their clients.
In particular the responsible lending aspects and the measures to ensure borrowing decisions have a sound basis will help to alleviate a lot of stress and hardship. Unsustainable lending decisions cause much of the misery we see in the families we work with.
The other key aspect we are happy about are the limitations around items that can be taken as security and repossessed. It is most distressing to see a family lose all their possessions including the children’s beds. Clear listing of secured items and limits on securing essential items are a great step forward says Mrs Fox.
None of these measures are fully effective unless there are significant consequences for breaching the law. The new enforcement powers and penalties will help to protect consumers.