Consumer credit law changes introduced to Parliament
Hon Craig Foss
Minister of Consumer Affairs
18 April 2013
Consumer credit law changes introduced to Parliament
Consumer Affairs Minister Craig Foss today announced the introduction of a Bill making wide-ranging changes to consumer credit and repossession laws.
“The Consumer Credit and Financial Services Law Reform Bill is the biggest overhaul of consumer credit law in a decade,” says Mr Foss.
“The changes introduced today represent a crackdown on unscrupulous lenders who prey on desperate people and leave them and their families trapped in a spiral of debt.
“The changes will usher in an era where lenders must act responsibly, where consumers have the information they need and where there are significant consequences for those who breach the law.
“Rewriting the rules for consumer lending was one of the Government’s pre-election promises and forms an important part of the Business Growth Agenda, which aims to boost confidence in our financial markets. I’m pleased today to say the Government is delivering on those promises,” says Mr Foss.
The Bill
introduces a wide range of changes,
including:
• Lenders will have to take responsibility
for the likely effect of the credit they
provide
• Lenders will only be able to lend money when
the loan meets the borrower’s requirements and objectives,
and the payments required won’t cause substantial hardship
for the borrower
• Lenders may be banned from the
industry if they don’t lend responsibly
• A new Code
of Responsible Lending will be introduced
• There will
be better controls against misleading, deceptive or
confusing advertising
• Consumer goods cannot be
repossessed unless they are specifically identified in the
credit contract
• Licensing of repossession agents and
employees.
ENDS