Minister for Superannuation and Corporate Law
3 December 2007 - 8 June 2009
Public Exposure of National Consumer Credit Protection Bill 2009
Senator Nick Sherry, Minister for Superannuation and Corporate Law, today released the Rudd Government's draft national credit laws for public comment.
"I am pleased to announce the release for public exposure of the National Consumer Credit Protection Bill 2009 and the proposed Regulations and Explanatory Material."
"This law will see simple, standard, national regulation of consumer credit for the first time in our country's history."
"This release sees the Rudd Government deliver on the first phase of our comprehensive plan for a national regime for consumer credit to better protect all Australians, following the historic agreement by the Council of Australian Governments in October 2008."
"The introduction of a comprehensive national licensing scheme will see consumers benefit through robust licensing that will bar unscrupulous operators from the industry; and lead to improved standards in the way lenders and brokers operate."
"I would like to take this opportunity to thank industry and consumer group representatives and State and Territory Government officials who have worked closely with the Treasury and the regulator since the announcement was made last year. Their valuable efforts have contributed to a regime that works to protect consumers and deliver a regulatory regime fit for business in the 21st century," said Minister Sherry.
The new national regime includes:
- a new national licensing regime, built around the Australian Credit Licence
- a world-leading responsible lending obligation
- a significant cut in red-tape for business
- a new easy to access and low cost dispute resolution mechanism
- a significant new consumer protection and redress mechanisms,
- extending protections to investment loans for the first time;
- adding numerous new improvements to the existing credit code, and
- an expansion of the access thresholds for mortgage hardship claims
"This is a major reshaping of financial services for Australia – it will save business money and will protect all Australian consumers," said Minister Sherry.
The package of consumer credit reforms can be found and downloaded at www.treasury.gov.au/consumercredit. Comments on the draft legislation can be provided by email to email@example.com by Friday 22 May 2009.
27 April, 2009