The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, has announced the release of the Consumer Credit Reform Green Paper, National Credit Reform – Enhancing confidence and fairness in Australia’s credit law, for public comment by 6 August 2010.
The Green Paper contains reform proposals that are being considered as part of Phase Two of the Council of Australian Governments’ (COAG) Credit Reform agenda.
Legislation implementing the changes is proposed to be in place for some projects (listed in Part One below) by mid‑2011, and those requiring more consultation (listed in Part Two) to be in place by mid‑2012.
The Government will consider:
- enhancements to the regulation and tailored disclosure for reverse mortgages;
- extension of the National Credit Code to include disclosure requirements for consumer leases and linked credit providers;
- regulation of credit for personal use and peer to peer lending;
- regulation of various aspects of credit card lending;
- possible extension of unjust conduct provisions to credit service providers; and
- further enhancements to the National Credit Code.
The Government will consider projects requiring more in-depth industry consultation, including:
- regulation of the provision of credit to small business;
- regulation of credit for investment loans other than margin loans;
- examination of mechanisms, including state approaches to interest rate caps, to address predatory or fringe lending;
- an examination of the need for any enhancements to responsible lending provisions for post-entry conduct;
- a review of the regulation of credit advertising directed at vulnerable consumers;
- reform of mandatory comparison rates; and
- a possible review of credit licensing requirements for debt collectors.