Treasury has released two sets of draft Regulations supporting the operation of the Consumer Credit Legislation Amendment (Enhancements) Bill 2012, Small Amount Lending and Consumer Leases.
Treasury has also provided a brief commentary on the small amount lending regulations together with a series of specific questions for stakeholders.
In relation to small amount credit contracts and the proposed caps on costs the provisions include regulations specifying:
- requirements for a warning sign for licensees’ premises and websites;
- the circumstances in which credit providers can continue to seek payments through a direct debit request (where they have not received payment as a result of the request);
- a proposed ‘Protected Income Amount’ where the borrower is Centrelink-dependent; and
- requirements to address potential avoidance of the caps on costs.
With consumer leases, the proposed regulations provide for:
- a range of disclosure requirements relating to consumer leases for the hiring of goods including annual statements; and
- a form to be signed where lessors seek the consent of a lessee to enter their residence to take possession of goods.
The Consumer Credit Legislation Amendment (Enhancements) Bill 2012 has passed the House of Representatives and is scheduled to be debated in the Senate in the Spring 2012 sittings.
