The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP has announced changes to the consumer credit reform package in response to the Senate Economic Committee’s report.

The changes are:

• the commencement of the consumer credit reforms will be deferred by six months to 1 July 2010;
• the removal of subsection 130(3) from the Credit Bill so that credit providers will have to verify information provided in a preliminary assessment;
• to clarify that consumers have access to remedies without having a formal finding by a court in relation to civil penalty;
• to require lenders to provide consumers with reasons for rejecting applications for hardship variations and stays of enforcement;
• modifying the definition of residential property so that it excludes properties which are not predominantly used for residential purposes;
• clarifying that certain ASIC decisions, particularly regarding enforcement action, are excluded from Administrative Appeals Tribunal review;
• enabling ASIC to issue certain documents in a form prescribed by regulations;
• clarifying that ASIC may exempt a person and all their credit representatives in a single determination;
• increasing flexibility for ASIC to grant exemptions to some parts of the National Credit Code or subject to conditions;
• allowing for the transfer of information documents, assets or liabilities from a State or Territory to ASIC prior to the commencement of the National Credit Code.

The start date for the new responsible lending obligations on Authorised Deposit-taking Institutions (ADIs) and Registered Financial Corporations (RFCs) will remain 1 January 2011