Hardship threshold to be increased in new consumer credit bill

Senator Nick Sherry, Minister for Superannuation and Corporate Law, has announced that the Government will increase to $500,000 the threshold under which consumers can request a change to certain terms of their credit contract on the grounds of hardship, or a postponement of enforcement proceedings.

The threshold is currently $312,400 but that is set to change again on 12 May.

The change will be in the National Consumer Credit Protection Bill 2009, to be released in full for public exposure on Monday, April 27, 2009.

The threshold changes will take effect once the National Consumer Credit Protection Act commences, which is expected to occur on 1 November 2009.

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