OneNews 17 Sept 2013
A Bill to strengthen protections for borrowers and make wide-ranging changes to consumer credit and repossession laws passed its first reading in Parliament today.
Consumer Affairs Minister Craig Foss says the Credit Contracts and Financial Services Law Reform Bill is the largest overhaul of consumer credit law in a decade.
“The Bill will crack down on unscrupulous lenders who leave borrowers and their families trapped in a spiral of uncontrolled debt,” Mr Foss said.
The changes will require all lenders to act responsibly and provide consumers with the information they need to properly consider any loan agreement, he said.
The Bill makes it illegal to lend money to someone whose loan repayments would be likely to result in substantial hardship.
It also requires lenders to properly consider applications by borrowers for hardship relief.