Bill
National Consumer Credit Protection Amendment (Small Amount Credit Contract and Consumer Lease Reforms) Bill 2018 [No. 2]
lapsed, as at 2019-04-11. (s) MCGOWAN, Cathy, MP portfolio.
- Sponsor
- Cathy McGowan
- Portfolio
- (s) MCGOWAN, Cathy, MP
Recorded stages
- introduced — 2018-10-22
- second reading — 2018-10-22
- other — 2019-04-11
Divisions
No divisions recorded. Most questions are decided on the voices; this does not establish that a bill was unopposed.
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2018-10-22.
This bill would implement recommendations from a 2016 review of small amount credit contract laws.
It would cap total payments under consumer leases, require equal repayments for small loans, ban door-to-door selling of leases at homes, and introduce anti-avoidance rules.
The bill also allows regulations to set a protected earnings amount for consumers of small loans and leases, preventing contracts that require too much of a person's income.
- Imposes a cap on total payments under consumer leases, which currently have no such cap.
- Requires small amount credit contracts to have equal repayments and equal payment intervals.
- Removes the ability for lenders to charge monthly fees on the remaining loan term when a consumer repays early.
- Prevents lessors and credit assistance providers from selling leases door-to-door at homes.
- Introduces broad anti-avoidance protections to stop providers from getting around the Credit Act and Code.
- Strengthens penalties to encourage compliance by lenders and lessors.
Vulnerable Australians who use small amount credit contracts or consumer leases, as well as lenders and lessors in those industries.
Sources
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