Bill
National Consumer Credit Protection Amendment (Small Amount Credit Contract and Consumer Lease Reforms) Bill 2020
lapsed, as at 2021-08-10. (s) WILKIE, Andrew, MP portfolio.
- Sponsor
- Andrew Wilkie
- Portfolio
- (s) WILKIE, Andrew, MP
Recorded stages
- introduced — 2020-11-30
- second reading — 2020-11-30
- other — 2021-08-10
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 2020-11-30.
This bill would strengthen protections for people who take out payday loans or rent-to-buy household goods.
It would cap what can be paid under a consumer lease, require equal loan repayments, and stop lenders from charging monthly fees after an early repayment.
It would also cut the protected earnings threshold for payday loans from 20% of gross income to 10% of net income, and apply a similar 10% net income cap to consumer leases.
- It would cap total payments under a consumer lease.
- It would require equal repayments and equal intervals for small amount credit contracts.
- It would remove the ability to charge monthly fees after early repayment.
- It would ban marketing of consumer leases at homes.
- It would introduce anti-avoidance measures and strengthen penalties.
- It would lower the protected earnings threshold for payday loans and introduce one for consumer leases.
Consumers taking out small amount credit contracts (payday loans) and consumer leases (rent-to-buy schemes), as well as the providers of those products.
Sources
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