Bill
National Consumer Credit Protection Amendment (Small Amount Credit Contract and Consumer Lease Reforms) Bill 2019 (No. 2)
lapsed, as at 2022-07-25.
- Sponsor
- GRIFF, Sen Stirling
- Portfolio
- Not recorded
Recorded stages
- introduced — 2019-12-02
- second reading — 2019-12-02
- second reading — 2020-11-09
- second reading — 2021-03-15
- other — 2022-07-25
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 2019-12-02.
The bill would overhaul rules for payday loans and rent-to-buy schemes.
It would introduce a cap on total payments under consumer leases, require equal repayments for small loans, and ban door-to-door sales of leases at homes.
The government says the bill implements most recommendations from a 2016 review and would allow regulations to cut the protected earnings limit for Centrelink recipients from 20% of gross income to 10% of net income.
- Introduce a cap on total payments under a consumer lease.
- Require equal repayments and equal payment intervals for small amount credit contracts.
- Remove the ability to charge monthly fees on the residual term of a loan when a consumer repays early.
- Prevent lessors and credit assistance providers from selling consumer leases door-to-door at homes.
- Introduce broad anti-avoidance protections for small amount credit contracts and consumer leases.
- Strengthen penalties to increase compliance incentives.
Consumers taking out small amount credit contracts or consumer leases, and providers of those products.
Sources
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