How the proposed consumer credit laws will benefit consumers
- Protect consumers from being offered loans that are clearly unsuitable for them or that they cannot afford to repay
- Enhance consumers’ understanding of credit products by greater disclosure of information, including fees, charges and commissions
- Increase the maximum threshold for mortgage hardship cases from the current $312,400 to $500,000 and puts in place a new, flexible power to raise this further as needed
- Assist consumers to make informed choices by creating a more level playing field on access to information between the consumer and the lender or broker
- Ensure consumers receive reliable credit services from suitably qualified and competent persons
- Protect consumers in borrowing for residential investment property
- Provide a national regulator, ASIC, with enhanced powers to enforce responsible lending conduct standards
- Give universal access for consumers to low-cost external dispute resolution schemes
- Provide the option for the first time of opt-in, tribunal-like access to the Federal Magistrates Court
- Provide comprehensive regulatory coverage of the credit industry for previously unregulated sectors such as mortgage brokers
- Broaden criminal and penalty sanctions to safeguard industry standards
- Enhance consumer protection through improved access to consumer remedies
