Credit now nationwide
(4 July 2008 – Australia) The Commonwealth Government has reached an agreement with the States and Territories to assume responsibility for regulation of all consumer credit.
At the Council of Australian Governments (COAG), the state and federal governments came to this conclusion for all consumer credit products, which includes personal loans, credit cards, pay day lending and micro loans.
The Minister for Superannuation and Corporate Law, Nick Sherry, said that the current consumer credit regulation is duplicated, patchy, very hard to change or even non-existent and does very little to protect Australians, whilst imposing unnecessary red tape on business.
The Australian Government will assume responsibility for regulating mortgages, mortgage brokers, trustee companies, non-bank lenders and margin loans.
The Green Paper on Financial Services and Credit Reform requested by COAG earlier this year established the need for quick consolidation of regulatory powers across the states.
Sherry also said that the change will close loopholes in current regulations that allow credit providers at the fringe end of the market to take advantage of people in desperate circumstances.
Business groups, including the Business Council of Australia and the Australian Bankers Association have put their support behind the move.
The Minister for Superannuation and Corporate Law, Nick Sherry, said that the current consumer credit regulation is duplicated, patchy, very hard to change or even non-existent and does very little to protect Australians, whilst imposing unnecessary red tape on business.
The Australian Government will assume responsibility for regulating mortgages, mortgage brokers, trustee companies, non-bank lenders and margin loans.
The Green Paper on Financial Services and Credit Reform requested by COAG earlier this year established the need for quick consolidation of regulatory powers across the states.
Sherry also said that the change will close loopholes in current regulations that allow credit providers at the fringe end of the market to take advantage of people in desperate circumstances.
Business groups, including the Business Council of Australia and the Australian Bankers Association have put their support behind the move.
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