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Exposure Draft - National Consumer Credit Protection Amendment (Credit Card and Home Loans) Bill

Date:

Friday, 4 March 2011

Content ID:

1985

Abstract:

The National Consumer Credit Protection Amendment (Credit Card and Home Loans) Bill is proposed to be introduced into Parliament.  It will amend the National Consumer Credit Protection Act 2009 (including the National Credit Code) to give effect to the Government's Fairer, Simpler Banking policy and introduce a requirement for lenders to give borrowers a Key Facts Sheet for home loans.

These new reforms will:

  • Place limits on how much credit card accounts can go over their specified limit and abolish fees when they do so.
  • Require credit card providers to allocate repayments to higher interest debts first.
  • Ban unsolicited credit limit extension offers unless pre-agreed to by the consumer.
  • Make it mandatory for credit card application forms to include a clear summary of key account features.
  • Introduce a requirement for home loan lenders to give potential borrowers a Key Facts Sheet so they can compare between home loans.

Other reforms announced as part of the Fairer, Simpler Banking policy (such as requiring lenders to inform consumers about the implications of only paying minimum repayment amounts on their statements) are intended to be introduced through regulations to the National Consumer Credit Protection Act 2009, and will be the subject of further consultation in the near future.

Making a submission

Interested parties are invited to comment on the paper. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Tuesday, 8 March 2011

Address written submissions to:
Manager
Investor Protection and Credit Unit
Corporations and Financial Services Division
The Treasury
Langton Crescent
PARKES ACT 2600
Email: Christian.mikula@treasury.gov.au

For enquiries, please call Christian Mikula (02) 6263 2046 or Joel Tu (02) 6263 3001.

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Exposure Draft  355.91kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Exposure Draft  9,007.85kb

Related Items:

Submissions: Exposure Draft - National Consumer Credit Protection Amendment (Credit Card and Home Loans) Bill - 15/03/2011

Treasury has received twelve submissions in response to this consultation. There were eleven public submissions, and one confidential submission. The public submissions are listed below and are accessible by selecting the author.

The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or the Treasury.

Treasury Portfolio Ministers - Link to website MoreSuper  - Link to website Carbon Price Modelling - Link to Website Clean Energy Future  - Link to website Review of compensation arrangements for consumers of financial services - Consultation Paper  - Link to website

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