Labor welcomes the Government’s response to the independent review of small amount credit contract laws and urges to government to legislate the review’s recommendations as a matter of urgency in 2017 to ensure that consumers are better protected.
Labor believes that ensuring proper regulation of payday loans, small amount credit contracts and consumer leases is an issue of ongoing significance and will continue to work to strengthen laws in this space to better protect consumers from predatory behaviour.
Labor, when in government, enacted the National Consumer Credit Protection Act 2009 which implemented a national regime for the regulation of consumer credit for the first time. In 2012, Labor made further enhancements to this regime, including additional protections regarding small amount credit contracts and consumer leases, in response to growing concerns about improper behaviour by payday lenders.
It has taken the government some eight months to respond to this report, which was provided to government in early March this year.
Labor at the time urged the Government to act “quickly and decisively” to institute adequate protections for consumers.
The minister has said today in her response that legislation is expected to be progressed in 2017 depending on other legislative priorities.
Labor believes that consumer protection should be a high priority for any government and these changes should be given legislative effect as soon as possible.
The Government should not sit on its hands when it comes to consumer protection.
MONDAY, 28 NOVEMBER 2016