Tighter credit legislation on the cards

Tighter credit legislation on the cards

Credit cards, Australian credit market, retail credit, Australian Treasury, Scott Morrison, retirement planning, retirement savings, wealth management

The government has released an initial draft of new legislation designed to make credit cards easier and safer for Australians to use.

The new draft legislation includes a number of reforms to existing laws, which will ban credit providers from offering “unsolicited credit limit increases”, make responsible lending obligations tougher, simplify the way interest charges are calculated, and allow credit card users to lower their credit limit or cancel their contracts.

“The purpose of the amendments is to reduce the likelihood of consumers being granted excessive credit limits, to align the way interest is charged with consumers’ reasonable expectations and to make it easier for consumers to terminate a credit card or reduce a credit limit,” the draft said.

Treasurer Scott Morrison said the new legislation will “protect vulnerable Australians from predatory behaviour” and improve credit card customer outcomes.

“The reforms will help ensure that consumers can manage their credit card debts and help prevent the debt cycle that many Australians find themselves in,” he said.

“In addition it will prohibit the overly complex and unfair way in which interest is calculated on many credit cards.”


Tighter credit legislation on the cards
nestegg logo
Promoted Content
Recommended by Spike Native Network
Dr Terry Dwyer, Dwye... - Crocodile tears from the people who have driven land prices ever upwards with near zero interest rates? Where did these people learn economics?.......
Kevin - A very small investment in May/ June in Ethereum has literally made 2 million. And rising. Would have made more had I bought in March, but I needed.......
KateGan - This is our age of digital crimes... The only way to prevent such things is to raise the awareness about cybersecurity measures that every business.......
DavidL - Given that PPL is government funded, why doesn't the government foot the bill for the extra 9.5% - over the whole PPL period, not just 6 months? Why.......