subscribe to our newsletter sign up

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
subscribe to our newsletter sign up
Recommended by Spike Native Network
Dave Shegonnacrash - Is that the tall poppies that pay your wages or fees? When tall poppies fall, jobs vanish quickly. I will be cutting a few jobs when the crash comes........
Anonymous - It is time that we had a Roya Commission just into those dreadful government departments who appear to do everything to protect the perpetrators and.......
Ross Cardillo - And i ask the question again, who is going to jail from Commonwealth Bank for their actions? They should be sharing a cell with their mates at ASIC
Anonymous - Really....$300k is a punishment amount!!!!! and on top asking them if they are happy....Really shame on ASIC, sorry to say, they are IMPOTENT at every.......