The Minister for Financial Services and Superannuation has released for public consultation draft legislation to amend the Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011 (the Enhancements Bill).
The Enhancements Bill was introduced into Parliament on 21 September 2010. The Bill was subsequently referred to the Parliamentary Joint Committee on Corporations and Financial Services and the Senate Economics Legislation Committee. These committees reported on 2 December and 7 December 2010 respectively.
These amendments to the Enhancements Bill respond to recommendations contained in these committee reports, and to other issues raised in consultations with stakeholders.
The amendments propose changes to:
- the regulation of reverse mortgages;
- hardship applications under the National Credit Code (Code);
- arrangements regarding the caps on the maximum cost payable in respect of both small amount credit contracts and all other credit contracts;
- the prohibition on licensees using terms such as ‘pre-approved’; and
- changes to allow for the introduction of disclosure requirements in relation to the use of employer payment authorisations.