Legislation

The National Consumer Credit Protection Reform Package

The National Consumer Credit Reform Package

Content of the Reform Package

This Reform Package delivers on the first phase of the Council of Australian Governments' agreements of 2008 for the Commonwealth to assume responsibility for the regulation of consumer credit.

Phase One of the Reform Package includes:

  • a comprehensive licensing regime for all providers of consumer credit and services;
  • responsible lending conduct requirements on licensees – not to provide credit products and services that are unsuitable for the consumer's needs and that the consumer does not have the capacity to repay;
  • improved sanctions and enhanced enforcement powers for the regulator, the Australian Securities and Investments Commission (ASIC);
  • expanded consumer protection through court arrangements, remedies for consumers and penalties for misconduct; and
  • an expanded scope for the National Credit Code to include credit provided to purchase, renovate, improve or refinance a residential investment property.

The national regime largely replicates the State-based Uniform Consumer Credit Code  as the National Credit Code.   To assist readers in comparing the National Credit Code contained in the National Consumer Credit Protection Bill 2009 to the State-based Uniform Consumer Credit Code, a comparison table has been provided.

Miscellaneous