National Consumer Credit

Please find below a summary of the key points raised by Senator Nick Sherry today, which provides the latest update for the Commonwealth takeover of credit and finance broking.

Although it is envisaged that legislation will be in place by mid 2009, it is understood there will be a two year transition period.

Phase One

Phase one legislation to be in place by mid 2009. Key elements of the Phase One Action Plan will include:

• enacting the existing State legislation, the Uniform Consumer Credit Code (UCCC), into Commonwealth legislation;

• establishing a national licensing regime to require providers of consumer credit and credit-related brokering services and advice to obtain a licence from ASIC;