National Consumer Credit Protection Bill Introduced To Parliament

The National Consumer Credit Protection Bill introduced to the Commonwealth Parliament on 25 June 2009 differs in some material ways from the consultation draft released in April.

It is likely that it will take until September to pass through parliament. There is potential for further changes during the parliamentary process.

What is the bottom line?

In summary, all lenders and credit intermediaries who deal in UCCC regulated lending (which is extended to include loans to individuals in respect of residential properties for investment purposes) must by 31 December 2009:

• be a member of an ASIC approved external dispute resolution scheme (EDR)
• be registered with ASIC.

So, the key change is that consumers will generally have access to free dispute resolution through EDR. This is a positive outcome for consumers.