The original comparison rate legislation was due to expire on 1 July 2006.
Subsequently, the sunset date was extended to 1 July 2007 to enable a review to be conducted as to the cost/benefit of this regime.
Recently, the sunset date has been further extended to 1 July 2009. Industry is upset as the requirement imposes significant costs without any clear benefit. Indeed, the comparison rate can be positively misleading as the cheapest product may not have the lowest rate!
The MFAA comparison rate module available by clicking here has been updated.
MFAA Regulation Module
The MFAA Regulation of Credit Providers and Finance Brokers module has been updated. The updated version is available byclicking here
The key amendments are as follows:
add details regarding the secret commission legislationin SA updated – reminding finance brokers of the need to disclose all commissions and benefits to borrowers in that state;
add details of the legislation relating to licensing of debt collectors; and
update information regarding the new WA finance brokers Code of Conduct
Proposed New Regulation For UCCC Lending
A Regulatory Impact Statement (RIS) prepared in March 2006 has recently been released for public information. Although directed at the fringe credit market, there are some initiatives in the RIS which may impact on mainstream lenders.
The proposed changes to the UCCC will be publicly released for consultation in due course. Accordingly, the appropriate time to make submissions on the proposals will be when that occurs.
Details of the proposals contained in the RIS may be reviewed by clicking here.
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