The National Consumer Credit Protection legislative
package, which will effect the transfer of responsibility
for regulation of consumer credit to the Commonwealth, was
introduced into Parliament today.
The timing for implementation of the national Australian credit
licence regime remains the same. All persons currently engaging in
credit activities will need to apply for registration between 1
November 2009 and 31 December 2009 and will subsequently need to
apply for a licence by 30 June 2010. From 1 January 2010, any
person engaging in credit activities for the first time must apply
for a licence.
One significant change is that the responsible lending conduct
obligations will commence on 1 January 2011, to allow industry time
to implement systems and procedures required to comply with those
obligations. Previously the government had been indicating it would
commence on 1 January 2010.
At a first glance, there appears to have been some changes made
in response to submissions on the exposure drafts of the
legislative package. This includes that credit providers who deal
only with their own proprietary credit contracts or consumer leases
have been granted relief from the credit assistance responsible
lending provisions. They remain subject to the responsible lending
obligations imposed on credit providers.
Point-of-sale retailers such as car dealerships or retail
outlets will be exempt from the requirements that facilitate credit
assistance to consumers. The Government will examine the issue of
regulatory oversight within the next 12 months.
We will be updating our detailed paper on this proposed
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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