Banking Review

Regulation promises safer lending

Now that ASIC has issued its guidelines detailing obligations for responsible lending,
credit institutions can start their final phases of compliance

BY ELTON CANE

In July this year, the first stages of the newly revised Australian Consumer Law will come into effect. Based on the existing consumer provisions of the Trade Practices Act 1974, it has been enhanced in a number of areas and applied nationally to replace different state regulations.

For lenders – such as banks, credit unions and finance companies – ans credit assistance providers – such as mortgage or finance brokers – the most important changes are to the consumer credit and unfair contract term regulations.

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