Catholic Social Services Australia is among a coalition of more than 200 groups and individuals to sign an open letter calling on parliamentarians to block proposed changes to the responsible lending laws. Source: Australian Financial Review.
The letter says the Morrison Government’s plans to ease lending obligations will inflict long-term damage on the community and will delay Australia’s economic recovery from the COVID-19 crisis.
The letter says the changes would lead to a “ debt disaster” and urged parliamentarians to block this harmful law.
Under the new proposal, many of the protections for consumers established under the National Consumer Credit Protection Act 2009 would be removed and the suitability of loans would be assessed by the prudential regulator, with the corporate cop sidelined from the process.
Treasurer Josh Frydenberg said the reforms were the most significant in a decade and would remove impediments to the flow of credit. He also argued the reform process would not abandon vulnerable consumers.
Mr Frydenberg drew attention to the statement from the Council of Financial Regulators – which includes members from the Reserve Bank, APRA and ASIC – agreeing that the changes would support the supply of credit.
Among the signatories to the letter voicing opposition to the changes are former Australian Competition and Consumer Commission chairman Allan Fels, the Australian Council of Trade Unions, the Finance Sector Union and the Salvation Army.
Broad church wants responsible lending laws retained (By James Frost, Australian Financial Review)