Further detail on consumer credit reform

The Federal Government has released a statement setting out more information about the proposed Federal takeover of credit.  In summary it appears that:

1. the UCCC will be enacted as Federal law and extended to cover mortgages on investment properties;
2. financial brokers, advisors and credit providers are to be covered by a national licensing scheme, with lenders licensed by ASIC
3. there is to be one external dispute resolution body to which all lenders must belong;
4. the Corporations Act is to be extended to cover margin lending.

The timing for these changes is expressed to be the end of June 2009 with a  two-year transition.

The statement also contemplates a second phase of changes with possible further rules to stem predatory lending.  The timing for this phase is expressed to be the first half of 2010.