Phase two of national credit reforms released for comment

The latest tranche of reforms to Australia's credit laws has been released for public comment. The Green Paper, "National Credit Reform - Enhancing confidence and fairness in Australia's credit law", sets out proposed reforms:

• enhancements to the regulation and tailored disclosure for reverse mortgages;
• extension of the National Credit Code to include disclosure requirements for consumer leases and linked credit providers;
• regulation of credit for personal use and peer to peer lending;
• regulation of various aspects of credit card lending;
• possible extension of unjust conduct provisions to credit service providers; and
• further enhancements to the National Credit Code.

The Government will also consider:

• regulation of the provision of credit to small business;
• regulation of credit for investment loans other than margin loans;
• examination of mechanisms, including state approaches to interest rate caps, to address predatory or fringe lending;
• an examination of the need for any enhancements to responsible lending provisions for post-entry conduct;
• a review of the regulation of credit advertising directed at vulnerable consumers;
• reform of mandatory comparison rates; and
• a possible review of credit licensing requirements for debt collectors.