The Uniform Consumer Credit Code Management Committee has released the results of a research project which is an investigation of the effectiveness of mandatory comparison rates in guiding consumer choices. Mandatory comparison rates have been in force for two years (1 July 2003) and are due to sunset 30 June 2006 (dependent on the outcome of a Regulatory Impact Statement currently being undertaken).
The results comprise a first issues paper and consumer research issues paper, together entitled ‘The Effectiveness of Mandatory Comparison Rates: Information, capacity and choice’.
The Regulatory Impact Statement will be a key factor in deciding whether the comparison rate provisions will continue to apply in their current form, be changed, or deleted entirely from the Consumer Credit Code.
