The Financial Sector Reform Bill 2022 introduced by the Government into the House of Representatives includes Schedule 4 which amends the National Consumer Credit Protection Act provisions relating to Small Amount Credit Contracts and Consumer Leases.
UPDATE: The Bill was passed by the House of Representatives on 28 September 2022 and will be sent to the Senate.
UPDATE: The Bill has been referred to the Senate Economics Legislation Committee. Its Report is due
20 October 2022.
UPDATE: The Bill was passed by both houses of Parliament on 2 December 2022.
The changes aim to reduce the risk of financial hardship for consumers of these products, through for example, new caps and protected earnings amounts for consumer leases, enhanced and extended protected earnings amounts for SACCs, prohibitions on certain types of unsolicited marketing of SACCs and consumer leases, new disclosure obligations, enhanced sanctions for misconduct and the introduction of new anti-avoidance provisions.
The changes were recommended by the Review of small amount credit contracts – Final report in 2016 and were previously contained in the now lapsed National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020. Background.
The amendments generally commence on the day after the end of the period of six months beginning on the day the Financial Sector Reform Bill 2022 receives Royal Assent. The anti-avoidance measures in Schedule 4 to the Financial Sector Reform Bill 2022 commence on the day after the Financial Sector Reform Bill 2022 receives Royal Assent.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
