In a recent speech, Stephen Jones, the Assistant Treasurer and Minister for Financial Services outlined the Labor Government’s approach to responsible lending obligations, Buy Now Pay Later regulation and payday lending and consumer leases.

Responsible lending: the Government will not be removing the current responsible lending obligations of banks as was proposed in the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 which lapsed when the election was called.

Buy Now Pay Later: Mr Jones includes Buy Now Pay Later within the classification of ‘credit products’. He said he will be consulting on options with key stakeholders on how to improve the regulation of credit in Australia, reflecting the unique nature of BNPL products.

Payday lending and consumer leases: Mr Jones said the Government would proceed with payday lending and consumer leasing reform as recommended by the Review of small amount credit contracts – Final report in 2016.

He did not specify whether he would re-introduce the National Consumer Credit Protection Amendment (Small Amount Credit Contract and Consumer Lease Reforms) Bill 2019 (No. 2) or a modified version of the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 or a new Bill.

Parliament resumes on 26 July 2022.

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Author: David Jacobson
Principal, Bright Corporate Law
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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.