As part of consultation on the National Consumer Credit Protection Amendment (Credit Card and Home Loans) Bill Treasury has released the following draft documents for consultation:

• a Key Fact Sheet for home loans – to be provided on lenders’ websites or if a consumer makes an inquiry or makes an application.
• a Key Fact Sheet for credit cards – to be included in credit card application forms.
• a pre-contractual home loan disclosure document – to be provided before the consumer enters into the contract, and summarising key features in respect of the terms on which the lender is offering credit.
• a pre-contractual credit cards disclosure document – to be provided before the consumer enters into the contract.

The home loan disclosure document requires disclosure of the total amount to be paid back (including the loan amount and fees) based on minimum monthly payments over the full term of the loan at the current interest rate and current fees and charges.

The credit card disclosure document requires disclosure of the amount of minimum repayments (based on the fully drawn credit limit) and a warning which sets out the number of payments and term, the amount of fees and estimated interest at the Purchases interest rate and at the Cash Advances interest rate, if the borrower reaches the credit limit on the credit card and chooses to pay only the minimum monthly payment.

Submissions close on 28 March 2011.