Submission from the Stop the Debt Trap Alliance: National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020
The Stop the Debt Trap Alliance is a coalition of consumer advocacy organisations from around Australia, including financial experts, community advocates and service providers. Every day our organisations hear from people who have been trapped in crippling debt due to high-cost fast loans and harmful consumer leases.
The provisions in the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 relating to Small Amount Credit Contracts (SACCs) and consumer leases are watered-down versions of the recommendations made by the independent SACC Review, and will not adequately protect consumers from predatory lending practices. As such, we strongly oppose the Bill and urge Parliament to vote against it in its entirety.
We urge the Federal Government to introduce SACC and consumer lease law reforms in line with the recommendations of the Review to reduce the harm caused by predatory lending practices and ensure people have enough money for essential living expenses.
