Consumer Action welcomes the opportunity to provide comment on the Financial Services and Credit Reform Green Paper, released by the Australian Government Treasury on 3 June 2008.
Consumer Action strongly supports Option 2 proposed on page 12 of the Green Paper, where the Commonwealth Government would assume responsibility, not only for mortgage credit and advice, but also for other forms of consumer credit, such as credit cards, car finance, and other personal loans (including payday loans). As outlined below, we believe this approach would ensure comprehensive consumer protection, would minimise gaps and opportunity for regulatory gaming and be least costly for Governments and industry.
The remainder of this submission will outline:
- Trends in consumer credit markets over recent years;
- The proposed framework for national regulation of consumer credit, including licensing, enforcement and policy development;
- The coverage of consumer credit regulation; and
- The regulation of property spruikers (investment advice).
To read our submission, click here: Financial Services and Credit Reform Green Paper.