The Consumer Action Law Centre welcomes the opportunity to comment on the draft National Consumer Credit Protection Amendment (Credit Reform Phase 2) Bill 2012.
Briefly, this submission:
- strongly supports the inclusion of a general anti-avoidance provision in the National Consumer Credit Protection Act, and broadly supports the drafting of the proposed section 323A. We have made some recommendations for how to improve s 323A ;
- strongly supports the amendments to section 171 which remove the short term and indefinite lease exemptions currently in s171 of the National Credit Code.
- does not support the current drafting of section 171A(3) which would appear to regulate ‘Rent to Own’ arrangements as indefinite leases. Rent to Own arrangements are in all substantial terms a credit contract and should be regulated as such;
- supports the extension of the National Credit Code to regulate private lending; and
- provides comments on the provisions regarding small business credit contracts (now removed from the Bill) and investment credit contracts.