Consumer Action has provided a submission on the draft Fair Trading (Small Amount Credit Contracts and Consumer Leases) Amendment Bill 2020 (SA) (the SA Bill).
Consumer Action strongly supports the South Australian Government’s plans to introduce enhanced protections for South Australians in relation to small amount credit contracts (payday loans) and consumer leases. Passing the SA Bill would help significantly reduce the harm these high-cost credit products are causing Australians under existing Federal Government credit laws.
Payday loans and consumer leases are primarily marketed at people doing it tough financially, and the exorbitant costs that are charged for these products makes it clear the market is failing people. The SA Bill would introduce widely agreed upon protections that reflect expert recommendations from a review commissioned by the Federal Government over four years ago. Despite the solutions to the problems in the market being known for four years, the Federal Government has failed to deliver these reforms.
The SA Bill would significantly decrease the risk of payday loans and consumer leases causing South Australians to fall into debt spirals or financial hardship. The SA Bill can co-exist with federal legislation regulating consumer credit. Such is our support for the SA Bill that we consider this a model that other state governments should follow, to step in where the Federal Government has failed to act.
Read our submission (PDF), or below:201106_SA_SACC_Bill_CALCSubFINAL