The national regulation of consumer credit is a step closer with the passing of legislation in Queensland Parliament today (14/5/2010).
Minister for Fair Trading Peter Lawlor said the passing of the Credit (Commonwealth Powers) Bill 2009 ensures Queensland consumers will be protected at a national level when the responsibility for regulation of consumer credit transfers to the Commonwealth on 1 July 2010.
“The passing of this bill clears the way for strengthened consumer protection in credit and finance broking,” Mr Lawlor said.
“The Council of Australian Governments (COAG) decided in 2008 to deliver significant reform of the credit industry.
“As part of these reforms, COAG agreed to shift the responsibility for the regulation of credit and finance broking to the Commonwealth.
“The Australian Securities and Investments Commission, who will be the regulatory body for the new national code, have already opened up the process for credit providers to register their details in preparation for a licensing regime to take effect from 1 July 2010.”
Mr Lawlor said Fair Trading would continue to administer the 48% interest rate cap which helps to protect vulnerable Queensland consumers.
“The 48% cap has helped put a stop to excessive interest rates that some credit providers were charging.
“Queensland will maintain its interest rate cap while the Commonwealth considers whether to provide for an interest rate cap nationally.”
Credit providers can access details about their responsibilities at www.asic.gov.au/credit
Further information about consumer credit can be found at www.fairtrading.qld.gov.au or by calling 13 13 04.
