Proposed changes to responsible lending laws that are due next month are the subject of FINSIA’s latest debate.
The National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 has already been the subject of heated discussions everywhere from the Senate to social media.
But the fact the laws were introduced after the Global Financial Crisis and are now being repealed after the impact of COVID as a way of stimulating the economy highlights their importance.
The latest submission by 10 consumer groups says the changes strip borrowers of important legal rights with banks and brokers.
Banks have responded, saying the move will be a win for customers as the rollback will cut through red tape that focuses on minor, discretionary and retrospective spending that is burdensome.
Australian Banking Association CEO Anna Bligh told the Economics Legislation Committee: “The process of getting a loan is onerous. Banks…