Safe Lending Laws Update

Written on the 25 March 2021 by SAFCA

As a participant in the Save the Safe Lending Laws campaign, led by Choice, Financial Counselling Australia and the Consumer Action Law Centre, SAFCA welcomes the Government's decision last week to hold the vote on the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill.

The earliest the Bill can be voted on is May, however June is the more likely option.

If the Government scraps crucial consumer protections that were introduced to prevent the kinds of reckless lending that led to the Global Financial Crisis, banks will be given the green light to sell loans that push people into financial hardship.

For the Bill to be blocked, three of five cross bench senators need to vote 'no'. Two of these senators, Senator Stirling Griff and Senator Rex Patrick, are from South Australia.

SAFCA has written to the senators expressing their serious concerns about what the proposal to roll back Australia's responsible lending laws and urging them to vote against the Bill.

SAFCA Chief Executive also added her voice to a full-page ad in the Advertiser alongside Alan Kirkland, Chief Executive Officer, CHOICE  and Uniting Communities and Simon Schrapel AM, Chief Executive of Uniting Communities.

Wendy said: "Financial counsellors help people every day who have been hurt by harmful lending by big banks. The impact of being sold unaffordable debt deeply affects relationships with family and friends, increases social isolation and exacerbates mental health issues. After all South Australians have gone through with COVID-19, we can't afford a debt disaster".