Yesterday COAG agreed on the recommendations of the Productivity Commission to a new consumer policy framework comprising a single national consumer law based on the Trade Practices Act.
The reform plan will be implemented over the next two years in two stages:
1. The first phase will see the transfer of responsibility for trustee companies and existing key credit regulation, including the Uniform Consumer Credit Code which is to be introduced in the first half of 2009; and
2. The second phase will see the regulation of the remaining areas of consumer credit, including pay-day lending (for example pawnbrokers who are currently exempt from the Code), credit cards, store credit, investment and small business lending and personal loans. The second phase is to be completed in the first half of 2010.
We will keep you updated on the implementation of the new reforms.
David Carter
T: 61 2 8233 9550
E: david.carter@dibbsbarker.com
Peter Ryan
T: 61 2 8233 9549
E: peter.ryan@dibbsbarker.com
