NHT Advocacy to Stop the Debt Trap
NHT has joined other consumer advocates in calling for Parliament to vote against watered-down protections against predatory lenders.
NHT have supported a campaign led by the Consumer Action Law Centre to Stop the Debt Trap, and to reject the Federal Government’s proposed changes to laws governing high-cost payday loans and consumer leases, calling for Parliament to vote against the Bill in a submission to the Senate Economics Legislation Committee.
If enacted this Bill would:
- reduce people’s legal rights against lenders and brokers in relation to lending;
- reduce the incentives for lenders to comply with lending standards due to the removal of penalties for irresponsible lending;
- reduce requirements for lenders and brokers to check information on loan applications;
- dismantle the ASIC and APRA ‘twin peaks’ regulatory regime for bank lending.
The harm that will result from repealing responsible lending obligations would only turbocharge financial hardship, and in turn is likely to see more people fall victim to predatory lending.
To read the full letter sent to the Government click HERE.