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Submission to Treasury on the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020

February 2021

safe lending laws event - canberra

Safe lending laws protect people and the Australian economy. If passed, the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 will dismantle consumer protections that have been developed through decades of considered consultation and policy development.

In January 2020, CHOICE asked members of the community to share with us why safe lending laws matter. Over 1300 people from every state and territory across Australia responded. Many shared powerful stories of being directly affected by harmful lending, including:

  • family members and friends of people with severe disabilities who were sold debt they could never repay
  • school-leavers who were sold into expensive credit cards
  • former bank staff members who lifted a lid on the high-pressure sales culture inside many bank branches
  • people on disability pensions who were targeted by lenders with high-cost loans
  • frontline charity workers, including financial counsellors and suicide prevention workers, who have seen first-hand the devastating impact that poor lending practices has on families and the community
  • concerned parents, grandparents, and great-grandparents who worry about the future for their family if this harmful law is passed.

The stories speak of the devastation that unfair lending has caused and will continue to cause on the Australian community, and why CHOICE does not support the government's proposal to axe safe lending laws.

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