Inquiry into Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011

2 December 2011

© Commonwealth of Australia 2011
ISBN 978-1-74229-542-8

Referral of the Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011
Conduct of inquiry
Acknowledgements
Notes on references
Background
Purpose of the Bill
Timing of introduction of the phase two measures
Report structure

Support for the new approach to hardship variations and enforcement of credit contracts
Concerns with draft provisions relating to hardship variations
Concerns with provisions relating to enforcement of credit contracts

In-principle support for the proposed regulation of reverse mortgages
Concerns raised with technical aspects of provisions

Support for the proposed regulation of consumer mortgages
Concerns with the proposal to align consumer lease and credit contract regulations

Overview of the proposed reforms
Features of the short-term loan industry
Consumer profile – financial circumstances of short-term loan borrowers
The case for the short-term loan reforms
Industry concerns with the short-term loan provisions
Other sources of short-term credit contracts

Restrictions on certain representations and advertisements
Restrictions on the use of certain terms including 'independent' and 'financial counsellor'
Remedies for unfair or dishonest conduct
Amendment to section 250R of the Corporations Act 2001

Concerns with the proposal