Footnotes

Chapter 1 - Introduction

[1]        These were from QBE Insurance and Dr Therese Wilson from Griffith Law School.

[2]        For example, the PJC received submissions from the Credit Ombudsman Service, Mortgage and Finance Association of Australia, Aussie, Can Do Credit Pty Ltd, National Legal Aid, Action Cash, Fundco Pty Ltd, Action Finance and SEQUAL, among others.

[3]        Explanatory Memorandum, p. 3.

[4]        Explanatory Memorandum, p. 3.

[5]        The Consumer Code is at Schedule 1 of the NCCP Act.

[6]        Explanatory Memorandum, paragraph 2.4.

[7]        Treasury, National Credit Reform: Enhancing confidence and fairness in Australia's credit laws—Green Paper, July 2010, p. 106.

[8]        National Consumer Credit Protection Act 2009, s. 111.

[9]        Treasury, National Credit Reform—Green Paper, July 2010, p. 1.

[10]      ASIC, Regulatory Guide 209, March 2011, p. 4.

[11]      ASIC, Regulatory Guide 209, March 2011, p. 4.

Chapter 2 - The short-term loan provisions

[1]        Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011, Chapter 5, p. 49.

[2]        Explanatory Memorandum, paragraph 4.23.

[3]        Schedule 4, item 15, section 39A and section 39B.

[4]        Explanatory Memorandum, paragraph 5.36, p. 67.

[5]        Explanatory Memorandum, Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011, Table: 'Comparison of key features of new law and current law', p. 62.

[6]        See http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=1852 (accessed 22 November 2011).

[7]        Senator the Hon. Nick Sherry, 'New National Responsible Lending Laws', Media Release, 27 April 2009, http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2009/038.htm&pageID=003&min=njs&Year=&DocType (accessed 22 November 2011).

[8]        Explanatory Memorandum, Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011, Chapter 11: Regulation Impact Statement June 2011, paragraph 11.4.

[9]        The Hon. Bill Shorten, Assistant Treasurer, Minister for Financial Services and Superannuation, House of Representatives Hansard, 21 September 2011, p. 10,952.

[10]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, p. 56.

[11]      Cash Converters, Submission 20, Attachment 3, Professor Stephen Corones et al, Phase two of the national credit reforms examining the regulation of payday lenders, March 2011, Queensland University of Technology, p. 7.

[12]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, pp 56–57.

[13]      Cash Converters, Submission 20, p. 3.

[14]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011,
pp 56–57; Can Do Credit Pty Ltd, Submission 15 to the PJC inquiry, p. 1.

[15]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, p. 114.

[16]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, p. 61.

[17]      Marcus Banks, Caught Short: Exploring the role of small, short-term loans in the lives of Australians, Interim Report, RMIT University, August 2011.

[18]      Zac Gillam and the Consumer Action Law Centre, Payday loans: Helping hand or quick sand? Examining the growth of high-cost short-term lending in Australian, 2002 -2010, September 2010, http://www.consumeraction.org.au/downloads/PayDayLendingReport-FINAL.pdf (accessed 1 November 2011).

[19]      National Australia Bank, Do you really want to hurt me? Exploring the costs of fringe lending – a report on the NAB Small Loans Pilot, March 2010.

[20]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, p. 114.

[21]      Ms Catherine Uhr, Senior Solicitor, Legal Aid Queensland, representing National Legal Aid, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 43.

[22]      Consumer Action Law Centre, Submission 8, pp 3–4.

[23]      Consumer Action Law Centre, Submission 8, pp 3–4.

[24]      Redfern Legal Centre, Submission 7, Attachment 1, p. 6.

[25]      Redfern Legal Centre, Submission 7, Attachment 1, p. 5.

[26]      Financial Counselling Australia, Submission 17, p. 2.

[27]      Ms Felicia Andersen, Community Care Sustainable Living Coordinator, Anglicare Sydney,

Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, pp 67–68.

[28]      Mr Robert Bryant, Money 3, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 22.

[29]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, p. 116.

[30]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, p. 116.

[31]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, chapter 5.

[32]      Mr Peter Cumins, Managing Director, Cash Converters, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 53.

[33]      Cash Converters, Submission 20, p. 6; National Financial Services Federation, Submission 23, p. 6.

[34]      Explanatory Memorandum, Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011, Chapter 11: Regulation Impact Statement June 2011, paragraphs 11.108–11.111.

[35]      Cash Converters, Submission 20, pp 9–10.

[36]      First Stop Money, Submission 6, p. 9.

[37]      Mr Paul Baril, Committee Member, Financiers' Association of Australia, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 20.

[38]      Cash Converters, Submission 20, p. 6. See also First Stop Money, Submission 6, p. 9.

[39]      Mr David Prosser, Chief Executive Officer, Moneyplus, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 28.

[40]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, p. 115.

[41]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, p. 115.

[42]      Mr Paul Baril, Committee Member, Financiers' Association of Australia, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 19.

[43]      Money 3 Corporation, Submission 16, p. 3.

[44]      First Stop Money, Submission 6, p. 13.

[45]      Super Nexus, Submission 13, p. 2; Cash Converters, Submission 20, p. 7.

[46]      Mr Christian Mikula, Manager, Consumer Credit Unit, Retail Investor Division,
Department of the Treasury, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 72.

[47]      Cash Converters, Submission 20, p. 9.

[48]      National Financial Services Federation, Submission 23, p. 9.

[49]      Mr Baril, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 20.

[50]      National Financial Services Federation, Submission 23, p. 18.

[51]      Financiers' Association of Australia, Submission 40 to the PJC inquiry, p. 28.

[52]      First Stop Money, Submission 6, p. 15.

[53]      Cash Converters, Submission 20, p. 9.

[54]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, Chapter 5.

[55]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Consumer Credit and Corporations Legislative Amendment (Enhancements) Bill 2011, p. 113.

[56]      Ms Catherine Uhr, National Legal Aid, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 44.

Chapter 3 - The bill's other provisions: hardship variations, reverse mortgages, remedies for 'unfair or dishonest conduct' and consumer leases

[1]        The recommendations in this chapter are broadly the same as those proposed in the report by the Parliamentary Joint Committee on Corporations and Financial Services.

[2]        The bill does not expressly state that in order to apply for the contract to be varied, the borrower's capacity to repay must be affected by hardship.

[3]        Anglicare Victoria, Submission 39 to the PJC inquiry, p. 2; Good Shepherd Youth and Family Service, Submission 23 to the PJC inquiry, p. 3.

[4]        ANZ, Submission 10, p. 2.

[5]        Credit Ombudsman Service, Submission 2 to PJC inquiry, p. 2.

[6]        GE Capital Australia and New Zealand, Submission 26, p. 2.

[7]        Abacus is the industry body representing the Australian mutual sector.

[8]        Mr Ian Gilbert, Policy Director, Australian Bankers' Association, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, pp 12–13; Abacus, Submission 9, p. 3.

[9]        ANZ, Submission 10, p. 3.

[10]      Mr Ian Gilbert, Policy Director, ABA, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 13.

[11]      Australian Finance Conference, Supplementary submission 25, p. 3.

[12]      See Investopedia, http://www.investopedia.com/terms/r/reversemortgage.asp#axzz1f8o9xfZA (accessed 30 November 2011).

[13]      Redfern Legal Centre, Submission 7, p. 7.

[14]      Redfern Legal Centre, Submission 7, p. 7.

[15]      SEQUAL, Submission 44, Parliamentary Joint Committee on Corporations and Financial Services, p. 13. Australian Seniors Finance, Mrs Julie Campbell, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 4.

[16]      Mrs Julie Campbell, Australian Seniors Finance, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 2.

[17]      SEQUAL, Submission 44, p. 14.

[18]      SEQUAL, Submission 44, p. 14.

[19]      Mr Kevin Conlon, SEQUAL, Committee Hansard, Parliamentary Joint Committee on Corporations and Financial Services, 24 October 2011, p. 11.

[20]      Aussie, Submission 10 to PJC on Corporations and Financial Services, p. 3.

[21]      Consumer Action Law Centre, Submission 8, p. 16.

[22]      Consumer Credit Legal Centre (NSW) Inc., Submission 24, p. 12.

[23]      Good Shepherd Youth and Family Services, Submission 23 to PJC on Corporations and Financial Services, p. 4.

[24]      Consumer Action Law Centre, Submission 8, pp 17–18.

[25]      Good Shepherd Youth and Family Services, Submission 23 to PJC on Corporations and Financial Services, p. 5.

[26]      ANZ, Submission 10, p. 4.

[27]      See PJC on Corporations and Financial Services, Report on the Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011, Chapter 6.

[28]      Explanatory Memorandum, paragraph 6.9.

[29]      Redfern Legal Centre, Submission 7, p. 9.

[30]      Redfern Legal Centre, Submission 7, p. 9.

[31]      Consumer Action Law Centre, Submission 8, p. 15.

Additional comments by Coalition Senators

[1]        Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011, December 2011, p. 118.

[2]        Money 3, Submission 16, p. 2.

[3]        Bill Shorten, Media Release, 25 August 2011, ‘Reforms to Payday Lending’.

[4]        Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011, December 2011, paragraphs 5.72-5.76.

[5]        Australian Bankers’ Association, Submission 18, p. 16.

[6]        Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011, December 2011, paragraphs 5.180.