International Law

Consumer Credit Code update

The MCCA has agreed to refinements to the Consumer Credit Code. The amendments are intended to enhance the operation of the Consumer Credit Code by:

1. Tightening current exemptions to the Code for short term credit and pawnbrokers ;
2. Dealing with abuses of business purpose declarations aimed at avoiding the Code;
3. Enhancing consumer remedies under the Code by broadening existing powers of courts to review credit fees and charges and changes of interest;
4. Providing Government Consumer Agencies with standing to conduct proceedings under the Code on behalf of consumers;
5. Prohibiting lenders from taking ?blackmail? security over essential household items; and
6. Requiring that consumers be provided with information about their rights and responsibilities regarding direct debit payment arrangements

Full post as published by Australian Regulatory Compliance Review on May 27, 2008 (boomark / email).