Mutual ADIs applaud COAG decision on Credit Regulation
04 July 2008
Credit unions and mutual building societies welcome the agreement reached by the Council of Australian Governments (COAG) to transfer the regulation of all consumer credit to the Federal Government.
“Australia needs a uniform and consistent national framework to improve consumer protection - a framework that subjects fringe credit providers and intermediaries to regulatory oversight in the same way as credit unions and building societies,” Abacus CEO Louise Petschler said.
“A national framework will improve consumer protection and create a level playing field for credit providers.”
Abacus – Australian Mutuals is the industry body for Australia’s credit unions and mutual building societies. There are 140 credit unions and mutual building societies in Australia with more than 4.5 million members and around $65 billion in assets.
“Whilst welcoming the reforms, we urge the Government not to place credit under the costly Financial Services Regulation regime.
Ms Petschler said Abacus supports the Uniform Consumer Credit Code (UCCC) being enacted as stand alone Federal legislation and for the creation of a ASIC licensing scheme for finance brokers and intermediaries.
“A simple, targeted licensing system would achieve the Government’s aim of nationally consistent consumer protection without burdening responsible, well regulated lenders with additional regulation.
“This approach would fit the Government’s call for best practice regulation under their Deregulation Agenda.
“We look forward to working with the State, Territory and Federal Governments to ensure the reform improves protections for consumers accessing credit products, particularly from lenders and intermediaries that are not currently adequately regulated.”
For more information, contact:
Louise Petschler
Chief Executive Officer
0408 239 226 or (02) 8299 9034
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Mark Degotardi
Head of Public Affairs
02 8299 9053 or 0419 998 201
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