Government issues proposals for consumer credit reform

The federal government has issued a Green Paper aimed at reforming the regulation of various consumer credit products like credit cards.

Chris Bowen, the financial services minister, said in a statement that the Green Paper builds on the agenda already set out in the new National Consumer Credit Code that commenced on July 1st.

Under the code, the government has brought together the different state and territory legislation on financial services into a single, standard, national consumer credit law.

The new Green Paper aims to provide a focus for such reforms and has been developed following consultation with interested industry and consumer groups, Mr Bowen confirmed.

’"This Green Paper outlines the options for enhancing the new national consumer credit law in particular areas such as credit cards, small business credit, reverse mortgages, and fringe or payday lending," he added.

Such reforms will impact on the rights of consumers who may wish to compare credit cards or other financial products. The proposals will be available for public comment for a further four-week consultation period up until August 6th, the government said.

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