Government regulations on credit cards 'a step in right direction'

Tuesday 20 October 2009

Article by Mozo

The government’s legislation on responsible lending is a step in the right direction for people looking for cheap credit cards and other forms of credit.

Veda Advantage general manager of market and product development Russell Evans made the comment in response to a new study from the firm.

The Australian Debt Study Report showed that 16 per cent of people are struggling to repay their debts.

Furthermore, 21 per cent of people hoping to apply for credit or home loans in the next six months say they are having difficulty paying bills.

In fact, 13 per cent of home loans customers have been late paying a household bill in the last three months.

Mr Evans said these figures are concerning and said those currently struggling should be careful when it comes to taking on more credit.

"The government’s responsible lending legislation, which should pass by the end of the year, is a first step in the right direction to help these Australians," he commented.

However, he said more should be done to help people in financial difficulty.

An article in the Daily Herald recently noted that proposed changes to the Privacy Act may mean that lenders can view people’s savings accounts in order to assess their suitability for loans.

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