On 28 November 2016 the Government released its response to the Review of the Small Amount Credit Contract laws. The Draft Bill implements the Government’s response to the Review. This includes:
- imposing a cap on the total payments that can be made under a consumer lease;
- requiring small amount credit contracts (SACCs) to have equal repayments and equal payment intervals;
- removing the ability for SACC providers to charge monthly fees in respect of the residual term of a loan where a consumer fully repays the loan early;
- preventing lessors and credit assistance providers from undertaking door-to-door selling of leases at residential homes;
- introducing broad anti-avoidance protections to prevent SACC loan and consumer lease providers from circumventing the rules and protections contained in the Credit Act and the Code; and
- strengthening penalties to increase incentives for SACC providers and lessors to comply with the law.
No submissions are currently available.