National consumer credit regulation

National Consumer Credit Protection Package
Subscribe to receive updates
Career opportunities
Contact ASIC

In 2008, the Council of Australian Governments agreed that the Commonwealth Government should take over responsibility for the regulation of consumer credit. ASIC will become the national regulator for consumer credit and finance broking, taking over from the states and territories. This means that home loans, personal loans, credit cards, consumer leases, overdrafts and line of credit accounts, among other products and services, will be regulated under Commonwealth legislation and administered by ASIC.

ASIC will continue to make information about the new regulatory framework including the legislation, licensing process, general obligations and the timeframe in which the changes will take effect, available on this website at www.asic.gov.au/credit.

National Consumer Credit Protection Package

On Thursday, 25 June 2009, the Hon Chris Bowen MP, Minister for Financial Services, Superannuation and Corporate Law, introduced the National Consumer Credit Protection Bill into Parliament. This followed the release of an exposure draft of the Bill, which provided members of the public with an opportunity to make a submission on the draft Bill.

Minister Bowen announced a number of enhancements to the National Consumer Credit Protection legislation on 17 September 2009. The key change was the commencement of the Consumer Credit Reforms on 1 July 2010. This followed a recommendation by the Senate Economics Committee to give the credit industry more time to make the necessary changes to move to the new regime.

Anyone who engages in certain credit activities will need to register with ASIC between 1 April and 30 June 2010 (inclusive).
Registered credit participants will then have six months to apply for an Australian credit licence, between 1 July 2010 and 31 December 2010.
New entrants to the credit market will have to apply for an ACL from 1 July 2010.

On Monday, 26 October 2009 the Senate passed the National Consumer Credit Protection Bill.

Further details, including a copy of the National Consumer Credit Protection Act, can be found on the Treasury website at www.treasury.gov.au/consumercredit.

Implementation

The program to bring the regulation of consumer credit under the Commonwealth – the National Consumer Credit Action Plan – will be introduced in two phases. The Commonwealth Government will assume responsibility for the Uniform Consumer Credit Code (UCCC) by enacting it as Commonwealth law. The second phase will consider a review of unsolicited credit card limit extension offers, the possible regulation of reverse mortgages and further measures, where necessary, to address unfavourable lending practices.

ASIC and The Treasury, industry representatives and other key stakeholders are working together to implement the changes.

Key elements of Phase One

Enacting the existing state legislation, the UCCC, into Commonwealth legislation.
Establishing a national licensing regime to require providers of consumer credit and credit-related brokering services and advice to obtain a licence from ASIC.
Extending the powers of ASIC to be the national regulator of the new credit framework with enhanced enforcement powers.
Requiring licensees to observe a number of general conduct requirements including responsible lending practices.
Requiring mandatory membership of an external dispute resolution (EDR) body by all providers of consumer credit and credit-related brokering services and advice.
Extending the scope of credit products covered by the UCCC to regulate the provision of consumer mortgages over residential investment properties.
Extending the operation of the Corporations Act to regulate margin lending.

Key elements of Phase Two

Enhancements to specific conduct obligations to stem unfavourable lending practices, such as a review of credit card limit extension offers; and other fringe lending issues as they arise.
Regulation of the provision of credit for small businesses.
Regulation of investment loans other than margin loans and mortgages for residential investment properties.
Reform of mandatory comparison rates and default notices.
Enhancements to the regulation and tailored disclosure of reverse mortgages.
Examination of remaining existing state and territory reform projects.

More about the timeline for credit licensing

ASIC guidance documents on credit

Subscribe to receive ASIC Credit Reform Updates

To receive information from ASIC about the National Consumer Credit Protection reforms subscribe to the ASIC Credit Reform Update.

Subscribers will be provided further information about the registration and licensing requirements and process.

General information about the reform process will also be provided via this service.

Subscribe to the ASIC Credit Reform Update.

More information

ASIC will continue to provide information in relation to the implementation of the national regulation of consumer credit via this website and other communication channels.

Useful website links and other resources

Background to ASIC's credit jurisdiction

Debt collection

Visit our Financial services homepage

Career opportunities

The transfer of credit regulation from the states and territories to ASIC presents a number of new career opportunities. The Careers page on the ASIC website will publish these new career opportunities: www.careers.asic.gov.au

Contact ASIC

phone: 1300 300 630
email: infoline@asic.gov.au
website: www.asic.gov.au/credit

ASIC Website: Printed 02/10/2010

Number:	-- OR --
Name: