Submission on the Credit Contracts Legislation Amendment Bill

We support the intent of the Bill and the need to protect vulnerable consumers from irresponsible lending practices and problem debt. However, we are very concerned about the adverse impact that the Bill will have on responsible lenders and directors, and potential unintended consequences for vulnerable consumers.

As currently drafted, the Bill places a disproportionate burden on responsible lenders, excessive penalties and damages, and an unreasonable prohibition on indemnities and insurance.

The potential adverse effects of amendments in the Bill include increased compliance costs and insurance premiums, boards becoming more risk averse, and the possibility of deterring directors from serving on boards of lenders.