FED: New legislation to stop predatory lending practices
12 Apr 2009 3:58 AM
Subject: FED: New legislation to stop predatory lending practices FED: New legislation to stop predatory lending practices
Federal Cabinet has signed off on two new pieces of legislation to stop predatory lending practices by banks .. card providers and finance brokers.
Under the proposed laws .. credit card providers that push unwanted cards and increased limits onto customers who can't afford them will lose their lending licences.
All credit providers will have to be licensed under the new laws and borrowers will be able to take the lender or bank to an independent disputes resolution body.
Loan sharks who charge punitive interest rates .. will also be targeted under the laws.
The Australian Securities and Investments Commission will oversee the new laws.
The package will be introduced to Parliament by September and will cover bank and non-bank home loans.
AAP RTV ao/ka
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FED: New legislation to stop predatory lending practices