Review of National Credit Law Scheme. In consultation with all other parties, the Commonwealth will commence a review of the operation of the National Credit Law, no later than 2 years from commencement. Schedule National Consumer Credit Implementation Plan The following outlines the National Consumer Credit Implementation Plan which may be modified by the Council of Australian Governments from time to time. Phase One Key elements of phase one of the Action Plan include: Enacting the existing State legislation, the Uniform Consumer Credit Code (UCCC), into Commonwealth legislation.
Review of National Credit Law Scheme. In consultation with all other parties, the Commonwealth will commence a review of the operation of the National Credit Law, no later than 2 years from commencement. Schedule National Consumer Credit Implementation Plan The following outlines the National Consumer Credit Implementation Plan which may be modified by the Council of Australian Governments from time to time. Phase One Key elements of phase one of the Action Plan include: • Enacting the existing State legislation, the Uniform Consumer Credit Code (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 the Australian Securities and Investment Commission (ASIC) to be the sole regulator of the new national 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. • Regulation of trustee corporations. Phase One legislation in place by mid 2009. Phase Two Key elements of phase two of the Action Plan include: • Enhancements to specific conduct obligations to stem unfavourable lending practices, such as a review of credit card limit extension offers, an examination of State approaches to interest rate caps; 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. Phase Two legislation in place by mid 2010.
