Financial Rights Legal Centre
It comes as the Government has introduced a bill to repeal the very same safe lending protections it used to justify exposing financial hardship information in the first place.
Seeking a repayment arrangement from your lender because of a temporary set-back has until now been a matter between banks and their customers.
Financial Rights Legal Centre Chief Executive Officer Karen Cox said the passing of this bill means that financial hardship information will be retained on a person’s credit report for twelve months or more, even if an individual is only in hardship for a very short time.
The Treasurer has told The Adviser that government will delay finalising the proposed extension of the best interests duty until after Senate’s inquiry reports back in mid-March.
Mortgage Business RLOs should be ‘tweaked, not removed’: Pepper CEO By Tony Zhang 29 December 2020
The move to scrap responsible lending will undo all the progress made by the industry and would be a drastic step, according to Pepper CEO Mario Rehayem.
The proposal to remove responsible lending obligations (RLOs) is set to play out in 2021.
Earlier this month, the bill relating to the RLO removal (as well as the introduction of new rules onto non-banks and the proposed extension of the best interests duty to more credit assistance providers) – the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 – was introduced into Parliament.
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