RLO repeal would reduce ‘policy creep’: CAFBA
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As politicians debate the bill to repeal responsible lending, CAFBA has said that repealing the obligations would help reduce any “grey area” when it comes to commercial lending.
On Monday (15 March), the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 – which focuses on amending the credit laws so that they remove responsible lending obligations (RLOs) and extend the best interests duty to more credit assistance providers, among other changes – was debated in Parliament during its second and third reading.
During the debates, which extended into the evening, several Labor MPs suggested that the changes the bill is proposing would negatively impact business lending.
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MPs highlight broker concerns in Parliament debate
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The Member for Fisher says brokers back the bill repealing responsible lending laws, while the Opposition Whip told the house mortgage brokers oppose it.
Speaking in the House of Representatives during the debate for the second reading of the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 yesterday (25 February), politicians continue to voice the pros and cons of the ramifications of the proposed changes.
Among those speaking in the house was Liberal MP for Fisher, Andrew Wallace, who outlined that the repeal of responsible lending laws was needed to free up credit and “replace the increasingly complex guidance provided by regulators and to get the flow of credit moving again”.
Submissions on RLO and BID extension released
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More than 100 submissions into the bill repealing responsible lending laws – which includes extending the best interests duty to more brokers – have been released as Senate begins hearings into the issue.
On Friday (19 February), the Senate economics legislation committee began its hearings for its inquiry into the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020, which seeks to repeal responsible lending obligations (RLOs) and expand the best interests duty (BID) to more credit assistance providers (among other changes).
The inquiry and its hearings are largely centered on the impacts of removing RLOs, and more than 100 submissions from the lending and mortgage industry – as well as other stakeholders – were released in relation to the proposed laws.