Consumers of small amount loans are extremely vulnerable, typically using the money borrowed to pay for essential items, such as food, rent or utility bills. These consumers apply for a loan because they have little, if any, savings and are typically on very low incomes. Schedules 3 and 4 of the Consumer Credit Legislation Amendment (Enhancements) Act 2012 (Cth) amends the National Consumer Credit Protection Act 2009 (Cth) to bolster consumer protection in this area by banning short-term credit contracts , providing for stricter regulation of small amount credit contracts , and introducing nationwide caps on the maximum amount which credit providers are permitted to charge consumers. This article critically analyses the changes brought about by Schedules 3 and 4 and makes various suggestions regarding future changes to the law which should be considered.
|Pages (from-to)||7 - 22|
|Number of pages||16|
|Journal||Company and Securities Law Journal|
|Publication status||Published - 2014|