Small amount loans and the Consumer Credit Legislation Amendment (Enhancements) Act 2012

Andrew Jeremy Serpell

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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.
Original languageEnglish
Pages (from-to)7 - 22
Number of pages16
JournalCompany and Securities Law Journal
Issue number1
Publication statusPublished - 2014

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