Govt adopts ACT’s changes to lending rules

Fri, 11 Mar, 2022

“ACT is welcoming the Government’s changes to over the top lending rules that had people choosing between Netflix and a mortgage,” says ACT Leader David Seymour.

I first wrote to the Minister raising concerns about the laws on 8 January and asking for changes. We also pushed the Finance and Expenditure Select Committee for an independent inquiry. David Clark announced his inquiry one week later.

“The effects of the law were crippling for those looking for a loan. In one reported case, a man who applied to have his credit limit increased by $500 was confronted with fifteen pages of forms, despite never having missed a payment in the seven years he’d had the card.

“The changes clarifying when a person is clearly not in hardship should mean that such a person can apply without such hinderance. By clarifying with banks what their liabilities are, there will no longer be great uncertainty leading banks to demand stringent checks.

“The Minister blames everyone but himself for this problem including other parties who voted for the CCCFA legislation. However, he’s not proposing to change the law Parliament passed, only the regulations that he as Minister is responsible for setting.

“The occasional flat white should never have been a reason to keep a first home buyer out of the market. ACT’s role is to hold the Government accountable when laws aren’t working and to propose positive solutions. We’re proud to have done both over this law, resulting in common sense changes that will make life easier for first home buyers.”