Commonwealth of Australia Explanatory Memoranda

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NATIONAL CONSUMER CREDIT PROTECTION AMENDMENT (HOME LOANS AND CREDIT CARDS) BILL 2011

                                      2010-2011



       THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA



                         HOUSE OF REPRESENTATIVES




    NATIONAL CONSUMER CREDIT PROTECTION AMENDMENT (HOME
               LOANS AND CREDIT CARDS) BILL 2011




             SUPPLEMENTARY EXPLANATORY MEMORANDUM



               Amendments to be moved on behalf of the Government

                         (Circulated by the authority of the
                        Treasurer, the Hon Wayne Swan MP)

These amendments seek to amend the National Consumer Credit Protection
Amendment (Home Loans and Credit Cards) Bill to:

·    change the commencement date of the obligation for lenders to make available a
     Home Loan Key Facts Sheet on their website or on a request by a potential
     consumer from 1 September 2011 to 1 January 2012 (item 1);

·    omit two strict liability offences, first, where a licensee does not have a website
     that allows a consumer to generate a Home Loan Key Facts Sheet, and second,
     where a licensee enters into a contract without an up-to-date Credit Card Key
     Facts Sheet having been provided to the borrower (items 2 and 8);

·    allow lenders to seek and obtain consents from consumers to receive credit limit
     increase invitations prior to commencement of Part 2 of Schedule 1 of the Bill on
     1 July 2012 so they can rely on those consents for the purpose of making an
     unsolicited credit limit offer after commencement (items 11 and 12); and

·    change the requirements in relation to approving transactions above a credit limit
     imposed by the default and supplementary buffers (items 3 to 7 and 9 to 10).