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Australia: Banking & Finance Update – December 2006


Managing The Cost Of Consumer Credit In Queensland

The Queensland government has released a discussion paper to explore viable options for ensuring that fees and charges relating to the provision of consumer credit are fair and reasonable. Submissions are invited and close on 15 December 2006.

Under the Uniform Consumer Credit Laws Agreement, the governments of each state and territory established the UCCC. The agreement provides that a state or territory can individually fix maximum interest rates.

The current situation is:
NSW and the ACT - 48% pa maximum for interest and credit fees and charges
Victoria - 48% pa for unsecured loans and 30% pa for secured loans. The cap applies to interest only and there is no cap on fees….



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