Banking & Finance Update - December 2006.
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Managing the cost of consumer credit in Queensland Report on unfair terms in consumer contracts - New South Wales 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. SA - recently introduced legislation (not yet in force) that mirrors NSW. In 2000, the Queensland Minister for Fair Trading established the Pay‑Day Lending Working Party to consider pay‑day lending. The PDL Working Party considered that an interest rate cap of 48% pa did not take into account the time, effort, and expense associated with the provision of pay‑day lending. An interest rate cap without a fee cap is of little impact because the lender can exceed the cap through fees. Victoria’s recent… |