Yahoo Finance Proposed laws could make it harder to get car or TV loan
The Australian Labor party has pledged to crack down on dodgy credit providers if it is elected at this year’s upcoming federal election.
Opposition leader Bill Shorten said today the Labor party wants to move immediately on the Royal Commission’s recommendations to remove exemptions from responsible lending standards for point of sale lenders, like car dealerships.
Presenting draft laws for five amendments he said could be passed by the end of the week, Shorten asked parliament, “If not now, when? If not, why not?”
The removal of point of sale lenders from the exemption would potentially make it harder to access a car loan at a dealership, or buy large items on credit.
“We’re ensuring that car dealers and other salespeople have to comply with consumer credit laws that apply to credit assistance providers like brokers,” Shorten said.
What else does Labor want?
Shorten also pushed to ban grandfathered commissions for financial planners and halt the exploitation of indigenous Australians through the sale of expensive and often sham funeral insurance.
Currently, companies like the Aboriginal Community Benefit Fund are allowed to sell funeral expenses products without having to comply with insurance regulations.
Shorten also wants to remove the claims handling exemption for insurance companies.
Labor noted that the handling and settlement of claims aren’t classed as a financial service, and as such aren’t regulated.
“The whole claims handling process is exempt from ASIC oversight and regulation. Removing this exemption will mean that insurance claims handling will be regulated,” Labor argued.
The Royal Commission said its recommendations should be addressed immediately, but the Coalition government plans to address them by 2021.
Shorten said that unless the incumbent government agrees to the laws now, it could be another six months before they are passed.
“There’s only three days of parliament, realistically, before August. That’s too long, the victims have waited too long,” he told reporters in Canberra today.
The draft laws come as the Labor and Coalition parties gear up for a federal election this year.
– With AAP.
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