Consumer groups in Canberra to fight for safe lending laws
As the Senate Economics Committee hosts hearings in Canberra today, over 22,000 Australians have joined the callfor Federal Senators to strengthen instead of repeal safe lending laws, with many sharing personal stories of unsafe lending harm.
Figures released during the Banking Royal Commission showed that between 2010 and 2018 alone, over 590,000 people received compensation totalling over $350m.* If safe lending laws are scrapped, hundreds of thousands of Australians will lose access to justice.
Since the Federal Government announced plans to repeal safe lending laws, over 125 consumer and community groups have called on the Senate Economics Committee to protect the law.
Jo from NSW told consumer advocates:
"These laws are very important to me as when I was just 18 years old a bank encouraged me to apply for a credit card. I had no employment and every couple of months the bank would call and offer me another $1000 on my limit. I ended up owing $5000 that I did not have a hope of repaying."
Consumer advocates have also pointed to the hypocrisy of the banks for changing their public statements about the role of safe lending laws. Under the shadow of the Royal Commission, banks said they supported laws to protect consumers. They've also told parliamentary committees that the current laws are no impediment to the flow of credit. Now, under cover of COVID, they are asking Parliament to repeal these laws.
CBA response to Banking Royal Commission recommendations
The Senate crossbench will play a pivotal role in deciding whether Australians can continue to access justice through safe lending laws.
