The government is proposing to axe safe lending laws during Australia's first recession in three decades. This will be disastrous for the economy and will hurt people. It will also tilt the balance of power firmly towards Australia's major banks and lenders.
In November 2020, CHOICE asked people to share personal experiences of unfair lending by Australia's banks. Over 800 people responded with stories of predatory lending by banks and explained why safe lending laws are important. We have included these stories throughout the submission so that people have the opportunity to share in their own words the human impact of irresponsible lending.
CHOICE does not support the government's proposal to axe safe lending laws. In this submission, CHOICE highlight five glaring defects with the proposal:
- Axing responsible lending laws will be harmful for our economic recovery
- People will lose individual legal rights
- Protections against credit card selling will be scrapped
- Penalties for banks will be scrapped entirely or significantly watered down
- Consumer protections for mortgage brokers will be weakened