2010-2011

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

SUPPLEMENTARY EXPLANATORY MEMORANDUM

Amendments to be moved on behalf of the Government

(Circulated by the authority of the

Treasurer, the Hon Wayne Swan MP)

These amendments seek to amend the National Consumer Credit Protection Amendment (Home Loans and Credit Cards) Bill to:

•                change the commencement date of the obligation for lenders to make available a Home Loan Key Facts Sheet on their website or on a request by a potential consumer from 1 September 2011 to 1 January 2012 (item 1); 

•                omit two strict liability offences, first, where a licensee does not have a website that allows a consumer to generate a Home Loan Key Facts Sheet, and second, where a licensee enters into a contract without an up-to-date Credit Card Key Facts Sheet having been provided to the borrower (items 2 and 8);

•                allow lenders to seek and obtain consents from consumers to receive credit limit increase invitations prior to commencement of Part 2 of Schedule 1 of the Bill on 1 July 2012 so they can rely on those consents for the purpose of making an unsolicited credit limit offer after commencement (items 11 and 12); and

•                change the requirements in relation to approving transactions above a credit limit imposed by the default and supplementary buffers (items 3 to 7 and 9 to 10).