CONSUMER LEASE SECTOR URGES PARLIAMENTARY SUPPORT FOR THE NATIONAL CONSUMER CREDIT PPROTECTION AMENDMENT (SUPPORTING ECONOMIC RECOVERY) BILL 2020

December 10, 2020

CONSUMER LEASE SECTOR URGES PARLIAMENTARY SUPPORT FOR THE NATIONAL CONSUMER CREDIT PPROTECTION AMENDMENT (SUPPORTING ECONOMIC RECOVERY) BILL 2020

We appreciate the ongoing feedback and dialogue with all members of parliament on this important area of credit reform and we congratulate the Treasurer and Assistant Treasurer and Federal Government for introducing it.

The Parliament needs to swiftly consider this legislation and at the appropriate time, pass the bill in its current form. It includes additional consumer protections for those Australians seeking consumer leases.

The sooner the Federal Government’s reforms pass the parliament, the sooner the entire sector can be brought up to the high standards that CHERPA and CHERPA’s members have exhibited for a long time now. That’s good for Australian business and more importantly, it’s good for Australian consumers.

CHERPA is the national peak body that represents the overwhelming majority of consumer lease providers.

The effect of the Federal Government’s consumer credit reforms for the consumer lease sector, will be to bring all consumer lease providers up to the high standards being maintained by CHERPA through its code of conduct that has been in place for several years now.

CHERPA’S members through its code of conduct and strong engagement with the credit regulator, ASIC, maintain the highest standards. These high standards are demonstrated through a miniscule complaint rate with the Australian Financial Complaints Authority (AFCA).

The legislative changes are additional and important consumer protections supported by CHERPA and its membership. They have been well consulted on by the Federal Government and Treasury over a significant period of time now. CHERPA now looks forward to consulting with Treasury and ASIC on the regulations.

CHERPA’s members are increasingly national in their business scope and so the national government and parliament is the place for consumer lease providers to be regulated.

We are now calling on the Federal Parliament to pass with the highest priority and at the earliest possible opportunity, these vital consumer credits reforms and protections. Needlessly holding them up means less certainty for hard working Australian businesses and less protections for Australians who want consumer leases.

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