Key points
- The Federal Government's proposal aims to make it easier for consumers and businesses to access credit.
- The proposal will shift the onus of assessing a borrower's suitability for a loan from the creditor to the borrower.
- Creditors will no longer face civil and criminal penalties for irresponsible lending.
In the wake of the COVID-19 pandemic, the Federal Government has introduced a bill to reform the responsible lending laws, to make it easier for consumers and businesses to access credit.
The proposal aims to make the loan application process for borrowers simpler, and the lenders’ responsibility to assess and verify a borrower’s ability to repay a loan will be reduced.