Credit Unions & Building Societies Implement Consumer Protection LegislationPosted July 1st, 2009
The Australian Federal Government last week in parliament introduced legislation which will enforce financial lenders to abide by new laws and guidelines under a nation wide framework.
While the new regulations will begin in November 2009, all aspects of the legislation will not be implemented until January of 2011.
Credit unions and building societies members however are fortunate enough to already enough to have protection already in force under the the new Mutual Banking Code of Practice.
Abacus CEO Louise Petschler claimed that ‘While it’s good from a compliance point of view, it does mean that some borrowers might still be without protection from irresponsible lenders’.
‘Fortunately for members of credit unions and mutual building societies our new industry code of practice puts us on the front foot of making responsible lending committments from July 1st 2009′.
Louise Petschler discusses the stance credit unions and mutual building societies have taken:
Part 1: 0m:31s [audio:louise_petschler_1.mp3]
Part 2: 0m:25s [audio:louise_petschler_2.mp3]
Part 3: 0m:21s [audio:louise_petschler_3.mp3]
Part 4: 0m:16s [audio:louise_petschler_4.mp3]
The consumer credit laws will ensure that consumers understand their products in ‘plain english’ among other benefits highlighted in the Mutual Banking Code of Practice.. Till then, consumers of regular banks and financial lenders will still have to go over their terms and conditions with a fine tooth comb to ensure they understand the in’s and out’s of what they’re applying for.
Credit Card Offer Comparison
|Interest Rate (p.a.)||Balance Transfer Rate (p.a.)||Annual Fee||Cash Advance Rate (p.a.)|
Bankwest Breeze MasterCard
|A low interest rate on everyday purchases with a low balance transfer offer||0% for 4 months (reverts to 11.99% )||0% for 6 months||$59||21.99%|
Citibank Clear Platinum Card
|A low interest rate offer on balance transfers and purchases||0% for 6 months (reverts to 11.99% )||0% for 6 months||$49 annual fee for the first year ($99 thereafter)||21.74%|
|An introductory offer on balance transfer and a low annual fee||13.24%||2.99% for 6 months||$0 annual fee for the first year ($55 thereafter)||21.49%|
Virgin Australia Velocity Flyer Card
|Earn 1 velocity point per $1 spent, plus an introductory offer on balance transfers||20.99%||2.9% for 6 months||$129||20.99%|
Westpac 55 Day Credit Card
|No annul fee for the first year with a low rate on balance transfers and purchases||0% for 5 months (reverts to 19.59% )||0.99% for 9 months with 1% handling fee||$0 annual fee for the first year ($30 thereafter)||21.49%|