Pauline Hanson rejects plan to end responsible lending laws
“The government is almost giving the big banks carte blanche and allowing them to self-regulate using the weak and selfish bank code of conduct that does not offer strong consumer protection or responsible lending provisions,” the senator said. Hanson. The Australian Financial Review.
“The government intends to take Australia back to the horror era when the banks called almost all the shots and acted like they were untouchable.”
Mr Frydenberg announced in September that responsible lending laws introduced by Labor in the wake of the global financial crisis would be scrapped for banks, to encourage the flow of loans and boost economic recovery from the recession in the COVID-19.
The deregulation attempt responds to the concerns of the Big Four and Reserve Bank of Australia Governor Philip Lowe, who, following Kenneth Hayne’s Royal Commission of Inquiry and ASIC’s pursuit of Westpac in the “shiraz and wagyu” loans affair, the banks became too conservative and tightened the flow. credit.
As part of this plan, banks and some non-bank lenders will be monitored under less prescriptive prudential lending standards currently overseen by the Australian Prudential Regulation Authority.
The oversight of payday lenders for vulnerable borrowers by the Australian Securities and Investments Commission will be strengthened.
A Senate vote has been postponed until June over concerns over fragile support. The government and bankers have argued that the change will result in some relaxation of some compliance requirements for borrowers.
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But Senator Hanson said the plan would nullify essential consumer protections, suggesting instead a change in ASIC regulations on credit licensing.
“This government says ‘don’t worry you can trust the big banks’; but I am saying that millions of Australians should not be exposed to predatory banking practices.
“Heavy penalties for violations of responsible bank lending laws are being removed by the government and will no longer apply to the majority of loans, especially by banks.
“Borrowers will lose their ability to sue lenders for violations of loan laws and ASIC’s ability to make decisions and provide compensation will be drastically reduced.”
One Nation’s aversion to the Big Four banks is regularly exposed in the Federal Parliament: Senator Hanson’s strong support for ousted Australia Post boss Christine Holgate was in part due to a community banking deal she got for franchisees post offices.
“The Prime Minister and his treasurer chose to ignore that these are the same banks that had to be kicked and shouted to appear before the Hayne Royal Commission,” said Senator Hanson.
Labor spokesman for financial services Stephen Jones said he hoped the government would abandon its plan.
“The legislation is orphan. Parliament needs to deal with much higher priorities, ”he said.
“This would be the worst possible time to go back on the very first recommendation of the royal commission.”