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National Credit Providers Association

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17.01.2022 Today we lodged our submission on the Review of AFCA. Here is the link: https://smallloansbigneed.com.au//NCPA-Submission-to-the-A

14.01.2022 On behalf of the NCPA Board, Merry Christmas and may you have a safe and prosperous New Year in 2020. NCPA operations will close on Friday 20th December and re-open on Monday 6th January 2020. For any urgent matters please email [email protected]

09.01.2022 The Wile E. Coyote economy: Australia too has sped off the precipice. This article appeared in the Sydney Morning Herald yesterday and is worth sharing. For once some more balanced reporting on the state of the SACC sector during the covid-19 pandemic. https://www.smh.com.au//the-wile-e-coyote-economy-australi

07.01.2022 Happy New Year for 2021! Here's hoping it's a better year than 2020. Stay tuned for the NCPA submission to the Senate Economics Committee inquiry into the Morrison Government's proposed consumer credit reforms for the SACC sector. Submissions close by 3rd February.

06.01.2022 The Senate Economics Committee have now released their report into the old SACC Bill. As you are aware, NCPA Chairman Michael Rudd gave evidence at the public hearing conducted by the Committee back in March. The Report provides a number of recommendations, including that the Government continue to progress sensible reform and strengthen regulation in the area of SACCs and consumer leases, but not pass this Bill. As expected, there is a Dissenting Report from the Labor and Ce...ntre Alliance Senators with the recommendation that the government pass the Bill. So, no surprises here. Apart from that, the Report provides a summary of the regulatory process in the years since uniform national consumer credit laws were introduced to the federal Parliament in 2009. The Report also notes the Committee is aware of media reports which suggest some SACC providers are targeting people affected by bushfires and Covid-19’’. The report also notes that some Government payments may be used to repay SACCs and consumer leases. The Report then provides views on the Bill’s SACC and Consumer Lease provisions. So, where to from here and what was the point of this inquiry, I hear you ask? In answer to the first question, the Government may feel moved to introduce an amendment Bill to the Parliament when ready. The second question is easier to answer. I don’t know what the point of the inquiry was but I would offer a suggestion to those who wish to have an exact replica of an old, out-of-date draft Bill from 2017 enacted in legislation today. The SACC sector has changed considerably since the review in 2015, the basis for the proposed Bill. During the Covid-19 pandemic, actual data collected by the regulator ASIC shows a downturn in SACC businesses as a result of the pandemic. Anyone who was serious about reform or change for the SACC sector would have taken the time to get this information. Further, ASIC is already taking action against those small loans providers who provide financial products that don’t have the same consumer protections afforded to SACC providers under the National Consumer Credit Protection Act. I refer to the action ASIC is taking against Cigno and providers who are offering continuing credit contracts. The NCPA supports this action. But here’s the rub. As you know, these operators are not SACC providers and the Bill that Labor and Centre Alliance want the Government to introduce to the Parliament will not change the behaviour of those small loans providers. The Bill doesn’t capture Cigno as they provided a product using exemptions in the National Credit Code. Further, some other providers are supplying a product defined as a continuing credit contract, under s12BAA(7)(k) of the ASIC Act. This information has been provided to members of the Committee. But don’t despair and don’t give up SACC sector advocates need to keep singing from the same song sheet, just as the consumer activists are in order to get their message across.

03.01.2022 The NCPA submission to the Senate Economics Legislation Committee is almost completed. Will send out to members soon!