Home >  Blog >  South Australia's and Northern Territory's financial counsellors fight to stop Federal Government changes to responsible lending laws.

South Australia's and Northern Territory's financial counsellors fight to stop Federal Government changes to responsible lending laws.

Posted by SAFCA on 5 November 2020

Media Statement

South Australian and Northern Territory financial counsellors are slamming federal government moves to remove responsible lending laws.

The laws protect people from exploitative lending by banks and other lenders, but the Federal Government has just released a draft bill which will see them axed from March next year.

Financial counsellors from around South Australian and Northern Territory are writing letters to local MPs and Senators to urge them to vote against the proposed changes.

The South Australian Financial Counsellor's Association is also seeking meetings with key Federal MPs and Senators to explain why it is vital that these laws are retained.

"Axing protections in our lending laws will hurt individuals and their families," said Wendy Shirley, Executive Officer.

"This proposal will actually hamper the economic recovery. Loading people up with unaffordable debt is a recipe for economic disaster."

Financial counsellors work in community based organisations and provide free, independent and non-judgmental assistance to people in financial stress. They are different to financial planners or advisors.

"Financial counsellors are able to use the current laws to help people who have been given loans they cannot afford to pay. If the laws go, more people will end up in debt spirals and risk living in poverty as they struggle to pay off their debts," said Wendy Shirley.

"This is one of the biggest challenges our sector is facing, and we are determined to convince our federal politicians to stop these laws from being dropped."

The campaign is part of a wider national campaign against the proposal. The campaign is supported by all financial counselling state and territory associations along with key consumer groups including Choice, Consumer Action Law Centre and the Financial Legal Rights Centre.

For an interview or more information contact Wendy Shirley wendy@safca.org.au 0427 823 656 ENDS

Author: SAFCA
Tags: Responsible Lending

SAFCA

Suite 7 Wellington Centre, 2 Portrush Rd.
Payneham SA 5070