RLC in the Media: ABA calls for best interests duty clarification

The banking association is calling on government to provide greater clarity on the application of the best interests duty expansion.

Annie Kane reports for The Advisor.

While the Treasury has not yet publicly released the consultation responses to its proposed consumer credit reforms that seek to remove responsible lending obligations (RLOs) and expand the best interests duty (BID) to all credit assistance providers, several bodies have already begun publishing theirs. Consumer groups have released their response, coming out strongly against nearly all the consumer credit reforms proposals, including the broker-related changes.

A joint response from the Consumer Action Law Centre, Financial Rights Legal Centre, Financial Counselling Australia, Consumer Credit Law Services from WA, SA and ACT Inc, CHOICE, Care and Consumer Law Centre ACT, NILS Network of Tasmania, Indigenous Consumer Assistance Network, and Redfern Legal Centre has now been released.

Its main recommendation is to “abandon this legislation and retain responsible lending laws in their current form”.

Read the full story here(26 November 2020)