The mainstream media doesn't seem to be having a very close look at the new national credit laws and there's a great deal about them that needs to be scrutinised.
The key concern of most consumer advocates is that they will fall short of providing borrowers with adequate protection.
They are based on disclosure and the idea that a lender cannot provide a loan to a borrower unless they are certain that loan contract is "not unsuitable".
NOT UNSUITABLE. How Yes Minister does that sound? This new "responsible lending" regime is supposed to ensure that consumers won't enter into loans they can't afford to repay.
Their main idadequacy is, as usual, that the consumer is supposed to read and understand the fine print.
Of course, lenders and brokers now have to be licensed and must comply with the legal conditions of their license.
The bottom line is that no borrower should be of the opinion that the system will now be foolproof. The onus is on you, no matter how hungry or desperate you are to get that loan, to check your lender really has made sure it's not unsuitable, that you really can afford it without hardship.
My next post will talk about how you can go about borrowing money SAFELY, without risking hardship.
No comments:
Post a Comment