Fed: New credit laws will push up cost of lending: banks

AAP General News (Australia)
04-27-2009
Fed: New credit laws will push up cost of lending: banks

The Australian Bankers' Association's warned consumers will end up paying more for
a loan and wait longer for approval under heavy-handed new consumer credit laws.

ABA director IAN GILBERT says the new rules requiring lenders and brokers to be licensed
from November will mean more paperwork and assessment of loan applications and it could
push up the cost of lending.

But Mr GILBERT says the new rules will go a long way to eliminating predatory and unscrupulous
lending practices.

Credit unions and building societies are also critical of the new laws .. saying responsible
lenders will be penalised and buried in meaningless red tape.

AAP RTV keh/kms/crh

KEYWORD: CREDIT ABA (CANBERRA)

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