> download Submission to the Draft Responsible Lending Code (RLC) (PDF, 436KB)
The Salvation Army submits that the Code strikes a fairly even balance between the needs of both lenders and consumers. In particular, we support the guidance that lenders should make more enquiries where consequences of default are higher or when they are assessing substantial hardship.
We submit that more guidance for lenders is important, especially to ensure that the true object of the Credit Contracts and Consumer Finance Amendment Act 2014 (CCFA 2014) is fulfilled.
Responsible lenders who have a strong responsible business model will likely benefit from this Code as it guides their own business practices, while also encouraging better informed consumers to cautiously enter into credit agreements