Submission to the Senate Inquiry into the National Consumer Credit Protection Amendment Bill 2020

Good Shepherd strongly opposes the Bill and urges the Government to reconsider passing the Bill. The Bill weakens responsible lending obligations and is contrary to the findings and recommendations of the 2019 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry; it also introduces inadequate protections in small amount credit contracts which have been subject to previous inquiries, documenting that the under-regulation of small amount credit leaves vulnerable and low-income Australians with no capacity to pay back loans increasing financial hardship and distress.