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The federal government may rethink aspects of its national credit code after the new laws were slammed by Westpac and other institutions for being too heavy handed.
Under the proposed laws, all credit providers would be required to hold a license.
Furthermore, brokers and lenders who place their clients with unsuitable products could be slapped with a two year jail term and a fine for up to $1.1 million.
In a submission to a Senate inquiry, Westpac said the government’s approach was too tough and there needed to be further consultation with the industry.
“The development of the bill was characterised by a lack of transparency, limited genuine industry consultation and impractical deadlines,” Westpac’s head of government affairs Andrew Buttsworth told The Australian.
Mr Buttsworth also said there was a risk that under current regulations consumers could face higher fees and charges.
