Debate resumed on the motion by Ms Vamvakinou:

That this House:

(1) acknowledges the Federal Government's National Consumer Credit Action Plan, particularly phase one of the plan which came into effect on 1 January 2011 and provides for licensing of all credit providers, new responsible lending requirements and access to external dispute resolution for all consumers of consumer credit;

(2) notes that phase two of the National Consumer Credit Action Plan will be considered by the Government in 2011, which will include consideration of new rules to apply to small amount short term loans (often known as payday loans);

(3) calls on all Members of this House to consider and consult with relevant community organisations on the impact of small amount short term loans on vulnerable constituents, particularly the impact of very expensive interest, fees and charges which can be detrimental to household budgets and reduce the ability for people to manage their day-to-day finances; and

(4) calls on the Minister for Financial Services and Superannuation to improve the operation of the consumer credit market in Australia by ensuring that small amount short term loans are not damaging to families and households, by replacing the myriad of existing state-based interest rate limits with a single, national limit on the fees and interest that can be charged by short term lenders.

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