How Effective Are Legal and Non-Legal Responses to the Issues of Credit and Product Certification?

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In present day Australia, credit is more easily available than ever before, and thus the need for consumer protection when it comes to dealings with credit providers is greater than ever. This is why a range of legal and non-legal responses have been developed to this end. In 2008, a meeting of the Council of Australian Governments decided upon a unification of consumer credit regulation into one uniform federal law which came about via the Trade Practices Amendment (Australian Consumer Law) Act 2009 (Cth), which included amendments to the Australian Securities and Investment Commission Act 2001 (Cth). This strengthened the national Uniform Consumer Credit Code (UCCC), which seeks to provide laws that apply equally to all forms of consumer lending across all jurisdictions in Australia. The amendments resulted in a more uniform code that increased the rigorousness of the licensing system, holds lenders to a code of responsible lending, and requires lenders to clearly disclose all relevant information about their credit agreements. This legal response has been very effective, with the licensing scheme excluding unscrupulous credit providers from the market, and the disclosure requirements making credit agreements transparent to all parties, improving both lender and consumer confidence. Finally, the criminal and civil penalties for licensee misconduct, as well as remedies such as compensation, empower the law to carry out its objectives, leading to a safer and more secure credit market. There are also multiple non-legal responses to consumer protection in the credit market. The NSW Office of Fair Trading provides free advice regarding the UCCC, and the Consumer Credit Legal Centre NSW also provides free phone and financial counselling advice, particularly to lower income consumers. Consumers caught up in a dispute with a credit provider can seek recourse at Community
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