The exemption of retail dealers from the operation of the NCCP Act should be abolished.
The Government agrees to remove the point‑of‑sale exemption. The Government recognises that this change may impact on many businesses and will carefully consider how these reforms are implemented to ensure balance is achieved between consumer protection and access to products and services.
The Royal Commission identified that the provision of inappropriate loans and other financial products has led to consumers experiencing financial hardship. Removing the point‑of‑sale exemption will require third party vendors, as well as lenders, to only recommend loans that are not unsuitable for the borrower.
This also responds to the recommendation of the Productivity Commission’s report Competition in the Australian Financial System to review the current exemption of retailers from the NCCP Act.