1 00:00:00,120 --> 00:00:02,480 Speaker 1: Homelans, another lending should become a little bit easier. As 2 00:00:02,520 --> 00:00:04,960 Speaker 1: of today, we've got changes to the Fame Triple CFA, 3 00:00:05,080 --> 00:00:08,160 Speaker 1: that cock up from David Clark, the Credit Contracts and 4 00:00:08,200 --> 00:00:11,479 Speaker 1: Consumer Finance Act, Commerce and Consumer Affairs Minister these days. 5 00:00:11,520 --> 00:00:13,520 Speaker 1: Andrew Baileys with it's Andrew, very good morning to you. 6 00:00:14,320 --> 00:00:15,240 Speaker 2: Hey, good morning, Mike. 7 00:00:15,480 --> 00:00:17,279 Speaker 1: It's not like this hasn't been messed with over and 8 00:00:17,320 --> 00:00:19,160 Speaker 1: over and over again. Have we messed with it one 9 00:00:19,239 --> 00:00:19,920 Speaker 1: last time? 10 00:00:21,200 --> 00:00:22,280 Speaker 2: Well? Yes, I think so. 11 00:00:22,600 --> 00:00:26,520 Speaker 3: We're removing eleven pages of overly prescriptive stuff out of 12 00:00:26,600 --> 00:00:30,280 Speaker 3: the requirements, and that's going to make it easier for 13 00:00:30,320 --> 00:00:31,840 Speaker 3: people to be able to get finances. 14 00:00:32,000 --> 00:00:33,879 Speaker 2: That's the bottom line of what we want to try 15 00:00:33,920 --> 00:00:34,400 Speaker 2: and achieve. 16 00:00:34,680 --> 00:00:37,159 Speaker 1: Are you still protecting those who were supposed to be 17 00:00:37,200 --> 00:00:38,920 Speaker 1: protected in theory in the first place. 18 00:00:39,840 --> 00:00:41,880 Speaker 2: Oh yeah, that's always been the case. 19 00:00:42,080 --> 00:00:45,159 Speaker 3: I've always been concerned about making sure that people are 20 00:00:45,200 --> 00:00:48,680 Speaker 3: not getting ripped off, and so you know, there's still 21 00:00:48,720 --> 00:00:52,200 Speaker 3: this strong underlying requirement that people have to do proper 22 00:00:52,280 --> 00:00:55,880 Speaker 3: affordability tests if they think it's necessary. They can't get 23 00:00:55,920 --> 00:00:58,320 Speaker 3: away without. There's high penalties. And I've also looked to 24 00:00:58,360 --> 00:01:03,680 Speaker 3: strengthen up the dispute mechanism. I've standardized or sput mechanisms 25 00:01:03,680 --> 00:01:05,920 Speaker 3: can now ward damages up to five hundred thousand. 26 00:01:05,959 --> 00:01:07,840 Speaker 2: So we're and I'm looking to do a little bit 27 00:01:07,880 --> 00:01:08,480 Speaker 2: more around that. 28 00:01:08,520 --> 00:01:11,600 Speaker 3: But it is a balancing act between making sure people 29 00:01:11,680 --> 00:01:15,280 Speaker 3: can get access to credit easily and also making sure 30 00:01:15,319 --> 00:01:18,080 Speaker 3: that people are not getting subject to bad practices. 31 00:01:18,200 --> 00:01:20,040 Speaker 1: Are the banks on board because the bank screened and 32 00:01:20,080 --> 00:01:22,280 Speaker 1: said this isn't going to work, clack didn't listen. Are 33 00:01:22,280 --> 00:01:23,160 Speaker 1: they on board now? 34 00:01:24,040 --> 00:01:24,840 Speaker 2: Oh? Very much so. 35 00:01:25,000 --> 00:01:27,520 Speaker 3: And also during the process, I've involved a lot of 36 00:01:27,560 --> 00:01:30,400 Speaker 3: the consumer advocacy and budgeting people. 37 00:01:30,400 --> 00:01:31,319 Speaker 2: I've actually had them. 38 00:01:31,600 --> 00:01:36,039 Speaker 3: They've been party to developing the Responsible Learning cobutch. We've updated, 39 00:01:36,160 --> 00:01:38,480 Speaker 3: so you know, I've always tried. I've tried to balance 40 00:01:38,520 --> 00:01:44,759 Speaker 3: it across across post areas. So people want finance people 41 00:01:44,880 --> 00:01:46,640 Speaker 3: or lending people want this. 42 00:01:47,080 --> 00:01:47,880 Speaker 2: I'll give you an example. 43 00:01:47,960 --> 00:01:50,280 Speaker 3: I went to tear moved to a great protuential town, 44 00:01:50,320 --> 00:01:51,840 Speaker 3: and I spoke to a land of there and I said, 45 00:01:51,960 --> 00:01:53,760 Speaker 3: how long does it take you the process. 46 00:01:53,360 --> 00:01:55,440 Speaker 2: Of five hundred dollars alone? And they said, what is 47 00:01:55,480 --> 00:01:56,720 Speaker 2: to take one to two hours? 48 00:01:56,920 --> 00:01:59,520 Speaker 3: Now it takes eight to ten hours, And the last 49 00:01:59,520 --> 00:02:01,240 Speaker 3: time I spa some a couple of months ago, they 50 00:02:01,240 --> 00:02:03,800 Speaker 3: had put their minimum amount that you could borrow three 51 00:02:03,840 --> 00:02:07,600 Speaker 3: thousand bucks. So you mentioned a few you can't breaks 52 00:02:07,640 --> 00:02:09,440 Speaker 3: down overnight and you've got to get the kids to 53 00:02:09,480 --> 00:02:11,880 Speaker 3: school tomorrow and you need six hundred bucks. What the 54 00:02:11,919 --> 00:02:13,800 Speaker 3: hell you did? You go you you couldn't go to 55 00:02:13,840 --> 00:02:15,440 Speaker 3: and you wanted to get that small amount of money. 56 00:02:15,440 --> 00:02:18,560 Speaker 3: And we're not talking about people like you don't need it. 57 00:02:18,600 --> 00:02:21,720 Speaker 3: We're not talking about people who've got more overdrift facilities 58 00:02:21,720 --> 00:02:25,040 Speaker 3: sitting around they can just call on. These are vulnerable newsalanders. 59 00:02:25,160 --> 00:02:27,560 Speaker 3: So that was the worst thing. That was a pernicious 60 00:02:27,680 --> 00:02:30,720 Speaker 3: thing that these rules did. They actually made it hard 61 00:02:30,760 --> 00:02:33,440 Speaker 3: for the most vulnerable key people at a time when 62 00:02:33,440 --> 00:02:34,520 Speaker 3: they really needed finance. 63 00:02:34,639 --> 00:02:37,079 Speaker 1: Exactly. Glad you fixed it. Hopely it works. Andrew, appreciate 64 00:02:37,080 --> 00:02:39,760 Speaker 1: your time. Andrew Badley, the Commerce and Consume Affairs Minister, 65 00:02:39,800 --> 00:02:40,560 Speaker 1: with us this morning. 66 00:02:41,000 --> 00:02:43,920 Speaker 3: For more from the Mic Asking Breakfast, listen live to 67 00:02:44,040 --> 00:02:47,120 Speaker 3: news talks they'd be from six am weekdays, or follow 68 00:02:47,160 --> 00:02:48,720 Speaker 3: the podcast on iHeartRadio.