National lending laws 'will affect credit card firms'

Credit card firms will be among those affected by draft national lending laws announced earlier this week, according to the Sydney Morning Herald.

Under the proposed legislation - which could take effect later this year - credit card firms, mortgage brokers, banks or any other body selling credit would need to ensure the product is suitable for borrowers and assess their ability to pay it back.

Australian minister for corporate law Nick Sherry asserted that as some 2.3 million households across Australia have a credit card and 2.9 million have a home loan, the laws could affect families across the country.

While the legislation has been long supported by consumer groups, bankers have criticised the measures, asserting they may increase the costs associated with taking on a loan, the newspaper noted.

Citing figures from the Reserve Bank of Australia, the total amount owed on credit and charge cards in the country was some $42.69 billion during December 2008.