Responsible lending rules approach for Aussie credit providers

Ahead of new Aussie credit regulations, providers are reminded not to send unsolicited cards to customers.

Aussie credit providers could soon find themselves committing to responsible lending rules as the introduction of the second phase of the national consumer credit regime comes into effect.

The regime's start date is now set for early 2011, reports the Sydney Morning Herald, although Aussie credit companies are already being reminded of their need to treat customers fairly.

Readers are told that the Australian Securities and Investments Commission (ASIC) has already issued guidance about unsolicited debit and credit cards.

This aims to resolve discrepancies in whether cards can be sent directly to consumers without a written request.

Doubt arises in this area due to the fact that, if the product is termed a "replacement", it can be sent unsolicited.

If it is a "new" card, however, a request must be received first - a condition that has led some providers to question the definitions of each term.

ASIC is also looking to keep interested parties informed about the progress of the consumer credit protection reforms with the option to subscribe to an electronic newsletter via the body's website.