Aussie credit providers face new regulations

New guidelines for Aussie credit providers have been revealed.

Aussie credit providers are set to face new regulations after the Australian Securities & Investments Commission (ASIC) revealed 11 guidelines to help organisations understand their obligations.

Responsible lending requirements have been issued to non-bank lenders, brokers and non-registered finance companies that offer personal and home loans, credit cards and leases among other services, an exclusive by the Australian revealed.

Under the new rules, credit providers must apply for a credit licence up until December 31st if they want to avoid a penalty.

In addition, the ASIC plans to implement "verification surveillances", according to chairman Tony D'Aloisio, which should ensure licence application information is accurate.

More than 14,700 credit businesses have registered with the organisation and over 400 licence applications have been received, the news provider noted.

This news comes after it was revealed that credit unions offer some of the cheapest rates for home loans, a piece in the Sydney Morning Herald noted in July.

By Mark Hornby