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Ben Kingsley Blog post by Ben Kingsley

Lending Laws Now Consistent Across the Board

The start of the 2011-12 financial year saw the new National Consumer Credit Protection (NCCP) laws take effect for banks and other lending institutions along with brokers.  The laws for brokers came into effect 1st January 2011.  This now provides consumers with greater protection from unscrupulous lending practices that may have occurred in the past.  Anyone who now gives advice on loans must either be a licensee or be an authorised representative operating under a license.

What consumers must now prepare themselves for is a lot more paper work during the application stage and a lot more scrutiny and investigation around their ability to afford the loan they are seeking.  It’s certainly made the whole process for the average person a lot more complicated and this further highlight why so many people now prefer to work with a broker, as they have more time to spend with a client compared to a busy bank or credit union staff member working in a busy branch or call centre.   And a broker who specialises in investment lending will put more focus into the appropriate loan structuring, taking today’s and tomorrow’s assets into account.

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