Credit providers and their intermediaries remain confused about the implementation of their responsibilities under new credit laws, according to credit ratings house Veda Advantage.
A spokesperon from Veda Advantage, Chris Gration, has said mortgage brokers and lenders have been focused on registering with ASIC by the June 30 deadline yesterday, but remained confused about the ongoing rollout by the regulator of the national credit regime.
Gration told the Australian Financial Review one grey area was the requirement to make reasonable enquiries into a client's circumstances when arranging a loan, with many brokers and lenders worried what the legal interpretation of "reasonable" might be by the courts.
Credit providers and brokers need to apply for an Australian credit license before January next year, giving them increased responsibility in assessing the suitability of borrowers.