BMCLC works to improve the lives of the most disadvantaged and marginalised members of the community in the West. We do this by advocating for those who experience various legal needs, including matters such as economic hardship, debt and family violence and abuse.

BMCLC’s Principal Lawyer, Martin Ha and General Manager Family and Community Services at commUnity+, Beth Stewart-Wright, met with Federal Member for Fraser, Dr. Daniel Mulino, last week to discuss the potential impacts that the proposed changes to the responsible lending laws are likely to have on the communities of the West.

Responsible lending provisions were enacted to protect the most vulnerable and disadvantaged members of the community from irresponsible lending practices by requiring credit providers to make reasonable enquiries about an applicant’s financial circumstances; their objectives; and make an assessment whether it is suitable and appropriate, in all the circumstances, to issue credit.

The proposed changes may lead to the improper provision of credit to households, and may also result in the short-term enjoyment of increased cash inflow, however, unsuitable loans provided to households incapable of servicing their debt will only injure families in the long term by compounding economic and psychological distress.

Yesterday, Dr. Mulino addressed our concerns in his address to Federal Parliament, using his voice to advocate for the most disadvantaged and vulnerable members of our communities.

16/02/2021

Thanks to Dr. Daniel Mulino for meeting with BMCLC’s Principal Lawyer, Martin Ha and General Manager of Family and Community Services at commUnity+, Beth Stewart-Wright, to discuss the proposed changes to the responsible lending laws.

At commUnity+, we work directly to support the most disadvantaged members of our community. Brimbank is the 3rd most disadvantaged LGA in Victoria, with debt, mortgage stress, family violence and infringements, some of the top legal issues our clients face. 11% of our clients with debt issues are also experiencing family violence and economic abuse.

The proposed changes to the responsible lending laws could put a significant financial strain on the vulnerable members of the community, particularly those at risk of or currently experiencing family violence. commUnity+ endorses CALC’s submission to the Senate Standing Committee, to promote effective screening, assessment and training among lenders to ensure the most vulnerable are not put at risk by irresponsible lending.