Credit where it's due
For many people, credit is a fact of life and often part of exciting decisions like buying a home or getting a new car. If used well, credit can help you achieve your financial goals.
But there are also pitfalls: you pay for the convenience of credit through fees, charges and interest. So borrowing money can be expensive. You might also be tempted to borrow more than you can afford. |  |
Whether you're getting a loan to buy a home or simply using credit cards as a convenient way to make purchases and pay bills, stay in control of your credit by following our six steps to smarter borrowing.
Find out more about the new national law for credit.
ASIC's role in credit and borrowing money
On 1 July 2010, ASIC became the national regulator for consumer credit and finance broking, taking over from the states and territories.
For more information about the new regulatory framework including the legislation, licensing process, general obligations and the timeframe in which the changes will take effect, go to www.asic.gov.au/credit.
Look for the licence
From 1 July 2010, anyone who wants to engage in credit activities (including brokers) must be registered or licensed with ASIC or be a representative of someone who is registered or licensed (that is, they must either have their own licence or come under the umbrella of another licensee as an authorised credit representative or employee). If they aren’t they are operating illegally, so make sure you only deal with someone who is registered or licensed.
There is currently an exemption from registration and licensing for credit assistance provided through some businesses (for example, retail stores and car yards). While the store may be exempt, the actual credit provider must still be licensed or registered. If you are unsure who the credit provider is, ask the salesperson or broker to point out the name in your credit contract.
To find out if a credit provider or broker is registered, search ASIC's online database or phone ASIC’s Infoline on 1300 300 630.
From 1 January 2011, anyone engaging in credit activities must give you a Credit Guide (with information including their licence number, fees and details of your right to complain) before they provide you with any credit assistance.
FIDO Website: Printed 09/10/2010
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Download our credit factsheets.
