Parliamentary Joint Committee Recommendations (4179T)
December 06 2011 - 3:00AM
UK Regulatory
TIDMCCVU
RNS Number : 4179T
Cash Converters International Ld
06 December 2011
Cash Converters International Ld
Parliamentary Joint Committee Recommendations
Cash Converters International Limited ("CCV") welcomes the
recommendations made by the Parliamentary Joint Committee on
Corporations and Financial Services in its report on the phase II
reforms proposed by the Government as set out in the CONSUMER
CREDIT AND CORPORATIONS LEGISLATION (ENHANCEMENTS) BILL 2011.
Following representations from CCV, its customers and other
industry executives, the Committee, in its report released on the
Friday 2(nd) December, 2011, analysed a wide range of matters
pertaining to the Bill. Of the greatest relevance to CCV is the
Committee's finding concerning short term small amount credit
contracts as set out in the CCV announcement on 25 August 2011.
The Committee has concluded that the proposed fee caps
comprising a 10% establishment fee and a 2% monthly fee are
unworkable. The Committee said: "In this regard, it does not appear
that an appropriate balance has been struck between consumer
protection and industry viability." The Committee has recommended
that the Government revisit key aspects of its reform package with
further industry consultation.
CCV looks forward to working with the Government and industry
representatives to achieve solutions which do achieve the right
balance.
Managing Director Peter Cumins said: "We encourage the
Government to amend its proposed regulation of the sector in line
with the Committee's recommendations. The Company has always
welcomed regulation that protects vulnerable and disadvantaged
Australians. The Committee's thorough examination of the issues and
its clear recommendations, gives rise to hope that a sensible
outcome can be achieved which preserves a viable industry and
maintains access to short term loans for all those Australians who
need this form of finance".
Ralph Groom
Company Secretary
6 December 2011
This information is provided by RNS
The company news service from the London Stock Exchange
END
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