Consumer Finance in Australia

Consumer finance in Australia

The new National Consumer Credit Protection Act (NCCPA) has a number of implications for consumers in Australia. The new law defines the phrase “acts as an intermediary” and requires persons engaged in such activities to hold a credit licence. The new rules apply to anyone who offers credit or is involved in the provision of financial services. This means that non-conforming lenders, as well as people who offer financial services over the Internet, will now be subject to a national credit regime.

Non-conforming lenders

Private lenders have stepped in to fill the gap left by banks in the Australian lending market. The Financial Services Royal Commission highlighted the unethical lending practices of banks and other financial institutions, and the major lenders implemented stricter approval criteria to prevent such situations. However, as a result, more bank finance applications are becoming non-conforming. A number of non-conforming lenders have emerged, and today, there are more than 12 major non-conforming lenders operating in Australia.

Australian Credit Licence

To operate in the Australian credit market, companies must hold an Australian Credit Licence (ACL). This license is essential for anyone engaged in a range of activities that collect, use, and disclose personal information. Generally, credit activity involves consumer loans and leases. It also includes lending to commercial entities and performing obligations or rights of lenders and lessors. ACL holders must adhere to strict rules on how they handle consumer information.

Australian Small Business Borrower’s Bill of Rights

The Small Business Borrowers’ Bill of Rights was introduced in Australia in August 2015 and has been updated every year since then. The aims of the Bill of Rights are to ensure responsible lending practices for small business customers and ensure the protection of borrowers. In addition, the Bill of Rights includes the right to transparent pricing and non-abusive products. The ABA’s new Banking Code of Practice has been approved by the Australian Securities and Investments Commission.

Latitude Financial Services

Latitude Financial Services operates across Australia and New Zealand, employing over 1,600 people and serving more than 2.5 million customers. The company was founded in 2014 and is headquartered in Melbourne, Australia. It has an extensive network of brokers and retail branches to help customers get the finance they need. In addition to this, it also offers insurance products and services. Whether you’re planning to purchase a new car or a home, Latitude can help you.

The Business

Consumers in Australia increasingly rely on credit cards for making purchases. Historically, credit cards have been convenient payment tools and sources of credit. Most of the outstanding balances are paid in full by the due date, but the ratio of outstanding advances to total credit card transactions has steadily decreased from 1985 to 2003. Until 1997, the percentage of outstanding credit card debt amounted to less than ten percent of total personal credit. In 2007, however, the percentage rose to 29 percent.


Harmoney is a provider of consumer finance in Australia and New Zealand. The company has approximately 700,000 accounts and has generated more than 2.1 billion dollars in direct loan originations over the past four years. The company’s profit and loss margins are relatively stable, with a pro forma cash net profit after tax of $7.7 million and an operating loss of $8.9 million after tax before non-cash items. Its strong direct relationship with customers has resulted in high levels of customer satisfaction and return.