ABSTRACT
The Uniform Consumer Credit Code is the primary instrument regulating consumer credit in all States and Territories in Australia, Section 70 of the Code provides a potential mechanism for dealing with over-commitment by allowing a Court or Tribunal to 're-open' an unjust transaction. Consumer groups and media commentators have long raised concerns about the risks of increasing levels of household debt and over-commitment, linking the issues at least in part to irresponsible lending practices. While legislative reform to deal with over-commitment and responsible lending has been slow to develop, there has been an increasing emphasis on financial literacy initiatives to help consumers make better decisions about financial services, including consumer credit. In 2004, the Code of Banking Practice was revised and a new clause was introduced to deal with responsible lending. All retail banks in Australia are members of the Banking and Financial Services Ombudsman, a free and independent dispute resolution service.
