Proposed Consumer Law Reforms and Your Boat Loans

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If you seek some financial help or a loan to buy your new favourite boat, here few reforms we think are necessary for you to know. The thing must be under your consideration that what rules and regulations are about to take a twist and how you’ll be affected by them. When the government decides to change a law, it has to be passed by various components of the government. There are two houses, and the law requires approval from both of them. We expect that this write-up will help you regarding your queries.

Law – and especially consumer finance laws – are rarely static. However, if you have a firm foundation from the previous set of rules, it can be trivial to understand the new changes and how they affect you, your existing loans, and any loans you make in the future – regarding your boats, that is. For example, the treasurer, Josh Frydenberg, announced some change to a great-recession era law to incentivise the credit flow. Banks are not legally mandated to check if the consumer can afford the loan before approving it; thus, it is a lot easier for Australians to borrow and buy things they could not have done without a more accessible source of credit.

There is a ‘kerfuffle’ since this also means banks can market more credit to Australians who do not know any better or have a trusting attitude to life in general. Then they can fall into unproductive debt or bankruptcy.

The present rules say that despite spendings, lenders are encouraged to target the income. The simple meaning is that you can buy your new boat with a loan.

Well, your loans can go much quicker.

But, unless you budget it yourself, you might fall into debt. And have to pay off interest before paying off the loan, which can leave you with for longer.

It is the trade-off with removing a checking process, much faster loans, but more accessible debt traps.

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If the date of the application says before 1 April this year, it will not affect your loan. But if the date crosses the limit, reforms can affect your loan application. Although loan approval does not take so long, lenders or loan giving companies do the fast loan delivery, but there can be delayed loan delivery.

Staying connected with your lenders to locate the status of your application can be helpful. They will keep you updated regarding the policy changes and the law reforms regarding the loan application status. In addition, your consultant can assist you in providing the appropriate and correct information about your application status in particular.

If you want any quote regarding your loan application, contact us. Also, subscribe to our newsletter for news updates regarding law reforms and their impact on the consumers.

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