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Add your name to the open letter for safe lending laws

Join 125 organisations and thousands of people calling on the government to make lending fairer.

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Sign the open letter to save safe lending.

Dear Australian Parliamentarians,

The Federal Government has announced plans to axe safe lending laws – essential consumer protections designed to protect ordinary people from the sorts of terrible lending practices we saw during the global financial crisis and banking royal commission. 

We are calling on you to stand up for Australians and block this harmful law when it is introduced into Parliament. 

People will be worse off. When people are given loans or credit cards they can’t afford, the human cost is high. The banking royal commission heard shocking stories of banks giving aged pensioners 30-year mortgages, relying on fraudulent loan documents provided by car dealers, and paying thousands in kickbacks to loan ‘introducers’. We’ll see even more of this if banks and other lenders are not legally required to take care when lending. 

This will lead to a debt disaster. We are experiencing our first recession in nearly 30 years and high levels of household debt will slow down the national economic recovery. Australia already has the second highest level of household debt in the world. Banks and other lenders should not be given a green light by the government to burden people with even more debt and trap households in a cycle of persistent debt. 

This change would contradict the very first recommendation of the banking royal commission. Commissioner Kenneth Hayne called for safe lending laws to be enforced, not dismantled. 

We write to you as community organisations, financial counsellors, and thousands of people concerned about the government’s disastrous proposal. This policy will hurt people and hinder our economic recovery. These changes will take away people’s rights and give more power to the banks. 

If this law is passed, people will be left to pick up the pieces for years to come while banks and other lenders are given a blank cheque to profit from aggressive lending. We need you to stand up for our community and protect safe lending laws.

FAQ

The global financial crisis revealed shocking scandals where banks irresponsibly lent people loans they knew they could never afford. In 2009, the Federal Government passed important safe lending laws that required banks to ensure that people will not end up in significant hardship from a loan. This places some of the onus on the banks to ensure that people are not being sold into unaffordable loans. Learn more about why leading economists believe this will lead to a debt disaster.

The government is proposing to wind back safe lending laws. This means that people will have much weaker protections and banks will be allowed to sell unaffordable and expensive credit to people.

Our global economy is at its most precarious position since the Great Depression. Now is not the time to remove consumer protections and trap people in deeper household debt. The problems people face are about not enough income. More debt makes things worse. This policy is bad for Australian households and bad for the Australian economy. 

Once you sign on, your name will be added to our open letter and presented to key politicians when the government introduces its plans to Parliament. Unfortunately your name won't be published on this website as we can't fit everyone here, but it will be crucial in helping convince politicians just how many people support safe lending laws.

If you represent an organisation who would like to add your name to this campaign, you can get in touch here.

Logos of organisations that have signed the open letter to save safe lending.
Names of prominent individuals who have signed the open letter to save safe lending.
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