Melbourne, Australia, February 28, 2012 --(PR.com
)-- It was the unscrupulous lending practices of mortgage lenders in the US which sparked some of darkest times in the world’s economic markets – the spectacular collapse of the world’s largest banks and ripples which wobbled companies throughout the world. This phenomenon was part of the reason for the development of the National Consumer Credit Protection Act, implemented in 2010 to ensure that credit is only issued to clients who have the capacity to repay the loan. Lowe Finance, one of Melbourne’s leading niche car finance and equipment finance brokers, is seeing the positive effects from the enactment of these rules two years out from the financial crisis.
Lowe Finance, leading Melbourne car finance
and equipment financing broker, reports that consumers are generally receptive to the National Consumer Credit Protection Act’s requirements, despite the slightly increased administrative burden of the rules.
The National Consumer Credit Protection (NCCP) Act was written into law in 2010, and requires comprehensive reporting of a consumer’s credit history and capacity to repay a loan. Previously, many lenders used negative-only reporting, where negative incidents on a credit history were the main deciding factor in finance approvals.
Nicholas Lowe, director of Lowe Finance, has been happy to see the change in the lending market and say that consumers are happy with the increased protection as well. “The NCCP legislation has been a step in the right direction for the protection of consumers entering into credit agreements. Not only has it created safeguards to ensure consumers only enter into loan agreements that are suitable, it has weeded out unscrupulous brokers and lenders in the market,” Mr. Lowe said.
“At Lowe Finance, we can only see this as a positive because when consumers come to us for assistance, they know that we are compliant through our licence and that they will be looked after as the legislation intended,” Mr. Lowe continued.
Dun & Bradstreet report that in countries where comprehensive reporting is required, benefits include:
• Reduced default rates
• Reduced credit card write-offs (and therefore improved lender profitability and shareholder return)
• Improved access to credit for historically underserved markets such as women, young people and ethnic minorities
“The benefits are not always immediately obvious, but we find that when consumers know why they are required to provide extra information they are quite happy to comply. They understand it is for the greater good,” Mr. Lowe finished.
Lowe Finance is a licensed brokerage and deals only with lenders who also comply with the requirements of the NCCP Act. The company also offers car, truck and equipment finance for customers with bad credit, while maintaining consumer and lender protection.
About Lowe Finance
Lowe Finance is a client-focused finance and insurance broking business providing car finance and loans, as well as specialist finance and insurance products with competitive rates.
Lowe Finance has access to a broad range of lenders and can arrange finance for most makes and models of vehicles, including purchases through private sale transactions. We also specialise in Commercial Equipment Finance for all types of business and income generating assets.
Director Nick Lowe has over ten years’ experience in the Finance and Banking sector, seven years of which he has specialised in Automotive and Equipment Finance. For the past two years, Lowe Finance has provided finance and insurance services for the ULR Automotive group. Contact Lowe Finance today to see how we can assist you with your financial needs.