Consumer leasing is an important part of Australian financial services, and one that has been growing over recent years. A report by IBISWorld estimated that the size of the Australian consumer leasing market in 2015-16 was around $596 million (up from $570 million in 2014). This market is mostly comprised of rentals of electronic goods and household appliances.
Although there are strict regulations around the provision of credit in Australia through the National Consumer Credit Protection Act 2009 (Cth) (National Credit Act), there have been calls to tighten up the regulations further for small amount credit contracts (SACC) and consumer leasing that could result in significant change to this sector of the credit industry.
In this course we will discuss the key elements of consumer leasing. The course concludes with a case study based on a review made by the Credit and Investments Ombudsman (CIO), which illustrates areas in which it is important to give and get the right information from consumers.
- Define what consumer leasing is and how it works
- Describe alternatives to consumer leases
- Explain key regulations that apply to participants in leasing arrangements
- Outline proposed changes to the regulations
- Discuss the areas in which it is important to give and get the right information from consumers.
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