Page 6392 - Week 19 - Tuesday, 17 December 1991
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APPENDIX 8:
(Incorporated in Hansard on 17 December 1991 at page 6191)
MINISTER FOR HOUSING AND COMMUNITY SERVICES
LEGISLATIVE ASSEMBLY QUESTION
QUESTION TAKEN ON NOTICE
19 NOVEMBER 1991
Mrs Nolan - asked the Minister for Housing and Community Services
The brochure promoting the scheme states loan repayments are set at 27 per cent of household income. However, the small print in the contract says the percentage is at the discretion of the Commissioner.
What assurances can the Minister give that Trust clients will not be misled /disadvantaged by participating in the scheme?
Mr Connolly - the answer to the Members question is as follows:-
The brochure promoting the HomeBuyer program is not intended to mislead or disadvantage borrowers. The program extends access to home ownership to low and moderate income earners by increasing their capacity to borrow. The brochure highlights key points.
I acknowledge however that taken in isolation, the brochure could mislead a person about their consumer rights. In reality however, borrowers are in receipt of additional information that explains the terms and conditions of the current loan program.
The ACT Housing Trust is indeed aware of the Australia wide credit reform processes, particularly in respect of information disclosure. With this in mind, I am pleased to be able to say that the Trust is currently examining a draft of the Uniform Credit Bill with a view of ensuring that programs administered on behalf of the government meet the highest standards of consumer protection.
As part of this exercise, all home loan assistance information, including the HomeBuyer brochure, will be reviewed and modified as necessary to ensure that the cost of credit is disclosed and that the documents otherwise comply with the highest standards of consumer protection.
As an interim step and to eliminate any ambiguity that may exist in the text, the Commissioner for Housing is now improving the brochure by removing specific reference to any rate in the brochure itself. All program variables such as interest rates and the date of effect, will be included in a loose leaf flyer which will accompany the brochure
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