Australia’s corporate regulator has extended its product intervention orders on short‑term credit and continuing credit contracts, locking them in until they are revoked or automatically lapse on 1 October 2032.
The Australian Securities and Investments Commission (ASIC) said the measures, first introduced on 15 July 2022, would continue to curb lending models that impose excessive fees, including arrangements that push total costs beyond caps set under the National Credit Code. The bans target products used by financially vulnerable consumers seeking funds for basic living expenses, many of whom had been turned down for regulated credit.
ASIC said the orders have bolstered consumer safeguards since coming into force and reduced the risk of significant harm tied to high‑cost lending.
ASIC deputy Chair Sarah Court said, ‘Extending these product intervention orders ensures continued protection in the market against these high-cost lending products. Predatory lending practices targeting vulnerable consumers is an ongoing priority of ASIC, and we will continue to intervene to address this type of conduct.’
The decision follows ASIC consultations on the measures, including Consultation Paper 355 in December 2021 and Consultation Paper 371 in August 2023, and comes after approvals from the Assistant Treasurer and Minister for Financial Services, Stephen Jones.
The extension is given effect through two legislative instruments: ASIC Corporations (Product Intervention Order Extension – Short Term Credit) Instrument 2023/956 and ASIC Corporations (Product Intervention Order Extension – Continuing Credit Contracts) Instrument 2023/957.
Under Australia’s product intervention regime, ASIC can step in where it identifies significant consumer detriment, including by banning or modifying products and features. The regulator said it will continue monitoring the market for avoidance tactics and non‑compliance as the extended orders remain in place.
