The Victorian Government has released its Government Response to the Consumer Credit Review .

The Government Response to the Victoria Consumer Credit Review supports several changes, including a ban on pre-approved credit card limit increases that do not allow the customer to choose their own limit.

The Government Response supports a range of measures, including:

    * standard warnings on all credit card account statements about the dangers of only making minimum repayments;
    * better protection for consumers who buy on vendor terms finance;
    * a Victoria-wide network of No Interest Loan Schemes so that low-income earners can afford to purchase essential household items without resorting to costly payday lenders;
    * improving the registration system for credit providers and requiring all lenders to be members of an approved alternative dispute resolution service;
    * working with industry to remove unfair contract terms from credit contracts in advance of applying unfair contract terms laws to credit;
    * targeted education campaigns on credit to vulnerable groups, especially senior Victorians considering equity release products;
    * more protection for consumers taking out reverse mortgages including preventing ‘negative equity’;
    * national solutions to encourage more responsible lending practices, especially in relation to credit cards;
    * developing a balanced way to address unreasonable credit fees and charges; and
    * more flexible powers for the Government to prosecute dodgy credit providers.