Small Loan Industry Association To Set Regulations For Loan Providers

Nov 11 2016



(The full media release is available as a pdf at the bottom of this page.)

The National Credit Providers Association (NCPA), the peak body for Small Loan Providers in Australia or incorrectly known as the ‘payday loan’ industry has begun the process of formulating additional industry standards.  

The Board of NCPA has agreed to develop a Code of Conduct and has begun initial consultation in line with the Australian Securities & Investments Commission (ASIC) guidelines and standards as per RG183. The Code of Conduct will be developed by an external agency and will be a long and thorough process.  

Talking on behalf of the NCPA, Phil Johns, CEO stated: “This is a formal and long-term plan from the NCPA to self-regulate the industry it represents and set strict best practice rules in place that will support the existing legislation for Small Amount Credit Contracts (SACCs) that are legislated by the government.”

NCPA as the leading body has been integral to the process of self-regulating its industry and advocates for responsible lending to protect consumers in Australia. NCPA were highly involved in the legislation that abolished ‘payday loans’ back in March 2013 and advised on the legislation for SACCs.  

NCPA is constantly providing insight on the industry and commissioned in 2013 the most comprehensive ongoing research into the SACC industry via an independent company CoreData.* This report from CoreData is publically available via for all stakeholders to review,  so informed decisions on the future of the industry can be made. The update to the CoreData report for the 2015-16 Financial Year should be available early December.  

Phil Johns, CEO, NCPA continued: “The small loans industry is highly regulated. It is ruled by complex legislation and it is our job as the industry leader to make sure we are constantly reviewing and providing our members with the support for Responsible Lending.  

“By commencing this process towards a Code of Conduct we are able to work with ASIC and our members to ensure both SACC lenders and consumers are protected. The viability of this industry depends on it,” concluded Mr Johns.  

The NCPA is lobbying extensively in Canberra to educate government on the SACC product and industry, post the ‘payday’ era.

NCPA is committed to educating government, media, and the public on the facts about small loans. For more information about small loans and the wider industry, please visit   

*For the first time, new research commissioned by NCPA and completed independently by CoreData has revealed the facts and figures for the small amount lending industry historically known as Pay Day Loans; with nearly two million consumers completing an application for small amount loans between 2014 -2015, the need for this highly regulated small amount financial product remains staggeringly high for everyday Australians.

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Interviews with Phil Johns, CEO of NCPA are welcomed upon request.