Hi tutor, i would like to check if my explanation below is correct? 3. What is the purpose of NCCP Act? Why was this piece of legislation enacted?

A: Before the enactment of the National Consumer Credit Protection Act 2009 (cth) (NCCP Act) in Australia, there were no standard processes to conduct providers who are providing credit services to consumers. As there were no regulations to follow, different providers shared different practices on licensing and registration processes. Then there was an increase in the number of credit products, which also increased the complexity as consumers find it harder to understand which product is suitable for their needs.

NCCP acknowledged this issue in the credit market industry and hence decided to set a regulatory framework to help providers to lessen the complexity and set standard processes for all providers to follow as well as to protect the consumers. The purpose is to improve the conduct of the credit providers & intermediaries in the industry over time.