Premium funders are calling for changes to new national consumer credit laws that impact on the sector.

The National Consumer Credit Protection Regime, to be introduced on July 1, provides a national code for the provision of credit to consumers for wholly or predominantly personal, household or domestic purposes.

Representative body the Insurance Premium Financiers of Australia (IPFA) is preparing draft submissions in a bid to force amendments to certain parts of the legislation.

IPFA Chairman Bob Dodd told insuranceNEWS.com.au the legislation offers the chance to streamline and rationalise existing state-based regulation.

IPFA members believe where insurance premium financing is arranged through a management company acting on behalf of a body corporate or strata, it should be exempt from the regulations.

Currently such arrangements are treated as consumer transactions, requiring the provider to hold a consumer credit licence.

Mr Dodd says premium funders support credit licensing but in regard to that type of transaction “it makes sense to classify them as commercial lending and therefore exempt” providers from that requirement.

The organisation has also called for clarification of a point of sale exemption definition and more consistent treatment of pay-by-the-month facilities.

The IPFA is opposed to existing exemptions for insurers while premium funders remain captured by the legislation.

Insurance brokers who help clients apply for or secure premium funding are also likely to face compliance issues regarding the new regulations, unless they limit their services to the passing on of factual information and use prepared documents or activities.