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The ability to pursue and prosecute banks and other lenders that flout the Consumer Credit Code will be strengthened under legislation introduced to State Parliament this week. Fair Trading Minister Merri Rose says the amendment Bill will extend from two to six years the period in which civil action can be taken against lenders. The present restriction, she says, is a major limiting factor on the office's ability to police the actions of lenders and their compliance with the code. "It also significantly undermines the deterrent value of the civil penalty regime," Rose says. "Lenders currently know that even if hey breach the key requirements of the code, they have the option of doing nothing and hoping no one notices for two years – after which they are immune from any potential civil penalty action by the Office of Fair Trading." Breaches of the code will include failing to disclose details of fees and charges payable under the loan. The amendment Bill also requires banks and other lenders to give 'hype-free' information about interest rates and charges for fixed-term contracts. Rose argues that the introduction of mandatory comparison rates will help consumers in making decisions about their financial futures by providing them with more information about the products they are considering. "The comparison rate is a mathematical method of reducing all of the interest rates, fees and charges into a single percentage figure," she says. Under these new rules, lenders will need to advertise the total cost of personal fixed-term loans. "All lenders will be required to quote a uniform comparison rate in all forms of advertising, including brochures and websites. The comparison rate will have to be as prominently displayed as any other rate figure cited," she says. The new laws will carry court-imposed fines of up to $500,000 a breach. Rose points out that the amendment brings the code into line with most other civil actions, including tort and breach of contract-based claims, as well as the civil penalty provisions of the Corporations Law.