Western Australians taking loans at current interest rates have been brought under the protection of the Credit Act by the State Government.
Until yesterday, consumer protection was given only to people who borrowed at interest rates above 14 per cent per annum.
Productivity and Labour Relations Minister Yvonne Henderson said this figure had been realistic when the Government brought in the Credit Act in 1984.
Interest rates then ranged from 16 to 25 per cent and higher.
"We did not envisage that they would fall to the present rate of around 12 per cent," Mrs Henderson said.
"As present indications are that they are unlikely to rise substantially for some time, I amended the Act during the last session of Parliament.
"This amendment took effect yesterday and I am pleased that people using credit at current rates will now be given adequate consumer protection."