National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-1 - LICENSEES THAT PROVIDE CREDIT ASSISTANCE IN RELATION TO CREDIT CONTRACTS  

Division 3 - Quote for providing credit assistance etc. in relation to credit contracts  

SECTION 114   QUOTE FOR PROVIDING CREDIT ASSISTANCE ETC.  
Requirement to give quote

114(1)    
A licensee must not provide credit assistance to a consumer by:

(a) suggesting that the consumer apply, or assisting the consumer to apply, for a particular credit contract with a particular credit provider; or

(b) suggesting that the consumer apply, or assisting the consumer to apply, for an increase to the credit limit of a particular credit contract with a particular credit provider; or

(c) suggesting that the consumer remain in a particular credit contract with a particular credit provider;

unless:

(d) the licensee has given the consumer a quote in accordance with subsection (2); and

(e) the consumer has signed and dated that quote or otherwise indicated the consumer ' s acceptance of it (and the day that happens) in the manner (if any) prescribed by the regulations; and

(f) the licensee has given the consumer a copy of the accepted quote.

Civil penalty: 5,000 penalty units.

114(2)    
The quote must:

(a) be in writing; and

(b) give information about the credit assistance and other services that the quote covers; and

(c) specify the maximum amount that will be payable by the consumer to the licensee in relation to the licensee ' s credit assistance and other services; and

(d) give information about what that amount relates to, including:

(i) the maximum amount of the licensee ' s fee for providing the credit assistance and other services; and

(ii) the maximum amount of charges that will be incurred by the licensee for matters associated with providing the credit assistance and other services; and

(iii) the maximum amount of fees or charges that will be payable by the licensee to another person on the consumer ' s behalf; and

(e) state whether the maximum amount or any other amount will be payable by the consumer to the licensee if a credit contract is not entered or a credit limit is not increased; and

(f) comply with any other requirements prescribed by the regulations.

Manner of giving quote

114(3)    
The licensee must give the quote to the consumer in the manner (if any) prescribed by the regulations.

No demanding payment of amount exceeding quoted amount

114(4)    

The licensee must not request or demand payment of an amount that exceeds the maximum amount set out in the quote.

Civil penalty: 5,000 penalty units.

No demanding payment before credit assistance provided

114(5)    

The licensee must not request or demand payment of an amount for the licensee ' s credit assistance before the licensee provides the assistance.

Civil penalty: 5,000 penalty units.

Caveats

114(6)    

The licensee must not lodge, or threaten to lodge, a caveat in relation to land to induce the consumer to pay an amount to the licensee for the licensee ' s credit assistance or other services.

Civil penalty: 5,000 penalty units.