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 5 - Fees, indirect remuneration etc. relating to credit contracts  

SECTION 121   FEES, INDIRECT REMUNERATION ETC. RELATING TO CREDIT CONTRACTS  
Requirement for disclosure

121(1)    
A licensee must, at the same time as providing 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;

give the consumer a credit proposal disclosure document in accordance with subsection (2).

Civil penalty: 5,000 penalty units.

121(2)    
The credit proposal disclosure document must contain the following:

(a) the total amount of any fees or charges that the consumer is liable to pay to the licensee in relation to the credit contract and the method used for working out that amount;

(b) a reasonable estimate of the total amount of any indirect remuneration that the licensee, or an employee, director or credit representative of the licensee, is likely to receive in relation to the credit contract and the method used for working out that amount;

(c) a reasonable estimate of the total amount of any fees or charges that the consumer is likely to be liable to pay to the credit provider in relation to applying for the credit contract;

(d) a reasonable estimate of the total amount of any fees or charges that the consumer is likely to be liable to pay to any other person in relation to applying for the credit contract;

(e) if the credit is to be applied to pay any of the amounts in the above paragraphs - a reasonable estimate of the likely amount of credit that will be available to the consumer after payments under paragraphs (a), (c) and (d) are made.

121(3)    
For the purposes of paragraph (2)(b), the regulations may prescribe:

(a) the method for working out amounts of indirect remuneration; and

(b) how amounts of indirect remuneration must be described.

Manner of giving credit proposal disclosure document

121(4)    
The licensee must give the credit proposal disclosure document to the consumer in the manner (if any) prescribed by the regulations.