National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-2D - LICENSEES AND REVERSE MORTGAGES  

SECTION 133DE   REPRESENTATIONS THAT USE THE TERM " REVERSE MORTGAGE " ETC.  

Credit service providers

133DE(1)    
A licensee must not, in providing or offering to provide a credit service to a consumer, use either of the following terms (either alone or in combination with other words or letters) in a representation to the consumer about an actual or proposed credit contract or mortgage:

(a) the phrase " reverse mortgage " ;

(b) another term (whether or not in English) of similar import to the phrase " reverse mortgage " .

Civil penalty: 5,000 penalty units.

Credit providers

133DE(2)    
A licensee that is a credit provider must not use either of the following terms (either alone or in combination with other words or letters) in a representation to a consumer about an actual or proposed credit contract or mortgage:

(a) the phrase " reverse mortgage " ;

(b) another term (whether or not in English) of similar import to the phrase " reverse mortgage " .

Civil penalty: 5,000 penalty units.

Defence

133DE(3)    
For the purposes of subsections (1) and (2), it is a defence if:

(a) the representation truly represents that a credit contract:

(i) is or will be a credit contract for a reverse mortgage; or

(ii) is not or will not be a credit contract for a reverse mortgage; or

(b) the representation truly represents that a mortgage:

(i) is or will be part of a reverse mortgage; or

(ii) is not or will not be part of a reverse mortgage.