National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-4 - LICENSEES THAT ARE LESSORS UNDER CONSUMER LEASES  

Division 3 - Obligation to assess unsuitability  

SECTION 154   WHEN CONSUMER LEASE MUST BE ASSESSED AS UNSUITABLE  
Requirement to assess the lease as unsuitable

154(1)    
The licensee must assess that the consumer lease will be unsuitable for the consumer if the lease will be unsuitable for the consumer under subsection (2).

Note:

Even if the lease will not be unsuitable for the consumer under subsection (2), the licensee may still assess that the lease will be unsuitable for other reasons.

Particular circumstances when the lease will be unsuitable

154(2)    
The lease will be unsuitable for the consumer if, at the time of the assessment, it is likely that:

(a) the consumer will be unable to comply with the consumer ' s financial obligations under the lease, or could only comply with substantial hardship, if the lease is entered in the period covered by the assessment; or

(b) the lease will not meet the consumer ' s requirements or objectives if the lease is entered in the period covered by the assessment; or

(c) if the regulations prescribe circumstances in which a consumer lease is unsuitable - those circumstances will apply to the lease if the lease is entered in the period covered by the assessment.

Civil penalty: 5,000 penalty units.

154(3)    
For the purposes of paragraph (2)(a), it is presumed that, if the consumer could only comply with the consumer ' s financial obligations under the lease by selling the consumer ' s principal place of residence, the consumer could only comply with those obligations with substantial hardship, unless the contrary is proved.

Information to be used to determine if lease will be unsuitable

154(4)    
For the purposes of determining under subsection (2) whether the lease will be unsuitable, only information that satisfies both of the following paragraphs is to be taken into account:

(a) the information is about the consumer ' s financial situation, requirements or objectives, or any other matter prescribed by the regulations under paragraph 153(1)(d) or (e);

(b) at the time of the preliminary assessment:

(i) the licensee had reason to believe that the information was true; or

(ii) the licensee would have had reason to believe that the information was true if the licensee had made the inquiries or verification under section 153.