National Consumer Credit Protection Act 2009

CHAPTER 2 - LICENSING OF PERSONS WHO ENGAGE IN CREDIT ACTIVITIES  

PART 2-2 - AUSTRALIAN CREDIT LICENCES  

Division 5 - Obligations of licensees  

Subdivision C - Notifying and remediating consumers affected by reportable situations  

SECTION 51A   REPORTING TO CONSUMERS AFFECTED BY A REPORTABLE SITUATION  

Notifying an affected consumer of a reportable situation

51A(1)    
A licensee must take reasonable steps to notify a consumer (the affected consumer ) of a reportable situation in accordance with this section if:

(a)    the licensee, or a representative of the licensee, provides or has provided credit assistance to the affected consumer in relation to a credit contract secured by a mortgage over residential property; and

(b)    the licensee, or the representative of the licensee, is a mortgage broker; and

(c)    there are reasonable grounds to believe that a reportable situation has arisen in relation to the licensee as mentioned in:

(i) paragraph 50A(1)(a) (significant breach of a core obligation); or

(ii) subsection 50A(2) (gross negligence or serious fraud); and

(d)    there are reasonable grounds to suspect that:

(i) the affected consumer has suffered or will suffer loss or damage as a result of the reportable situation; and

(ii) the affected consumer has a legally enforceable right to recover the loss or damage from the licensee.

Civil penalty: 5,000 penalty units.

Form and period for giving notice

51A(2)    
A notice under this section must:

(a)    be given in writing within 30 days after the licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs (1)(a) , (b) , (c) and (d) ; and

(b)    if ASIC has approved the form in which the notice must be given:

(i) be in the approved form; and

(ii) include the information, statements, explanations or other matters required by the form; and

(iii) be accompanied by any other material required by the form.

Qualified privilege

51A(3)    
A licensee has qualified privilege in relation to a notice given under this section.

51A(4)    
A licensee who has qualified privilege under subsection (3) in respect of conduct is also not liable for any action based on breach of confidence in relation to that conduct.