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 4 - Obligations of credit assistance providers before providing credit assistance for credit contracts  

SECTION 115   OBLIGATIONS OF CREDIT ASSISTANCE PROVIDERS BEFORE PROVIDING CREDIT ASSISTANCE FOR CREDIT CONTRACTS  

115(1)    
A licensee must not provide credit assistance to a consumer on a day (the assistance day ) 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;

unless the licensee has, within 90 days (or other period prescribed by the regulations) before the assistance day:

(c) made a preliminary assessment that:

(i) is in accordance with subsection 116(1) ; and

(ii) covers the period proposed for the entering of the contract or the increase of the credit limit; and

(d) made the inquiries and verification in accordance with section 117 .

Civil penalty: 5,000 penalty units.

115(2)    
A licensee must not provide credit assistance to a consumer on a day (the assistance day ) by suggesting that the consumer remain in a particular credit contract with a particular credit provider unless the licensee has, within 90 days (or other period prescribed by the regulations) before the assistance day:

(a) made a preliminary assessment that:

(i) is in accordance with subsection 116(2) ; and

(ii) covers a period in which the assistance day occurs; and

(b) made the inquiries and verification in accordance with section 117 .

Civil penalty: 5,000 penalty units.