National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-2B - LICENSEES THAT ARE CREDIT PROVIDERS UNDER CREDIT CONTRACTS: ADDITIONAL RULES RELATING TO CREDIT CARD CONTRACTS  

Division 4 - Offers etc. to increase, and entitlement to reduce, credit limit of credit card contract  

SECTION 133BE   CREDIT PROVIDER NOT TO OFFER ETC. TO INCREASE CREDIT LIMIT OF CREDIT CARD CONTRACT  

Requirement

133BE(1)    

A licensee who is the credit provider under a credit card contract must not make a credit limit increase invitation in relation to the contract.

Civil penalty: 5,000 penalty units.

Note:

For other provisions that must be complied with in relation to increasing credit limits, see:

(a) Divisions 3 and 4 of Part 3-2 ; and

(b) subsection 67(4) of the National Credit Code.

Offence

133BE(2)    

A person commits an offence if:

(a) the person is subject to a requirement under subsection (1); and

(b) the person engages in conduct; and

(c) the conduct contravenes the requirement.

Criminal penalty: 100 penalty units.

Strict liability offence

133BE(3)    

A person commits an offence if:

(a) the person is subject to a requirement under subsection (1); and

(b) the person engages in conduct; and

(c) the conduct contravenes the requirement.

Criminal penalty: 20 penalty units.

133BE(4)    
Subsection (3) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code .

Meaning of credit limit increase invitation

133BE(5)    
A licensee makes a credit limit increase invitation , in relation to a credit card contract, if:

(a) the licensee gives any form of communication that relates to the contract to the consumer who is the debtor under the contract; and

(b) one or more of the following conditions is satisfied in relation to the communication:

(i) the communication offers to increase the credit limit of the contract;

(ii) the communication invites the consumer to apply for an increase of the credit limit of the contract;

(iii) the licensee gave the communication to the consumer for the purpose (or for purposes including the purpose) of encouraging the consumer to consider applying for an increase of the credit limit of the contract.

133BE(6)    

The regulations may make provisions that apply to determining whether a communication is covered by the definition in subsection (5).