National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-2C - LICENSEES THAT ARE CREDIT PROVIDERS UNDER CREDIT CONTRACTS: ADDITIONAL RULES RELATING TO SHORT-TERM AND SMALL AMOUNT CREDIT CONTRACTS  

Division 2 - Short-term and small amount credit contracts  

SECTION 133CA   PROHIBITION ON ENTERING, OR INCREASING THE CREDIT LIMIT OF, SHORT-TERM CREDIT CONTRACTS  

Prohibition

133CA(1)    
A licensee must not:

(a) enter a short-term credit contract with a consumer who will be the debtor under the contract; or

(b) increase the credit limit of a short-term credit contract with a consumer who is the debtor under the contract.

Civil penalty: 5,000 penalty units.

Offence

133CA(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: 50 penalty units.