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 133CC   LICENSEE MUST NOT ENTER INTO A SMALL AMOUNT CREDIT CONTRACT IF THE REPAYMENTS DO NOT MEET THE PRESCRIBED REQUIREMENTS  

Requirement

133CC(1)    

A licensee must not enter into, or offer to enter into, a small amount credit contract with a consumer who will be the debtor under the contract if the repayments that would be required under the contract would not meet the requirements prescribed by the regulations.

Civil penalty: 5,000 penalty units.

Note:

For example, the regulations may provide that the amount of a repayment must not exceed a specified percentage of the consumer ' s income.

Offence

133CC(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.

Loss of certain fees and charges

133CC(3)    

If a licensee enters into a small amount credit contract in contravention of subsection (1) , then:

(a)    the consumer is not liable (and is taken never to have been liable) to pay a fee or charge of a kind mentioned in paragraph 31A(1)(a) , (b) , (c) or (d) of the National Credit Code under that small amount credit contract (whether or not the liability is imposed consistently with the National Credit Code); and

(b)    the consumer may recover as a debt due to the consumer any amounts paid by the consumer that, in accordance with paragraph (a) of this subsection, the consumer is not liable to pay (or is taken never to have been liable to pay).

Criminal penalty: 50 penalty units.