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 133CD   LICENSEE MUST NOT ENTER INTO A SMALL AMOUNT CREDIT CONTRACT IF REPAYMENT AMOUNTS AND INTERVALS ARE NOT EQUAL  

Requirement

133CD(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 any of the following applies:

(a)    repayments that would be required under the contract are not equal;

(b)    the intervals between repayment dates would not be equal;

(c)    the interval between the date on which credit would be first provided under the contract and the first repayment date would be longer than twice the interval between the first repayment date and the second repayment date.

Civil penalty: 5,000 penalty units.

133CD(2)    
For the purposes of paragraph (1)(a) , repayments that would be required under a small amount credit contract are taken to be equal if:

(a)    each repayment is of the same amount; or

(b)    both of the following apply:

(i) each repayment (other than the last repayment) is the same amount;

(ii) the last repayment is up to 5% less than each other repayment; or

(c)    the repayments meet the conditions determined by ASIC under subsection (5) .

133CD(3)    
A repayment date in relation to a small amount credit contract is the date on or by which a repayment is required to be made under the contract.

133CD(4)    
For the purposes of paragraph (1)(b) , if a small amount credit contract provides that:

(a)    repayments that would be required under the contract are to be made on or by a fixed day of each week, fortnight or month; and

(b)    if that fixed day falls on a day that is not a business day - the repayment would be required to be made on or by the immediately preceding or succeeding business day;

the intervals between repayment dates are taken to be equal.

133CD(5)    
ASIC may, by legislative instrument, determine conditions for the purposes of paragraph (2)(c) .

133CD(6)    
Nothing in this section is intended to limit the regulations which may be made for the purposes of section 133CC .

Offence

133CD(7)    
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

133CD(8)    
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: 10 penalty units.

133CD(9)    
Subsection (8) is an offence of strict liability.