National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-4 - LICENSEES THAT ARE LESSORS UNDER CONSUMER LEASES  

Division 5 - Special rules for consumer leases for household goods  

SECTION 156B   LICENSEE MUST NOT ENTER INTO A CONSUMER LEASE FOR HOUSEHOLD GOODS IF THE PAYMENTS DO NOT MEET THE PRESCRIBED REQUIREMENTS  

Requirement

156B(1)    
A licensee must not enter into, or offer to enter into, a consumer lease for household goods with a consumer who will be the lessee under the lease if the amount that would be required to be paid under the lease by the lessee 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 payment must not exceed a specified percentage of the lessee ' s income.

Offence

156B(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 amounts

156B(3)    
If the licensee enters into a consumer lease for household goods in contravention of subsection (1) , then:

(a)    the lessee is not liable (and is taken never to have been liable) to pay any amount under that consumer lease that exceeds the base price of the goods hired under that consumer lease (whether or not the liability is imposed consistently with the National Credit Code); and

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