National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-6A - MISCELLANEOUS RULES  

Division 2 - Representations  

SECTION 160B   " INDEPENDENT " , " IMPARTIAL " OR " UNBIASED " ETC.  

160B(1)    
A licensee must not, in providing or offering to provide a credit service to a consumer, use any of the following terms (either alone or in combination with other words or letters) in a representation to the consumer about the licensee, the service or the licensee ' s actions in providing the service:

(a) the word " independent " ;

(b) the word " impartial " ;

(c) the word " unbiased " ;

(d) another term (whether or not in English) that is of similar import to a word mentioned in paragraph (a), (b) or (c).

Civil penalty: 5,000 penalty units.

Defences

160B(2)    
For the purposes of subsection (1), it is a defence if:

(a) the licensee does not receive any of the following:

(i) indirect remuneration (apart from indirect remuneration that is rebated in full to the licensee ' s clients);

(ii) other gifts or benefits from a credit provider or a lessor that may reasonably be expected to influence the licensee; and

(b) in providing a credit service, the licensee operates free from direct or indirect restrictions relating to the credit contracts and consumer leases to which the service relates (except restrictions imposed on the licensee by this Act or by an Australian credit licence); and

(c) in providing a credit service, the licensee operates without any conflicts of interest that might:

(i) arise from the licensee ' s associations or relationships with credit providers and lessors; and

(ii) reasonably be expected to influence the licensee in providing the service; and

(d) neither of the following persons receives any indirect remuneration, gift, or benefit, covered by paragraph (a):

(i) the licensee ' s employer (if any);

(ii) any other person prescribed (whether by reference to a class of person or otherwise) by the regulations.

S 160B(2) amended by No 2 of 2020, s 3 and Sch 3[28] and [ 29], effective 18 February 2020.

160B(3)    
For the purposes of subsection (1), it is a defence if the representation uses any of the terms in the negative (for example, a representation that the licensee is not independent).