Financial Sector Reform Act 2022 (87 of 2022)
Schedule 4 Consumer credit reforms
Part 2 Consumer leases
National Consumer Credit Protection Act 2009
53 At the end of Division 10 of Part 11 of the National Credit Code
Add:
179VA Canvassing of consumer leases for household goods
Requirement
(1) A lessor must not make, or arrange for the making of, an unsolicited communication to consumer if:
(a) the communication is for the purpose of inducing the consumer to apply for, or obtain, a consumer lease for household goods; and
(b) when the consumer receives the communication, the consumer is in the physical presence of the lessor or the person making the communication; and
(c) when the consumer receives the communication, the consumer is in:
(i) a public place; or
(ii) a place that is not a business premises of a business of the lessor; or
(iii) a stall that is being used by the lessor or by the person making the communication; or
(iv) an aircraft, vehicle or vessel that is being used by the lessor or by the person making the communication.
Offence
(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: 100 penalty units.
Strict liability offence
(3) A person commits an offence of strict liability if the person contravenes subsection (1).
Criminal penalty: 10 penalty units.
Loss of certain amounts
(4) If:
(a) a lessor makes, or arranges for the making of, an unsolicited communication to a consumer in contravention of subsection (1); and
(b) the lessor enters into a consumer lease for household goods with that consumer within 30 days after that unsolicited communication is made;
then:
(c) the consumer 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
(d) the consumer may recover as a debt due to the consumer any amounts paid by the consumer that, in accordance with paragraph (c) of this subsection, the consumer is not liable to pay (or is taken never to have been liable to pay).
179VB Using postal, telegraphic, telephonic or other like services to enter into a consumer lease for an indefinite period
Requirement
(1) A lessor must not use postal, telegraphic, telephonic or other like services (within the meaning of paragraph 51(v) of the Constitution) to enter into a consumer lease for an indefinite period if the lessor is not a constitutional corporation.
Civil penalty: 5,000 penalty units.
Offence
(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: 100 penalty units.
179VC Entering into a consumer lease for an indefinite period in the course of constitutional trade and commerce
Requirement
(1) A lessor must not, in the course of constitutional trade and commerce, enter into a consumer lease for an indefinite period unless the lessor is a constitutional corporation.
Civil penalty: 5,000 penalty units.
Offence
(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: 100 penalty units.