National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-1 - LICENSEES THAT PROVIDE CREDIT ASSISTANCE IN RELATION TO CREDIT CONTRACTS  

Division 7 - Special rules for short-term and small amount credit contracts  

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SECTION 124A   PROHIBITION ON PROVIDING CREDIT ASSISTANCE IN RELATION TO SHORT-TERM CREDIT CONTRACTS  

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Prohibition

124A(1)    
A licensee must not provide credit assistance to a consumer by:


(a) suggesting that the consumer apply, or assisting the consumer to apply, for a short-term credit contract; or


(b) suggesting that the consumer apply, or assisting the consumer to apply, for an increase to the credit limit of a particular short-term credit contract with a particular credit provider.

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Civil penalty: 5,000 penalty units.

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Offence

124A(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.


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