National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-3 - LICENSEES THAT PROVIDE CREDIT ASSISTANCE IN RELATION TO CONSUMER LEASES  

Division 4 - Obligations of credit assistance providers before providing credit assistance for consumer leases  

SECTION 138   OBLIGATIONS OF CREDIT ASSISTANCE PROVIDERS BEFORE PROVIDING CREDIT ASSISTANCE FOR CONSUMER LEASES  

138(1)    
A licensee must not provide credit assistance to a consumer on a day (the assistance day ) by:

(a) suggesting that the consumer apply for a particular consumer lease with a particular lessor; or

(b) assisting the consumer to apply for a particular consumer lease with a particular lessor;

unless the licensee has, within 90 days (or other period prescribed by the regulations) before the assistance day:

(c) made a preliminary assessment that:

(i) is in accordance with subsection 139(1) ; and

(ii) covers the period proposed for the entering of the lease; and

(d) made the inquiries and verification in accordance with section 140 .

Civil penalty: 5,000 penalty units.

138(2)    
A licensee must not provide credit assistance to a consumer on a day (the assistance day ) by suggesting that the consumer remain in a particular consumer lease with a particular lessor unless the licensee has, within 90 days (or other period prescribed by the regulations) before the assistance day:

(a) made a preliminary assessment that:

(i) is in accordance with subsection 139(2) ; and

(ii) covers a period in which the assistance day occurs; and

(b) made the inquiries and verification in accordance with section 140 .

Civil penalty: 5,000 penalty units.