National Consumer Credit Protection Act 2009

CHAPTER 6 - COMPLIANCE AND ENFORCEMENT  

PART 6-7A - PRODUCT INTERVENTION ORDERS  

Division 2 - Product intervention orders  

SECTION 301D   ASIC MAY MAKE PRODUCT INTERVENTION ORDERS  

Making product intervention orders

301D(1)    
Subject to subsection (5) , if ASIC is satisfied that:

(a)    a person is engaging, or is likely to engage, in credit activity in relation to a credit contract, mortgage, guarantee or consumer lease ( credit product ) or a proposed credit product; and

(b)    the credit product has resulted in, or will or is likely to result in, significant detriment to consumers;

ASIC may, in accordance with this Part, order that a specified person must not engage in specified conduct in relation to the product, either entirely or except in accordance with conditions specified in the order.

Note 1:

Section 301E specifies matters to be taken into account in considering whether a credit product has resulted in, or will or is likely to result in, significant detriment to consumers.

Note 2:

Section 301N also provides that product intervention orders may include requirements for notifying consumers.

301D(2)    
An order under subsection (1) is not a legislative instrument.

301D(3)    
Subject to subsection (5) , if ASIC is satisfied that:

(a)    a person is engaging, or is likely to engage, in credit activity in relation to a class of credit products or proposed credit products; and

(b)    the class of products has resulted in, or will or is likely to result in, significant detriment to consumers;

ASIC may, in accordance with this Part and by legislative instrument, order that a person must not engage in specified conduct in relation to the class of products and consumers, either entirely or except in accordance with conditions specified in the order.

Note 1:

Section 301E specifies matters to be taken into account in considering whether a credit product has resulted in, or will or is likely to result in, significant detriment to consumers.

Note 2:

Section 301N also provides that product intervention orders may include requirements for notifying consumers.

Restrictions on product intervention orders

301D(4)    
A product intervention order must not specify any of the following for subsection (1) or (3) :

(a)    a condition that a person satisfy a standard of training, or meet a professional standard, other than a standard prescribed for the person by or under this Act;

(b)    a condition that a person who is not required to hold an Australian credit licence become a member of an external dispute resolution scheme;

(c)    

a condition related to a person ' s remuneration, other than a condition related to:

(i) so much of the person ' s remuneration as is conditional on the achievement of objectives directly related to the credit product; or

(ii) a fee, charge or other consideration paid or payable to the person by a consumer.

301D(5)    
Conduct covered by a product intervention order must be limited to conduct in relation to a consumer.