Consumer Credit Legislation Amendment (Enhancements) Act 2012 (130 of 2012)
Schedule 3 Short-term and small amount credit contracts
National Consumer Credit Protection Act 2009
13 After Part 3-2B
Insert:
Part 3-2C - Licensees that are credit providers under credit contracts: additional rules relating to short-term and small amount credit contracts
Division 1 - Introduction
133C Guide to this Part
This Part has rules that apply to licensees who are, or are to be, credit providers under short-term credit contracts and small amount credit contracts. It applies in addition to the general rules in Part 3-2.
Division 2 prohibits a licensee from entering into, or increasing the credit limit of, short-term credit contracts. It also imposes requirements on a licensee who makes representations about entering into small amount credit contracts and prohibits a licensee from entering into, or offering to enter into, small amount credit contracts in certain circumstances.
Division 2 - Short-term and small amount credit contracts
133CA Prohibition on entering, or increasing the credit limit of, short-term credit contracts
Prohibition
(1) A licensee must not:
(a) enter a short-term credit contract with a consumer who will be the debtor under the contract; or
(b) increase the credit limit of a short-term credit contract with a consumer who is the debtor under the contract.
Civil penalty: 2,000 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: 50 penalty units.
133CB Licensee who makes representations about small amount credit contracts must display information etc.
Requirement
(1) If a licensee represents that the licensee enters into, or is able to enter into, small amount credit contracts with consumers under which the licensee would be the credit provider:
(a) the licensee must display information in accordance with the regulations at a place prescribed by the regulations; and
(b) the licensee must ensure that any website of the licensee complies with the requirements prescribed by the regulations.
Civil penalty: 2,000 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: 50 penalty units.
133CC Licensee must not enter into a small amount credit contract if the repayments do not meet the prescribed requirements
Requirement
(1) A licensee must not enter into, or offer to enter into, a small amount credit contract with a consumer who will be the debtor under the contract if:
(a) the consumer is included in a class of consumers prescribed by the regulations; and
(b) the repayments that would be required under the contract would not meet the requirements prescribed by the regulations.
Civil penalty: 2,000 penalty units.
Note: For example, the regulations may provide that the amount of a repayment must not exceed a specified percentage of the consumer's income.
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: 50 penalty units.
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