Consumer Credit Legislation Amendment (Enhancements) Act 2012 (130 of 2012)

Schedule 4   Caps on costs etc. for credit contracts

National Consumer Credit Protection Act 2009

8   After section 24 of the National Credit Code

Insert:

24A Offences related to prohibited monetary obligations - credit assistance providers

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

(a) suggesting that the consumer apply for a particular small amount credit contract with a particular credit provider; or

(b) assisting the consumer to apply for a particular small amount credit contract with a particular credit provider;

if the person knows, or is reckless as to whether, the contract will contravene subsection 23A(1).

Criminal penalty: 50 penalty units.

(2) If a person provides credit assistance to a consumer that is prohibited by subsection (1):

(a) the consumer is not liable (and is taken never to have been liable) to pay any fees or charges to the person in relation to:

(i) the credit assistance; or

(ii) any other services provided by the person in connection with the credit assistance; and

(b) the consumer may recover as a debt due to the consumer the amount of any such fees or charges paid by the consumer to the person.