Treasury Laws Amendment (Banking Measures No. 1) Act 2018 (9 of 2018)

Schedule 5   Credit card reforms

Part 4   Ending credit card contracts

National Consumer Credit Protection Act 2009

23   Before Part 3-2C

Insert:

Division 8 - Ending credit card contracts

133BT Credit provider not to enter into credit card contract unless it allows for termination of contracts

Requirement

(1) A licensee must not enter into, or offer to enter into, a credit card contract under which the licensee would be the credit provider, if the consumer who would be the debtor under the contract would not have a credit card termination entitlement 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.

Meaning of credit card termination entitlement

(3) A consumer who is the debtor under a credit card contract has a credit card termination entitlement under the contract if the consumer is entitled, under the contract, to terminate the credit card contract.

133BU Credit provider to provide online capacity to request termination of credit card contract

When this section applies

(1) This section applies if a consumer who is the debtor under a credit card contract has a credit card termination entitlement under the contract on a day (the online termination day ).

Requirement

(2) The licensee who is the credit provider under the credit card contract must establish and maintain a website that satisfies all of the following paragraphs:

(a) the website tells the consumer that the consumer may use the website to request to terminate the credit card contract;

(b) the website:

(i) tells the consumer what information the consumer will need to enter in order to request to terminate the credit card contract; and

(ii) provides the consumer with instructions on how to request to terminate the credit card contract;

(c) if the consumer enters the information and follows those instructions, the consumer can use the website to request to terminate the credit card contract;

(d) the website is available on the online termination day.

Civil penalty: 2,000 penalty units.

Defence

(3) For the purposes of subsection (2), it is a defence if the website is reasonably unavailable on the online termination day.

133BV Credit provider not to suggest the consumer not terminate the credit card contract

When this section applies

(1) This section applies if:

(a) a consumer who is the debtor under a credit card contract has a credit card termination entitlement under the contract; and

(b) the consumer has requested to terminate the credit card contract.

Requirement

(2) The licensee who is the credit provider under the credit card contract must not suggest that the consumer remain in the credit card contract.

Civil penalty: 2,000 penalty units.

Offence

(3) A person commits an offence if:

(a) the person is subject to a requirement under subsection (2); and

(b) the person engages in conduct; and

(c) the conduct contravenes the requirement.

Criminal penalty: 50 penalty units.

133BW Credit provider to give effect to request to terminate credit card contract

When this section applies

(1) This section applies if:

(a) a consumer who is the debtor under a credit card contract has a credit card termination entitlement under the contract; and

(b) the consumer has requested to terminate the consumer's credit card contract.

Requirement

(2) The licensee who is the credit provider under the credit card contract must take reasonable steps to ensure that the request is given effect to as soon as practicable.

Civil penalty: 2,000 penalty units.

Offence

(3) A person commits an offence if:

(a) the person is subject to a requirement under subsection (2); and

(b) the person engages in conduct; and

(c) the conduct contravenes the requirement.

Criminal penalty: 50 penalty units.