National Consumer Credit Protection Amendment (Financial Sector Reform) Regulations 2023 (F2023L00540)

Schedule 1   Amendments

Part 1   Main amendments

National Consumer Credit Protection Regulations 2010

2   After regulation 28HA

Insert:

28HB Obtaining and considering information to verify financial situation of consumers

Scope of this regulation - small amount credit contracts

(1) This regulation applies for the purposes of paragraph 117(1)(e) of the Act, to the extent that paragraph applies:

(a) for the purposes of paragraph 115(1)(d) of the Act; and

(b) in relation to credit assistance mentioned in subsection 115(1) of the Act that relates to a small amount credit contract.

(2) This regulation also applies for the purposes of paragraph 130(1)(e) of the Act, to the extent that paragraph applies in relation to a credit contract mentioned in section 128 of the Act that is a small amount credit contract.

Scope of this regulation - consumer leases for household goods

(3) This regulation also applies for the purposes of paragraph 140(1)(e) of the Act, to the extent that paragraph applies:

(a) for the purposes of paragraph 138(1)(d) of the Act; and

(b) in relation to credit assistance mentioned in subsection 138(1) of the Act that relates to a consumer lease for households goods.

(4) This regulation also applies for the purposes of paragraph 153(1)(e) of the Act, to the extent that paragraph applies in relation to a consumer lease mentioned in section 151 of the Act that is a consumer lease for households goods.

Required steps for licensees

(5) The licensee must take the steps set out in subregulation (6) and (if applicable) subregulation (7) to verify the consumer's financial situation.

(6) The licensee must ascertain whether the consumer is receiving a payment (a social security payment )under the Social Security Act 1991.

(7) If the licensee ascertains under subregulation (6) that the consumer is receiving a social security payment, then the licensee must obtain, and consider, the information contained in the following documents to verify the consumer's financial situation:

(a) an income statement for the consumer issued by Services Australia during the period of 21 days ending on the day on which the licensee considers the information contained in the income statement;

(b) a deduction statement for the consumer issued by Services Australia during the period of 21 days ending on the day on which the licensee considers the information contained in the deduction statement.