Commonwealth Consolidated Acts

NATIONAL CONSUMER CREDIT PROTECTION ACT 2009 - SECT 128

    A licensee must not:

  (a)   enter a credit contract with a consumer who will be the debtor under the contract; or

  (aa)   make an unconditional representation to a consumer that the licensee considers that the consumer is eligible to enter a credit contract with the licensee; or

  (b)   increase the credit limit of a credit contract with a consumer who is the debtor under the contract; or

  (ba)   make an unconditional representation to a consumer that the licensee considers that the credit limit of credit contract between the consumer and the licensee will be able to be increased;

on a day (the credit day ) unless the licensee has, within 90 days (or other period prescribed by the regulations) before the credit day:

  (c)   made an assessment that:

  (i)   is in accordance with section   129; and

  (ii)   covers the period in which the credit day occurs; and

  (d)   made the inquiries and verification in accordance with section   130.

Civil penalty:   5,000 penalty units.