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NATIONAL CONSUMER CREDIT PROTECTION ACT 2009 - SECT 301D

ASIC may make product intervention orders

Making product intervention orders

             (1)  Subject to subsection (5), if ASIC is satisfied that:

                     (a)  a person is engaging, or is likely to engage, in credit activity in relation to a credit contract, mortgage, guarantee or consumer lease ( credit product ) or a proposed credit product; and

                     (b)  the credit product has resulted in, or will or is likely to result in, significant detriment to consumers;

ASIC may, in accordance with this Part, order that a specified person must not engage in specified conduct in relation to the product, either entirely or except in accordance with conditions specified in the order.

Note 1:       Section 301E specifies matters to be taken into account in considering whether a credit product has resulted in, or will or is likely to result in, significant detriment to consumers.

Note 2:       Section 301N also provides that product intervention orders may include requirements for notifying consumers.

             (2)  An order under subsection (1) is not a legislative instrument.

             (3)  Subject to subsection (5), if ASIC is satisfied that:

                     (a)  a person is engaging, or is likely to engage, in credit activity in relation to a class of credit products or proposed credit products; and

                     (b)  the class of products has resulted in, or will or is likely to result in, significant detriment to consumers;

ASIC may, in accordance with this Part and by legislative instrument, order that a person must not engage in specified conduct in relation to the class of products and consumers, either entirely or except in accordance with conditions specified in the order.

Note 1:       Section 301E specifies matters to be taken into account in considering whether a credit product has resulted in, or will or is likely to result in, significant detriment to consumers.

Note 2:       Section 301N also provides that product intervention orders may include requirements for notifying consumers.

Restrictions on product intervention orders

             (4)  A product intervention order must not specify any of the following f or subsection (1) or (3) :

                     (a)  a condition that a person satisfy a standard of training, or meet a professional standard, other than a standard prescribed for the person by or under this Act;

                     (b)  a condition that a person who is not required to hold an Australian credit licence become a member of an external dispute resolution scheme;

                     (c)  a condition related to a person's remuneration, other than a condition related to:

                              (i)  so much of the person's remuneration as is conditional on the achievement of objectives directly related to the credit product; or

                             (ii)  a fee, charge or other consideration paid or payable to the person by a consumer.

             (5)  Conduct covered by a product intervention order must be limited to conduct in relation to a consumer.



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