Commonwealth Consolidated Regulations

NATIONAL CONSUMER CREDIT PROTECTION REGULATIONS 2010

- made under the National Consumer Credit Protection Act 2009

TABLE OF PROVISIONS

            

CHAPTER 1--Preliminary
            

   1.      Name of Regulations  
   3.      Definitions  
   4.      Meaning of associate  
   4A.     Debt management services  
   4B.     Meaning of debt management assistance  
   4C.     Meaning of credit reporting assistance  
   4D.     Small amount credit contracts--credit limit increase to cover fees  
   5.      Prescribed orders  
   6.      Forms  
            

CHAPTER 2--Licensing of persons who engage in credit activities
            

   PART 2-1--AUSTRALIAN CREDIT LICENCES

   7.      How to get an Australian credit licence--requirements for a foreign entity to appoint local agent  
   7A.     When licence may be granted--continuous credit activity  
   8.      How to get an Australian credit licence--streamlined process for particular classes of applicants  
   9.      The conditions on the licence  
   9AA.    The conditions on the licence--special purpose funding entity  
   9AB.    Conditions for licensee--referrals  
   9A.     Conditions for unlicensed carried over instrument lender--credit register  
   10.     Obligations of licensees--alternative dispute resolution systems  
   11.     Obligations of licensees--foreign entity must continue to have local agent  
   11A.    Obligations of licensees--cooperation with AFCA  
   12.     Obligations of licensees--requirements for compensation arrangements  
   12A.    Obligations of licensees--breaches of certain civil penalty provisions not required to be reported to ASIC  
   12B.    Obligations of licensees--breaches of certain key requirements not required to be reported to ASIC  
   13.     Obligations of licensees--offence in relation to failure to cite licence number in documents  
   14.     Obligations of licensees--who compliance certificate must be signed by  
   15.     When a licence can be suspended, cancelled or varied--grounds to suspend or cancel licence  

   PART 2-2--AUTHORISATION OF CREDIT REPRESENTATIVES

   16.     Sub - authorisation by body corporate  

   PART 2-3--FINANCIAL RECORDS, TRUST ACCOUNTS AND AUDIT REPORTS

   17.     Information and matters to be contained in a trust account audit report  
   18.     Eligibility of auditors to prepare trust account audit report  
   19.     Auditors who prepare audit reports  

   PART 2-4--EXEMPTIONS AND MODIFICATIONS

           Division 1--Exemptions

              Subdivision 1.1--Persons exempt from being licensed

   20.     Persons exempt from requiring a licence--general  
   21.     Persons exempt from requiring a licence--debt collectors  
   22.     Persons exempt from requiring a licence--third parties  
   23.     Persons exempt from requiring a licence--suppliers of goods or services  
   23A.    Persons exempt from requiring a licence--suppliers of goods or services with branded or co - branded credit card  
   23B.    Persons exempt from requiring a licence--fund raising special purpose entity  
   23C.    Persons exempt from requiring a licence--securitisation entity  
   23D.    Persons exempt from requiring a licence--employment agencies  

              Subdivision 1.2--Activities exempt from being credit activities under the Act

   24.     Activities exempt from being credit activities  

           Division 2--Modifications

   25.     Activities exempt from requiring a licence  
   25A.    Modifications--credit representatives  
   25B.    Modification--meaning of linked credit provider or linked lessor for regulation 23  
   25C.    Modification--meaning of linked credit provider for regulation 23A  
   25D.    Modification--meaning of services for regulations 23 and 23A  
   25E.    Modifications--unlicensed carried over instrument lender  
   25F.    Modifications--ADI in relation to carried over instrument  
   25G.    Modifications--special purpose funding entity  
   25H.    Modifications--temporary staff  
   25I.    Modifications--locums  
   25J.    Modification--exempted persons  
   25K.    Modification--credit card contracts  
   25L.    Modification--assignees of credit providers, lessors, mortgagees and beneficiaries of a guarantee  
   25M.    Modification--credit card provided before 1 July 2012  
            

CHAPTER 3--Responsible lending conduct
            

   PART 3-1--PRELIMINARY

   26.     Definitions  

   PART 3-2--REQUIREMENTS ABOUT CREDIT GUIDES

   26A.    Credit guide of licensee--to include further information  
   26B.    Credit guide of credit provider or lessor--information about mortgage managers and product designers  
   27.     Credit guide of licensees--when information about fees, charges and indirect remuneration is not required  
   27A.    Credit guide of credit representatives--to include further information  
   27B.    Credit guide of credit representatives--when information about fees, charges and indirect remuneration not required  
   28.     Credit guide of credit representatives--contact details for the AFCA scheme  
   28B.    Credit guide--circumstances where not required to update information  

   PART 3-3--REQUIREMENTS ABOUT QUOTES

   28C.    Circumstances where no quote required  
   28D.    Quote for providing credit assistance--licensee to give information about fees and charges  

   PART 3-4--REQUIREMENTS ABOUT PROPOSAL DISCLOSURE DOCUMENTS

   28E.    Proposal disclosure document--information about fees and charges  
   28F.    Proposal disclosure document--when information about fees and charges not required  
   28G.    Proposal disclosure document--information about indirect remuneration  
   28H.    Proposal disclosure documents--when information about indirect remuneration not required  

   PART 3-5--OTHER OBLIGATIONS

   28HA.   Reverse mortgages--credit assistance providers and credit providers to make reasonable inquiries  
   28HB.   Obtaining and considering information to verify financial situation of consumers  
   28J.    Obligations of credit providers before entering credit contracts or increasing credit limits  
   28JA.   Inquiries about credit limit  
   28L.    Manner of giving disclosure documents  
   28LA.   Standard home loans  
   28LB.   Key Facts Sheets for standard home loans  
   28LBA.  Key Facts Sheets for credit card contracts  
   28LBB.  Application forms in electronic form  
   28LBC.  Circumstances in which application form may include out - of - date Key Facts Sheet  
   28LBD.  Circumstances in which up - to - date information can be provided otherwise than in Key Facts Sheet  
   28LBE.  Meaning of credit limit increase invitation  
   28LBF.  Licensee to notify consumer of use of credit card in excess of credit limit  
   28LBG.  Fees charges and higher rates of interest  
   28LBH.  Records of elections and withdrawals to be kept  
   28LBI.  Agreement to apply payment against particular amount owed  
   28LC.   Reverse mortgages--presumption of unsuitability of credit contract if certain loan to value ratios exist  
   28LCA.  Small amount credit contracts--income requirements  
   28LCB.  Consumer leases for household goods--income requirements  
   28LCC.  Constrained documents and constrained information  
   28LCE.  Authorisation for deduction  
   28LCF.  Unsuitable credit contracts--prescribed circumstances  
   28LD.   Reverse mortgages--projections of home equity  
   28LE.   Reverse mortgage information statement  

   PART 3-6--MODIFICATIONS AND EXEMPTIONS

   28M.    Modifications  
   28N.    Exemption--requirement to provide disclosure documents  
   28P.    Circumstances where credit guide not required  
   28Q.    Exemption--credit assistance provider with shared responsibility for credit contract  
   28R.    Exemption--intermediary's requirement to provide proposal disclosure document  
   28RB.   Exemption relating to small businesses  

   PART 3-8--LICENSEES SUPPLYING CREDIT INFORMATION TO CREDIT REPORTING BODIES ETC.

   28TA.   Ongoing supplies of mandatory credit information  
   28TB.   When protected information must not be on - disclosed  
   28TC.   Reports about initial bulk supplies of credit information--information to be given by licensee  
   28TD.   Reports about initial bulk supplies of credit information--information to be given by credit reporting body  

   PART 3-9--MORTGAGE BROKERS AND MORTGAGE INTERMEDIARIES

           Division 1--Interpretation

   28V.    References to providing credit services to a consumer  
   28VA.   Meaning of amount of credit  

           Division 2--What is conflicted remuneration?

   28VB.   Monetary benefit given in certain circumstances not conflicted remuneration  
   28VC.   Benefits to which the drawdown cap applies  
   28VD.   Working out the maximum drawdown net of offset for a credit contract  
   28VE.   Volume - based benefits  
   28VF.   Campaign - based benefits  
   28VG.   Clawback requirements  
   28VH.   Non - monetary benefit given in certain circumstances not conflicted remuneration  

           Division 3--Circumstances in which conflicted remuneration must not be accepted

   28VI.   Circumstances in which a licensee must not accept conflicted remuneration  
   28VJ.   Circumstances in which a credit representative must not accept conflicted remuneration  

           Division 4--Circumstances in which conflicted remuneration must not be given

   28VK.   Circumstances in which an employer must not give conflicted remuneration  
   28VL.   Circumstances in which a credit provider must not give conflicted remuneration  
   28VM.   Circumstances in which a mortgage intermediary must not give conflicted remuneration  
            

CHAPTER 4--Administration--registers relating to credit activities
            

   29.     Credit registers--licensees, credit representatives and registered persons  
   30.     Credit registers--persons against whom banning order or disqualification order is made  
   30A.    Credit register--unlicensed carried over instrument lender  
            

CHAPTER 5--Compliance and enforcement
            

   31.     Investigations--distribution of report  
   32.     Examination of person--form of notice requiring assistance and appearance for examination  
   33.     Inspection of books and audit information - gathering powers--evidence of authority  
   34.     Hearings--form of summons to appear before ASIC  
   35.     Miscellaneous provisions--allowances and expenses  
            

CHAPTER 6--Miscellaneous
            

   PART 6-1--COURT PROCEEDINGS

   36.     Where proceedings may be brought  

   PART 6-2--INFRINGEMENT NOTICES

   37.     Prescribed offences  
   38.     Prescribed civil penalty provisions  
   39.     Prescribed key requirements  

   PART 6-2A----AVOIDANCE SCHEMES

   40.     Avoidance purposes relating to contracts  
   41.     Avoidance purposes relating to product intervention orders  

   PART 6-3--APPLICATION, SAVING AND TRANSITIONAL PROVISIONS

   49A.    Transitional--Schedule 1 to National Consumer Credit Protection Amendment Regulation 2012 (No. 1)  
   49B.    Transitional--Schedule 2 to National Consumer Credit Protection Amendment Regulation 2012 (No. 1)  
   49C.    Transitional--Part 1 of Schedule 1 to the Treasury Laws Amendment (Putting Consumers First--Establishment of the Australian Financial Complaints Authority) Regulations 2018  
   49D.    Transitional--Part 2 of Schedule 1 to the Treasury Laws Amendment (Putting Consumers First--Establishment of the Australian Financial Complaints Authority) Regulations 2018  
   49E.    Transitional--Part 3 of Schedule 1 to the Treasury Laws Amendment (Putting Consumers First--Establishment of the Australian Financial Complaints Authority) Regulations 2018  
   49F.    Application--offences  
   49G.    Application--civil penalty provisions  
   49H.    Transitional--Schedule 1 to the Treasury Laws Amendment (AFCA Cooperation) Regulations 2019  
   49J.    Application and transitional--Schedule 1 to the National Consumer Credit Protection Amendment (Debt Management Services) Regulations 2021  
   49K.    Application--Schedule 1 to the National Consumer Credit Protection Amendment (Financial Sector Reform) Regulations 2023  
            

CHAPTER 7--Matters in relation to the National Credit Code
            

   PART 7-1--EXEMPTIONS, DECLARATIONS AND OTHER MATTERS

   50.     Continued application of Part 12 of the Code and interpretation provisions  
   50A.    Exemption for short term credit  
   51.     Exempt credit--maximum account charges  
   52.     Additional exempt credit  
   53.     GIO Finance Limited's No Interest Loan Scheme--exemption from Code  
   54.     Rental Purchase Plan--exemption from certain provisions of Code  
   55.     Partnership loans--exemption from certain provisions of Code  
   56.     Student loans--exemption from certain provisions of Code  
   57.     Loans for conservation of heritage items--exemption from Code  
   58.     ADIs--exemption from Code  
   59.     Estate administrators--exemption from certain provisions of Code  
   60.     Credit under Aged Care Act 1997-- exemption from certain provisions of Code  
   61.     Firefighter's Benefit Fund of WA Incorporated--exemption from certain provisions of Code  
   62.     Charge card contracts--exemption of certain contracts from Code  
   63.     Credit providers providing credit to directors--exemption from certain provisions of Code  
   64.     Mortgages--exemptions from Code  
   65.     Guarantees--exemption from Code  
   65A.    Indigenous Business Australia--exemption from certain provisions of Code  
   65C.    Residential investment property loans--exemption from Code  
   66.     Deemed mortgages for goods lease with option to purchase  
   67.     Prescribed person in relation to a declaration  
   68.     Declaration of purposes for which credit provided  
   69.     Direct debit default notices--exemption for credit providers  
   69C.    Exemption--requirement to disclose information about the AFCA scheme  
   69D.    Exemption--requirement to give notice of direct debit default  

   PART 7-2--CREDIT CONTRACTS

   70.     Statement about debtor's statutory rights and obligations  
   71.     Comparison rate  
   72.     Pre - contractual statement  
   72A.    Precontractual disclosure--requirements for giving documents other than personally  
   72B.    Precontractual disclosure--requirements for giving documents by means involving electronic communication  
   72C.    Precontractual disclosure--making documents available for retrieval on an electronic document retrieval system  
   73.     Additional disclosures about insurance financed by contract  
   74.     Additional disclosures about credit contracts to be signed by debtor  
   74A.    Reverse mortgages--disclosure about credit contract not including tenancy protection provision  
   75.     Deduction of amount for interest charges  
   76.     Calculation of unpaid daily balances  
   77.     Early debit or payment of interest charges  
   78.     Interest charges in relation to residential investment property  
   79.     When statement of account not required  

   PART 7-2A----PROHIBITED CREDIT FEES AND CHARGES

   79A.    Termination fees for certain credit contracts  
   79AE.   Small amount credit contracts (fees and charges)--prescribed persons  
   79AB.   Credit provider or prescribed person must not require or accept payment of fee or charge in relation to small amount credit contract etc  
   79AC.   Prohibition relating to annual cost rate of credit contracts--later increases of annual percentage rate etc  
   79B.    Minimum Repayment Warning  

   PART 7-2B----ADDITIONAL RULES IN RELATION TO SMALL AMOUNT CREDIT CONTRACTS

   79C.    Default in payment by direct debit under small amount credit contract  

   PART 7-3--RELATED MORTGAGES AND GUARANTEES

   80.     Mortgage arising from certain home ownership schemes--exemption from subsection 50(1) of the Code  
   81.     Form of guarantees  
   82.     Explanation about guarantor's rights and obligations  

   PART 7-4--CHANGES TO OBLIGATIONS UNDER CREDIT CONTRACTS, MORTGAGES AND GUARANTEES

   83.     Information about increases in the amount of credit  

   PART 7-5--ENDING AND ENFORCING CREDIT CONTRACTS, MORTGAGES AND GUARANTEES

   84.     Information after surrender of goods  
   84A.    Market value of reverse mortgaged property  
   85.     Information to be contained in direct debit default notice  
   86.     Information to be contained in default notice  
   87.     Consent to enter premises  
   88.     Statement about mortgagor's rights and obligations  
   89.     Information about proceeds of sale of mortgaged goods  

   PART 7-6--RELATED SALE CONTRACTS

   90.     Rate of interest on damages  
   91.     Informing debtor of rights  
   92.     Rebate of consideration  

   PART 7-7--RELATED INSURANCE CONTRACTS

   93.     Particulars of insurance entered into by credit provider  
   94.     Proportionate rebate of consumer credit insurance premium  
   95.     Notice of right to cancel mortgaged property insurance  
   96.     Proportionate rebate of premium for insurance over mortgaged property  

   PART 7-8--COMPARISON RATES

   97.     Relevant comparison rate where annual percentage rate stated  
   98.     Information about whether comparison rate relates to secured loan  
   99.     Warnings about comparison rate  
   100.    Calculation of comparison rates  

   PART 7-9--CONSUMER LEASES

   102.    Consumer lease excluded from application of Part 11 of the Code  
   103.    Prescribed person in relation to declarations  
   104.    Declaration about purpose of lease  
   104A.   Disclosure of information in consumer leases for household goods  
   105.    Explanation about rights and obligations of consumer lessees  
   105AA.  Base price of goods  
   105A.   Information to be contained in statement of account  
   105B.   Information to be contained in statement of account about amount owing and other matters  
   105C.   Information to be contained in end of lease statement  
   105D.   Circumstances in which lessor is not required to provide end of lease statement  
   105E.   Information to be contained in written notice about change by agreement to consumer lease  
   105G.   Information to be contained in statement of amount payable on termination of consumer lease  
   105J.   Information to be contained in one - off notice about direct debit default  
   105K.   Information to be contained in default notice  
   105L.   Consent to enter residential property to take possession of goods  

   PART 7-10----MISCELLANEOUS

   106.    Tolerances relating to disclosures  
   107.    Tolerances relating to amounts payable etc  
   108.    Additional assumptions relating to disclosures  
   109.    Contracts linked to offset accounts  
   110.    Requirements for print or type  
   110A.   Reverse mortgages--manner of keeping nominations or revocations  
   111.    Notices  

   PART 7-11----SAVING AND TRANSITIONAL PROVISIONS

           Division 1--Reliance on State and Territory Consumer Credit Codes

   112.    References in documents to Consumer Credit Code of a State or Territory  

           Division 2--Transitional provisions for the Treasury Laws Amendment (Miscellaneous Amendments) Regulations 2019

   113.    Compliance with subregulation 28LCE(2) and Schedule 10  

           Division 4--Transitional provisions for the Treasury Laws Amendment (Modernising Business Communications and Other Measures) Act 2023

   115.    Transitional arrangements  
           SCHEDULE 1 Forms
           SCHEDULE 2 Modifications--carried over instruments
           SCHEDULE 3 Modifications--special purpose funding entity
           SCHEDULE 4 Modifications--responsible lending conduct
           SCHEDULE 5 Key Facts Sheets for standard home loans
           SCHEDULE 5A Reverse mortgage information statement
           SCHEDULE 6 Key Facts Sheets for credit card contracts
           SCHEDULE 10 Employer authorisation--prescribed form of statement