Licensee who makes representations in relation to small amount credit contracts must display and give information
133CB Licensee who makes representations in relation to small amount credit contracts must display and give information
Requirement
If a licensee represents that the licensee enters into, or is able to enter into, small amount credit contracts with consumers under which the licensee would be the credit provider, the licensee must:
display information; and
give information to consumers;
in accordance with any determination made by ASIC under subsection (2).
Civil penalty: 5,000 penalty units.
ASIC may, by legislative instrument, determine one or more of the following matters relating to licensees that make representations described in subsection (1):
the information that the licensees must display;
how the licensees must display the information;
when the licensees must display the information;
the information that the licensees must give to consumers;
how the licensees must give the information to consumers;
when the licensees must give the information to consumers.
In making a determination under subsection (2), ASIC must take into account the risks associated with small amount credit contracts and the alternatives that may be available to consumers.
Offence
A person commits an offence if:
the person is subject to a requirement under subsection (1); and
the person engages in conduct; and
the conduct contravenes the requirement.
Criminal penalty: 50 penalty units.
12 Subsection 133CC(1)
Repeal the subsection (not including the heading), substitute:
A licensee must not enter into, or offer to enter into, a small amount credit contract with a consumer who will be the debtor under the contract if the repayments that would be required under the contract would not meet the requirements prescribed by the regulations.
Civil penalty: 5,000 penalty units.
For example, the regulations may provide that the amount of a repayment must not exceed a specified percentage of the consumer’s income.
13 At the end of section 133CC
Add:
Loss of certain fees and charges
If a licensee enters into a small amount credit contract in contravention of subsection (1), then:
the consumer is not liable (and is taken never to have been liable) to pay a fee or charge of a kind mentioned in paragraph 31A(1)(a), (b), (c) or (d) of the National Credit Code under that small amount credit contract (whether or not the liability is imposed consistently with the National Credit Code); and
the consumer may recover as a debt due to the consumer any amounts paid by the consumer that, in accordance with paragraph (a) of this subsection, the consumer is not liable to pay (or is taken never to have been liable to pay).
14 At the end of Division 2 of Part 3‑2C
Add:
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