Written documentation required in relation to the preliminary assessment for a consumer lease for household goods
147B Written documentation required in relation to the preliminary assessment for a consumer lease for household goods
If, in a preliminary assessment made for the purposes of paragraph 138(1)(c) or (2)(a), the licensee assesses that a consumer lease for household goods is not unsuitable for a consumer, before providing credit assistance to the consumer by:
suggesting that the consumer apply for a particular consumer lease with a particular lessor; or
assisting the consumer to apply for a particular consumer lease with a particular lessor; or
suggesting that the consumer remain in a particular consumer lease with a particular lessor;
the licensee must document in writing and in accordance with any requirements determined by ASIC under subsection (2):
the preliminary assessment; and
the inquiries and verification made for the purposes of paragraph 138(1)(d) or (2)(b) in relation to that preliminary assessment.
Civil penalty: 5,000 penalty units.
ASIC may, by legislative instrument, determine the form in which the matters in paragraphs (1)(d) and (e) are to be documented in writing.
Before making a determination under subsection (2), ASIC must:
consult the Information Commissioner in relation to matters that relate to the privacy functions (within the meaning of the Australian Information Commissioner Act 2010); and
have regard to any submissions made by the Information Commissioner because of that consultation.
24 At the end of section 148
Add:
Division 5 prohibits a licensee from entering into, or offering to enter into, a consumer lease for household goods in certain circumstances and imposes requirements on a licensee who makes representations about consumer leases for household goods. It also imposes requirements in relation to recording an assessment that a consumer lease is not unsuitable.
25 After subsection 153(1)
Insert:
If:
the consumer lease is a consumer lease for household goods; and
the consumer holds (whether alone or jointly with another person) an account with an ADI into which income payable to the consumer is credited;
the licensee must, in verifying the consumer’s financial situation for the purposes of paragraph 151(d), obtain and consider information about each transaction on the account, and the balances of the account, during at least the immediately preceding period of 90 days.
Subsection (1A) does not limit paragraph (1)(c).
26 At the end of Part 3‑4
Add:
This Act’s bill:Explanatory memorandumSecond reading speech
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