Written documentation required in relation to the assessment for a consumer lease for household goods
156C Written documentation required in relation to the assessment for a consumer lease for household goods
If, in an assessment made for the purposes of paragraph 151(c), the licensee assesses that a consumer lease for household goods is not unsuitable for a consumer, before:
entering into the consumer lease with the consumer; or
making an unconditional representation to the consumer that the licensee considers that the consumer is eligible to enter a consumer lease with the licensee;
the licensee must document in writing and in accordance with any requirements determined by ASIC under subsection (2):
the assessment; and
the inquiries and verification made for the purposes of paragraph 151(d) in relation to that assessment.
Civil penalty: 5,000 penalty units.
ASIC may, by legislative instrument, determine the form in which the matters in paragraphs (1)(c) and (d) 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.
27 Part 6 of the National Credit Code (at the end of the heading)
Add “and lessors”.
28 After subsection 111(2) of the National Credit Code
Insert:
For the purposes of this Division, a key requirement in connection with a consumer lease is any one of the requirements of this Code contained in the following provisions:
subsection 174(1A);
subsection 175AA(1);
subsection 175AA(2);
section 179VA.
29 Subsections 112(1) and (2) of the National Credit Code
Repeal the subsections, substitute:
An application for an order under this Division may be made by:
a party to a credit contract or consumer lease; or
a guarantor in relation to a credit contract; or
ASIC.
A debtor, lessee or guarantor may not make an application for an order under this Division in respect of a contravention in connection with a contract or consumer lease if the contravention is or has been subject to an application for an order made by the credit provider, lessor or ASIC anywhere in Australia under this Code.
30 Subsection 113(1) of the National Credit Code
Repeal the subsection (not including the heading), substitute:
The court must, on an application being made, by order declare whether or not the credit provider or lessor has contravened a key requirement in connection with the credit contract or contracts concerned, or consumer lease or leases concerned.
31 Subsection 113(2) of the National Credit Code
After “credit provider” (wherever occurring), insert “or lessor”.
32 Subsection 113(3) of the National Credit Code
Repeal the subsection, substitute:
Prudential standing
The court, in considering the imposition of a penalty, must have regard primarily to the prudential standing of:
any credit provider or lessor concerned; or
any subsidiary of the credit provider or lessor (within the meaning of the Corporations Act 2001);
if the credit provider, lessor or subsidiary takes deposits or is a borrowing corporation (within the meaning of that Act). However, the court is to have regard to that prudential standing only if the credit provider or lessor requests the court to do so.
33 Paragraph 113(4)(a) of the National Credit Code
Before “the conduct”, insert “in the case of a credit contract—”.
34 After paragraph 113(4)(a) of the National Credit Code
Insert:
in the case of a consumer lease—the conduct of the lessor and lessee before and after the consumer lease was entered into;
35 Paragraph 113(4)(c) of the National Credit Code
After “debtor”, insert “or lessee”.
36 Paragraphs 113(4)(d), (e) and (f) of the National Credit Code
After “credit provider”, insert “or lessor”.
37 Paragraph 113(4)(g) of the National Credit Code
Repeal the paragraph, substitute:
any action taken by the credit provider or lessor to remedy the contravention or compensate the debtor or lessee or to prevent further contraventions;
38 After section 114 of the National Credit Code
Insert:
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