Obligations of credit assistance providers before providing credit assistance for credit contracts
115 Obligations of credit assistance providers before providing credit assistance for credit contracts
A licensee must not provide credit assistance to a consumer on a day (the assistance day) by:
suggesting that the consumer apply, or assisting the consumer to apply, for a particular credit contract with a particular credit provider; or
suggesting that the consumer apply, or assisting the consumer to apply, for an increase to the credit limit of a particular credit contract with a particular credit provider;
unless the licensee has, within 90 days (or other period prescribed by the regulations) before the assistance day:
made a preliminary assessment that:
is in accordance with subsection 116(1); and
covers the period proposed for the entering of the contract or the increase of the credit limit; and
made the inquiries and verification in accordance with section 117.
Civil penalty: 5,000 penalty units.
A licensee must not provide credit assistance to a consumer on a day (the assistance day) by suggesting that the consumer remain in a particular credit contract with a particular credit provider unless the licensee has, within 90 days (or other period prescribed by the regulations) before the assistance day:
made a preliminary assessment that:
is in accordance with subsection 116(2); and
covers a period in which the assistance day occurs; and
made the inquiries and verification in accordance with section 117.
Civil penalty: 5,000 penalty units.
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