Obligation to assess unsuitability
128 Obligation to assess unsuitability
A licensee must not:
enter a credit contract with a consumer who will be the debtor under the contract; or
make an unconditional representation to a consumer that the licensee considers that the consumer is eligible to enter a credit contract with the licensee; or
increase the credit limit of a credit contract with a consumer who is the debtor under the contract; or
make an unconditional representation to a consumer that the licensee considers that the credit limit of credit contract between the consumer and the licensee will be able to be increased;
on a day (the credit day) unless the licensee has, within 90 days (or other period prescribed by the regulations for the purposes of this section) before the credit day:
made an assessment that:
is in accordance with section 129; and
covers the period in which the credit day occurs; and
made the inquiries and verification in accordance with section 130.
Part 3‑2BA affects how this section, and other provisions in this Part, apply in relation to certain low cost credit contracts.
Civil penalty: 5,000 penalty units.
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