Credit provider not to enter into credit card contract unless it allows credit limit to be reduced
133BF Credit provider not to enter into credit card contract unless it allows credit limit to be reduced
Requirement
A licensee must not enter into, or offer to enter into, a credit card contract under which the licensee would be the credit provider, if the consumer who would be the debtor under the contract would not have a credit limit reduction entitlement under the contract.
Civil penalty: 5,000 penalty units.
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.
Meaning of credit limit reduction entitlement
A consumer who is the debtor under a credit card contract has a credit limit reduction entitlement under the contract if:
for a contract that does not provide for a minimum credit limit—the consumer is entitled under the contract to reduce the credit limit of the contract to any amount (including nil); or
for a contract that provides for a minimum credit limit—the consumer is entitled under the contract to reduce the credit limit of the contract to any amount that equals, or exceeds, the minimum credit limit.
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.