Representations that use the term “reverse mortgage” etc
133DE Representations that use the term “reverse mortgage” etc
Credit service providers
A licensee must not, in providing or offering to provide a credit service to a consumer, use either of the following terms (either alone or in combination with other words or letters) in a representation to the consumer about an actual or proposed credit contract or mortgage:
the phrase “reverse mortgage”;
another term (whether or not in English) of similar import to the phrase “reverse mortgage”.
Civil penalty: 5,000 penalty units.
Credit providers
A licensee that is a credit provider must not use either of the following terms (either alone or in combination with other words or letters) in a representation to a consumer about an actual or proposed credit contract or mortgage:
the phrase “reverse mortgage”;
another term (whether or not in English) of similar import to the phrase “reverse mortgage”.
Civil penalty: 5,000 penalty units.
Defence
For the purposes of subsections (1) and (2), it is a defence if:
the representation truly represents that a credit contract:
is or will be a credit contract for a reverse mortgage; or
is not or will not be a credit contract for a reverse mortgage; or
the representation truly represents that a mortgage:
is or will be part of a reverse mortgage; or
is not or will not be part of a reverse mortgage.
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