What’s new

« back

Credit Licensing Condcut Guide Released

2 March 2010

What's new?

ASIC have released guidance for credit licensees about the responsible lending obligations under the National Consumer Credit regime, which commences on 1 July 2010.

The National Consumer Credit Regime

The National Credit Act contains responsible lending obligations for Australian credit licensees, the obligations apply to:

• credit providers - banks, credit unions or finance companies
• credit assistance providers - mortgage and finance brokers

Responsible lending obligations

Credit licensees must not enter into, suggest or assist a consumer to apply for a credit contract if it unsuitable for the consumer. Licensees must:

• make reasonable inquiries about the consumer’s financial situation, requirements and objectives
• take reasonable steps to verify the consumer’s financial situation
• make an assessment about whether the credit contract is ‘not unsuitable’ for the consumer (based on the information gathered in the steps above
• provide a written copy of the assessment to the consumer, if they request it

Implementation

The responsible lending conduct obligations for brokers and some lenders will apply from 1 July 2010.

From 1 January 2011 the obligations will apply for the remaining lenders (ADIs and registered financial corporations).

How can Certainty help?

Certainty Compliance can also help you comply with your licence conditions. Please contact a Certainty consultant on (02) 9238 8091 or enquiries@certaintycompliance.com.au

For further inofrmation:

Link to ASIC's Media Release here: 10-32AD ASIC releases guidance for credit licensees about responsible lending