National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-2 - LICENSEES THAT ARE CREDIT PROVIDERS UNDER CREDIT CONTRACTS: GENERAL RULES  

Division 3 - Obligation to assess unsuitability  

SECTION 128  

128   OBLIGATION TO ASSESS UNSUITABILITY  
A licensee must not:

(a) enter a credit contract with a consumer who will be the debtor under the contract; or

(aa) 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

(b) increase the credit limit of a credit contract with a consumer who is the debtor under the contract; or

(ba) 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) before the credit day:

(c) made an assessment that:

(i) is in accordance with section 129 ; and

(ii) covers the period in which the credit day occurs; and

(d) made the inquiries and verification in accordance with section 130 .

Civil penalty: 5,000 penalty units.