National Consumer Credit Protection Act 2009
CHAPTER 2
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LICENSING OF PERSONS WHO ENGAGE IN CREDIT ACTIVITIES
PART 2-2
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AUSTRALIAN CREDIT LICENCES
Division 5
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Obligations of licensees
Subdivision C
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Notifying and remediating consumers affected by reportable situations
SECTION 51A
REPORTING TO CONSUMERS AFFECTED BY A REPORTABLE SITUATION
Notifying an affected consumer of a reportable situation
51A(1)
A licensee must take reasonable steps to notify a consumer (the affected consumer ) of a reportable situation in accordance with this section if: (a) the licensee, or a representative of the licensee, provides or has provided credit assistance to the affected consumer in relation to a credit contract secured by a mortgage over residential property; and (b) the licensee, or the representative of the licensee, is a mortgage broker; and (c) there are reasonable grounds to believe that a reportable situation has arisen in relation to the licensee as mentioned in:
Form and period for giving notice
51A(2)
A notice under this section must: (a) be given in writing within 30 days after the licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs (1)(a) , (b) , (c) and (d) ; and (b) if ASIC has approved the form in which the notice must be given:
Qualified privilege
51A(3)
A licensee has qualified privilege in relation to a notice given under this section.
51A(4)
A licensee who has qualified privilege under subsection (3) in respect of conduct is also not liable for any action based on breach of confidence in relation to that conduct.
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Hide history noteNotifying an affected consumer of a reportable situation
51A(1)
A licensee must take reasonable steps to notify a consumer (the affected consumer ) of a reportable situation in accordance with this section if: (a) the licensee, or a representative of the licensee, provides or has provided credit assistance to the affected consumer in relation to a credit contract secured by a mortgage over residential property; and (b) the licensee, or the representative of the licensee, is a mortgage broker; and (c) there are reasonable grounds to believe that a reportable situation has arisen in relation to the licensee as mentioned in:
(i) paragraph 50A(1)(a) (significant breach of a core obligation); or
(d) there are reasonable grounds to suspect that:
(ii) subsection 50A(2) (gross negligence or serious fraud); and
(i) the affected consumer has suffered or will suffer loss or damage as a result of the reportable situation; and
(ii) the affected consumer has a legally enforceable right to recover the loss or damage from the licensee.
Civil penalty: 5,000 penalty units.
Form and period for giving notice
51A(2)
A notice under this section must: (a) be given in writing within 30 days after the licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs (1)(a) , (b) , (c) and (d) ; and (b) if ASIC has approved the form in which the notice must be given:
(i) be in the approved form; and
(ii) include the information, statements, explanations or other matters required by the form; and
(iii) be accompanied by any other material required by the form.
Qualified privilege
51A(3)
A licensee has qualified privilege in relation to a notice given under this section.
51A(4)
A licensee who has qualified privilege under subsection (3) in respect of conduct is also not liable for any action based on breach of confidence in relation to that conduct.