National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT

PART 3-2BA - LICENSEES THAT ARE CREDIT PROVIDERS UNDER CREDIT CONTRACTS: ADDITIONAL RULES RELATING TO LOW COST CREDIT CONTRACTS

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History

Pt 3-2BA inserted by No 138 of 2024, s 3 and Sch 2 [ 14 ] , effective 10 June 2025. No 138 of 2024, s 3 and Sch 2 [ 18 ] contains the following application provision:

18 Application provision - Part 3-2BA of the Act
Elections

(1)
A licensee may, under subsection 133BXA(1) of the National Consumer Credit Protection Act 2009 (the Act ), make an election that covers a low cost credit contract whether the contract was entered into before, on or after the time (the commencement time ) when this Part commences.

When inquiries etc. must be made

(2)
Section 133BXB of the Act applies for the purposes of applying section 128 of the Act in relation to conduct mentioned in paragraph 128(a) , (aa) , (b) or (ba) of the Act that occurs on or after the commencement time.

(3)
To avoid doubt, a period of 90 days mentioned in paragraph 133BXB(b) of the Act may start before, on or after the commencement time.

When inquiries etc. are reasonable

(4)
Section 133BXC of the Act applies in relation to:
(a) conduct mentioned in paragraph 133BXC(1)(a) or (b) of the Act that occurs on or after the commencement time; and
(b) determining whether a licensee has done a thing mentioned in paragraph 133BXC(2)(a) , (b) or (c) of the Act, whether that thing is done before, on or after the commencement time.

Assessments etc. in relation to larger contracts

(5)
Subsection 133BXD(2) of the Act applies in relation to entering a low cost credit contract if:
(a) the contract is entered on or after the commencement time; and
(b) the assessment, and the inquiries and verification, mentioned in that subsection are made on or after the commencement time.

(6)
Subsections 133BXD(3) to (6) of the Act apply:
(a) in relation to entering a low cost credit contract, as mentioned in paragraph 133BXD(3)(a) of the Act, if:

(i) the contract is entered on or after the commencement time; and

(ii) the assessment, and the inquiries and verification, mentioned in that paragraph are made on or after the commencement time; and

(b) in relation to an increase to the credit limit of a low cost credit contract, as mentioned in subsection 133BXD(4) of the Act, if the increase occurs on or after the commencement time.

Presumptions

(7)
Section 133BXE of the Act applies in relation to assessments mentioned in subsection 131(1) of the Act that are made on or after the commencement time.

(8)
Section 133BXF of the Act applies in relation to conduct mentioned in paragraph 133(1)(a) or (b) of the Act that occurs on or after the commencement time.

Division 1 - Introduction

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SECTION 133BX

133BX GUIDE TO THIS PART

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This Part has rules that apply to certain licensees who are, or are to be, credit providers under certain low cost credit contracts. It applies in addition to the general rules in Part 3-2 , and modifies some of those rules.

Division 1 provides that a licensee may elect that this Part apply to the licensee in relation to some or all low cost credit contracts. This Part only applies to a licensee who has made an election, and only applies to such a licensee in relation to low cost credit contracts covered by the election.

Division 2 modifies how some of the general rules in Part 3-2 apply to a licensee who has made an election. These modifications affect the rules that deal with the obligations of the licensee:

(a) to assess whether a low cost credit contract will be unsuitable for a consumer before doing particular things in relation to the contract; and

(b) not to enter, or increase the credit limit of, a low cost credit contract that is unsuitable for a consumer.

Division 3 requires a licensee who has made an election to have a policy (called an unsuitability assessment policy) that sets out how the licensee will comply with the licensee ' s obligation under Part 3-2 to assess whether a low cost credit contract will be unsuitable for a consumer.

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