ASIC has published its 2025 review of the consumer lease industry following recent action to enforce legislative changes made in 2022.

ASIC’s review revealed that several providers have stopped offering consumer leases and some have started to offer alternative regulated credit products, such as sale of goods by instalment contracts and lines of credit to buy household goods.

ASIC says it is reviewing these products and the pricing policies providers are adopting to determine whether this shift by providers into other credit products is seeking to avoid the additional consumer protections imposed on consumer leases, and whether there is any evidence of consumer harm.

Under the National Credit Act obligations:

• the total rental payments for all consumer leases held by a consumer, including the proposed lease, cannot exceed 10% of a consumer’s net income in each payment period;
• a consumer lease provider must not enter into, or vary, a consumer lease so that the total amount payable is more than is allowable under the permitted cap;
• Before entering into a consumer lease, providers must document their preliminary assessment that a lease is not unsuitable for a consumer, together with the inquiries and verification of information;
• A consumer lease must contain an itemised list of each fee or charge (including any applicable taxes and add-on fees) that forms part of the total amount payable under the consumer lease;
• Consumer lease providers should support their customers experiencing financial hardship.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.