We can assist you with obtaining a credit licence, applying for relief, setting up your contract and procedures, training and consumer credit compliance reviews to ensure you meet ongoing obligations.
The National Consumer Credit Protection Act contains a national licensing scheme for credit providers and persons providing credit assistance services or acting as intermediaries.
ASIC may issue banning orders or vary, suspend or cancel conditions for a licence.
Conduct (including responsible lending) and disclosure obligations apply to all licensees. Compliance with the credit legislation is a core licence obligation under the National Credit Act .
The credit legislation includes any other Commonwealth, State or Territory legislation that covers conduct relating to credit activities (whether or not it also covers other conduct), but only in so far as it covers conduct relating to credit activities (eg AML/CTF, ASIC Act, Privacy Act).
Credit is provided if under a contract, payment of a debt owed by one person (the debtor) to another (the credit provider) is deferred.
The Credit Code applies to credit providers who make a charge for providing the credit and provide the credit in the course of a business of providing credit or as part of or incidental to any other business of the credit provider.
In Australia the Credit Code applies regardless of the amount of credit (there is no maximum) or the interest rate charged (there is no minimum). The Code applies to all credit provided to:
- Individual debtors and strata corporations
- For wholly or predominantly personal, domestic or household purposes or
- Wholly or predominantly for the purchase, renovation, improvement or refinancing of residential investment property.
A debtor need not be an Australian resident.
The Credit Act and Credit Code regulate assessing credit applications, the form and content of the contract, interest calculations, administration, fees and charges, variations, hardship, enforcement and dispute resolution.