The National Consumer Credit Protection Amendment (Home Loans and Credit Cards) Act 2011 contains additional rules that apply to credit licensees that are credit providers under credit card contracts.

The rules relating to the key facts sheet requirement for credit cards will commence on 1 July 2012.

They are set out in the National Consumer Credit Protection Amendment Regulations 2011 (No. 6) which were registered on 7 November 2011.

The changes will:

•insert new restrictions on a licensee approving the use of a credit card in excess of the credit limit for the credit card contract.
•require credit card providers to allocate repayments to higher interest debts first.
•prohibit a licensee making a credit limit increase invitation unless expressly consented to by the consumer, subject to a transitional provision.
•require lenders to inform consumers about the implications of only making minimum repayments through a personalised minimum repayment warning on monthly statements.
•require a consumer is provided with, or given access to, a Key Facts Sheet before entering into a credit card contract. If a consumer applies to a licensee for a credit card contract under which the licensee would be the credit provider, the licensee must not enter into, or offer to enter into, the contract unless the application is made using an application form that includes a Key Facts Sheet for the contract that contains up-to-date information. But entry by a licensee into a contract without an up-to-date Credit Card Key Facts Sheet having been provided to the borrower will not be a strict liability offence.

Lenders will be permitted to seek and obtain consents from consumers to receive credit limit increase invitations prior to 1 July 2012 so they can rely on those consents for the purpose of making an unsolicited credit limit offer after commencement.

The consumer may withdraw the consent at any time.

A licensee must keep a record of consents the licensee obtains and withdrawals of such consents.

The Regulations require a licensee who is the credit provider under a credit card contract to notify the consumer not later than 2 business days after the day on which the licensee becomes aware that the consumer has used the card in excess of the credit limit for the contract unless the consumer pays the excess within 2 business days and the credit provider has not already issued the notice.

If a credit card is used to obtain cash, goods or services in excess of the credit limit for the credit card contract, the licensee who is the credit provider under the contract is prohibited from imposing any liability to pay fees or charges, or a higher rate of interest, on the consumer who is the debtor under the contract because the credit limit was exceeded unless:
(a) the licensee has obtained express consent from the consumer covering the imposition of the fees or charges, or the higher rate of interest; and
(b) the consent has not been withdrawn.

The final regulations do not contain a requirement relating to the disclosure of interest free calculation models.