New consumer credit disclosure regulations

The National Consumer Credit Protection Legislation Amendment Regulations 2010 (No.4) have been registered.

Amongst other things, the Regulations set out important practical changes relating to:

  • the form and content of responsible lending disclosure documents; and
  • the way they must be given to consumers.

The disclosure documents affected include the credit guide, credit quote and credit proposal disclosure document.

The changes:

  • provide temporary and conditional transitional relief between 1 January 2011 and 1 April 2011 in relation to disclosure of EDR scheme membership in credit guides and in relation to the provision of quotes and credit proposals by credit assistance providers;
  • exempt persons from the requirement to provide a credit guide in a number of specific situations where this results in duplication or is otherwise unnecessary (for example, because the consumer has previously been given one and the information has not changed);
  • exempt persons who provide credit assistance from having to give a quote if they will not be charging the consumer a fee;
  • permit disclosure documents to be given electronically, subject to conditions; and
  • permit two or more disclosure documents to be combined (provided that they otherwise meet the requirements of the National Credit Act).

Some existing regulations have been renumbered.

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