Unsolicited credit cards and debit cards

ASIC has released Regulatory Guide 201 Unsolicited credit cards and debit cards (RG 201).

RG 201 clarifies ASIC’s interpretation of the scope of s12DL of the Australian Securities and Investments Commission Act 2001, which prohibits a person from sending unsolicited credit cards and debits cards to consumers.

The guide sets out ASIC’s view that the exceptions to this prohibition only allow the sending out of a credit card or debit card in response to a written request by the consumer or that is effectively the same as, or equivalent to, an existing card used by the consumer and would not place the consumer in a different position with respect to use of the card. An example is where a card provider sends new cards with the same features to cardholders whose existing cards are close to expiry, or where the new card has new security features.

ASIC recognises that product development and innovations by card providers may result in some circumstances where the application of s12DL is not clear. If card providers consider that it is not clear whether a particular card distribution would be permitted by s12DL, they may apply to ASIC for a no-action letter.

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