Australian Capital Territory Consolidated Acts

FAIR TRADING ACT 1992 - SECT 28A

    (1)     A credit provider must not enter into a continuing credit contract for a credit card with a debtor unless the credit provider has carried out a satisfactory assessment process.

    (2)     A credit provider must not increase the amount of credit available under a continuing credit contract for a credit card unless—

        (a)     the debtor has requested the increase in writing, or the credit provider has offered the debtor the increase and the debtor has accepted the offer in writing; and

        (b)     the credit provider has carried out a satisfactory assessment process.

    (3)     "     "For this section, a satisfactory assessment process , in relation to a debtor, is an assessment of the debtor's financial situation sufficient to satisfy a diligent and prudent credit provider that the debtor has a reasonable ability to repay the amount of credit provided or to be provided.

    (4)         Without limiting subsection (3), an assessment process is a satisfactory assessment process only if the credit provider—

        (a)     asks the debtor for a statement of the debtor's financial situation, including—

              (i)     income; and

              (ii)     all credit accounts and applicable limits and balances; and

              (iii)     repayment commitments; and

        (b)     takes the statement into account in making the assessment.

    (5)         In this section:

"credit card"–see section 28 (4).

"continuing credit contract"—see the Consumer Credit (Australian Capital Territory) Code , schedule 1, section 1 (1), definition of continuing credit contract .

Note 1     The Code, sch 1, s 1 (1) defines a continuing credit contract as a credit contract under which—

        (a)         multiple advances of credit are contemplated; and

        (b)         the amount of available credit ordinarily increases as the amount of credit is reduced.

Note 2     The Consumer Credit (Australian Capital Territory) Code is defined in the Legislation Act, dict, pt 1. For the latest republication of the code, see www.legislation.act.gov.au.

"credit provider", in relation to a credit contract, means a person who provides credit under the credit contract in the course of a business of providing credit or as part of or incidentally to any other business of the credit provider, and includes a prospective credit provider.

"debtor" means a person (other than a guarantor) who is liable to pay for (or to repay) credit, and includes a prospective debtor.