NATIONAL CONSUMER CREDIT PROTECTION ACT 2009 - SECT 133BF Credit provider not to enter into credit card contract unless it allows credit limit to be reduced

NATIONAL CONSUMER CREDIT PROTECTION ACT 2009 - SECT 133BF

Requirement

  (1)   A licensee must not enter into, or offer to enter into, a credit card contract under which the licensee would be the credit provider, if the consumer who would be the debtor under the contract would not have a credit limit reduction entitlement under the contract.

Civil penalty:   5,000 penalty units.

Offence

  (2)   A person commits an offence if:

  (a)   the person is subject to a requirement under subsection   (1); and

  (b)   the person engages in conduct; and

  (c)   the conduct contravenes the requirement.

Criminal penalty:   50 penalty units.

Meaning of credit limit reduction entitlement

  (3)   A consumer who is the debtor under a credit card contract has a credit limit reduction entitlement under the contract if:

  (a)   for a contract that does not provide for a minimum credit limit--the consumer is entitled under the contract to reduce the credit limit of the contract to any amount (including nil); or

  (b)   for a contract that provides for a minimum credit limit--the consumer is entitled under the contract to reduce the credit limit of the contract to any amount that equals, or exceeds, the minimum credit limit.