NATIONAL CONSUMER CREDIT PROTECTION REGULATIONS 2010

Commonwealth Consolidated Regulations

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NATIONAL CONSUMER CREDIT PROTECTION REGULATIONS 2010

- made under the National Consumer Credit Protection Act 2009

TABLE OF PROVISIONS

CHAPTER 1--Preliminary

1. Name of Regulations [see Note 1]
2. Commencement
3. Definitions
4. Meaning of associate
5. Prescribed orders
6. Forms

CHAPTER 2--Licensing of persons who engage in credit activities

PART 2-1--AUSTRALIAN CREDIT LICENCES

7. How to get an Australian credit licence -- requirements for a foreign entity to appoint local agent
7A. When licence may be granted -- continuous credit activity
8. How to get an Australian credit licence -- streamlined process for particular classes of applicants
9. The conditions on the licence
9AA. The conditions on the licence -- special purpose funding entity
9AB. Conditions for licensee -- referrals
9A. Conditions for unlicensed carried over instrument lender -- credit register
10. Obligations of licensees -- alternative dispute resolution systems
11. Obligations of licensees -- foreign entity must continue to have local agent
12. Obligations of licensees -- requirements for compensation arrangements
13. Obligations of licensees -- offence in relation to failure to cite licence number in documents
14. Obligations of licensees -- who compliance certificate must be signed by
15. When a licence can be suspended, cancelled or varied -- grounds to suspend or cancel licence

PART 2-2--AUTHORISATION OF CREDIT REPRESENTATIVES

16. Sub-authorisation by body corporate

PART 2-3--FINANCIAL RECORDS, TRUST ACCOUNTS AND AUDIT REPORTS

17. Information and matters to be contained in a trust account audit report
18. Eligibility of auditors to prepare trust account audit report
19. Auditors who prepare audit reports

PART 2-4 --EXEMPTIONS AND MODIFICATIONS

Division 1--Exemptions

Subdivision 1.1--Persons exempt from being licensed

20. Persons exempt from requiring a licence -- general [see Note 2]
21. Persons exempt from requiring a licence -- debt collectors [see Note 2]
22. Persons exempt from requiring a licence -- third parties
23. Persons exempt from requiring a licence -- suppliers of goods or services
23A. Persons exempt from requiring a licence -- suppliers of goods or services with branded or co-branded credit card
23B. Persons exempt from requiring a licence -- fund raising special purpose entity
23C. Persons exempt from requiring a licence -- securitisation entity
23D. Persons exempt from requiring a licence -- employment agencies

Subdivision 1.2--Activities exempt from being credit activities under the Act

24. Activities exempt from being credit activities [see Note 2]

Subdivision 1.3--Persons exempt from matters other than being licensed

24A. ADI or registrable corporation exempt from responsible lending contract obligations -- loan application received before 1 January 2011

Division 2--Modifications

25. Activities exempt from requiring a licence
25A. Modifications -- credit representatives
25B. Modification -- meaning of linked credit provider or linked lessor for regulation 23
25C. Modification -- meaning of linked credit provider for regulation 23A
25D. Modification -- meaning of services for regulations 23 and 23A
25E. Modifications -- unlicensed carried over instrument lender
25F. Modifications -- ADI in relation to carried over instrument
25G. Modifications -- special purpose funding entity
25H. Modifications -- temporary staff
25I. Modifications -- locums
25J. Modification -- exempted persons
25K. Modification -- credit card contracts
25L. Modification -- assignees of credit providers, lessors, mortgagees and beneficiaries of a guarantee

CHAPTER 3--Responsible lending conduct

PART 3.1----PRELIMINARY

26. Definitions

PART 3.2----REQUIREMENTS ABOUT CREDIT GUIDES

26A. Credit guide of licensee -- to include further information
26B. Credit guide of credit provider or lessor -- information about mortgage managers and product designers
27. Credit guide of licensees -- when information about fees, charges and commission is not required
27A. Credit guide of credit representatives -- to include further information
27B. Credit guide of credit representatives -- when information about fees, charges and commission not required
28. Credit guide of credit representatives -- contact details for an approved external dispute resolution scheme
28B. Credit guide -- circumstances where not required to update information

PART 3.3----REQUIREMENTS ABOUT QUOTES

28C. Circumstances where no quote required
28D. Quote for providing credit assistance -- licensee to give information about fees and charges

PART 3.4----REQUIREMENTS ABOUT PROPOSAL DISCLOSURE DOCUMENTS

28E. Proposal disclosure document -- information about fees and charges
28F. Proposal disclosure document -- when information about fees and charges not required
28G. Proposal disclosure document -- information about commissions
28H. Proposal disclosure documents -- when information about commissions not required

PART 3.5----OTHER OBLIGATIONS

28J. Obligations of credit providers before entering credit contracts or increasing credit limits
28L. Manner of giving disclosure documents
28LA. Standard home loans
28LB. Key Facts Sheets

PART 3.6----MODIFICATIONS AND EXEMPTIONS

28M. Modifications
28N. Exemption -- requirement to provide disclosure documents
28P. Circumstances where credit guide not required
28Q. Exemption -- credit assistance provider with shared responsibility for credit contract
28R. Exemption -- intermediary's requirement to provide proposal disclosure document

CHAPTER 4--Administration -- registers relating to credit activities

29. Credit registers -- licensees, credit representatives and registered persons
30. Credit registers -- persons against whom banning order or disqualification order is made
30A. Credit register -- unlicensed carried over instrument lender

CHAPTER 5--Compliance and enforcement

31. Investigations -- distribution of report
32. Examination of person -- form of notice requiring assistance and appearance for examination
33. Inspection of books and audit information-gathering powers -- evidence of authority
34. Hearings -- form of summons to appear before ASIC
35. Miscellaneous provisions -- allowances and expenses

CHAPTER 6--Miscellaneous

PART 6-1--COURT PROCEEDINGS

36. Where proceedings may be brought

PART 6-2--INFRINGEMENT NOTICES

37. Purpose of Part 6-2
38. Definitions for Part 6-2
39. When an infringement notice can be given
40. Contents of infringement notice
41. Amount of penalty if infringement notice given
42. Extension of time to pay penalty
43. Payment of penalty by instalments
44. Time for payment of penalty
45. Effect of payment of penalty
46. Withdrawal of infringement notice by nominated person
47. Withdrawal of infringement notice by ASIC
48. Notice of withdrawal of infringement notice
49. Refund of penalty

CHAPTER 7--Matters in relation to the National Credit Code

PART 7-1--EXEMPTIONS, DECLARATIONS AND OTHER MATTERS

50. Continued application of Part 12 of the Code and interpretation provisions
51. Exempt credit -- maximum account charges
52. Additional exempt credit
53. GIO Finance Limited's No Interest Loan Scheme -- exemption from Code
54. Rental Purchase Plan -- exemption from certain provisions of Code
55. Partnership loans -- exemption from certain provisions of Code
56. Student loans -- exemption from certain provisions of Code
57. Loans for conservation of heritage items -- exemption from Code
58. ADIs -- exemption from Code
59. Estate administrators -- exemption from certain provisions of Code
60. Credit under Aged Care Act 1997 -- exemption from certain provisions of Code
61. Firefighter's Benefit Fund of WA Incorporated -- exemption from certain provisions of Code
62. Charge card contracts -- exemption of certain contracts from Code
63. Credit providers providing credit to directors -- exemption from certain provisions of Code
64. Mortgages -- exemptions from Code
65. Guarantees -- exemption from Code
65A. Indigenous Business Australia -- exemption from certain provisions of Code
65B. Exemption -- providing credit in relation to a residential investment property
65C. Residential investment property loans -- exemption from Code
66. Deemed mortgages for goods lease with option to purchase
67. Prescribed person in relation to a declaration
68. Declaration of purposes for which credit provided
69. Direct debit default notices -- exemption for credit providers

PART 7-2--CREDIT CONTRACTS

70. Statement about debtor's statutory rights and obligations
71. Comparison rate
72. Pre-contractual statement
73. Additional disclosures about insurance financed by contract
74. Additional disclosures about credit contracts to be signed by debtor
75. Deduction of amount for interest charges
76. Calculation of unpaid daily balances
77. Early debit or payment of interest charges
78. Interest charges in relation to residential investment property
79. When statement of account not required

PART 7-2A----PROHIBITED CREDIT FEES AND CHARGES

79A. Termination fees for certain credit contracts

PART 7-3--RELATED MORTGAGES AND GUARANTEES

80. Mortgage arising from certain home ownership schemes -- exemption from subsection 50 (1) of the Code
81. Form of guarantees
82. Explanation about guarantor's rights and obligations

PART 7-4--CHANGES TO OBLIGATIONS UNDER CREDIT CONTRACTS, MORTGAGES AND GUARANTEES

83. Information about increases in the amount of credit

PART 7-5--ENDING AND ENFORCING CREDIT CONTRACTS, MORTGAGES AND GUARANTEES

84. Information after surrender of goods
85. Notice after direct debit default occurs
86. Notice after default occurs
87. Consent to enter premises
88. Statement about mortgagor's rights and obligations
89. Information about proceeds of sale of mortgaged goods

PART 7-6--RELATED SALE CONTRACTS

90. Rate of interest on damages
91. Informing debtor of rights
92. Rebate of consideration

PART 7-7--RELATED INSURANCE CONTRACTS

93. Particulars of insurance entered into by credit provider
94. Proportionate rebate of consumer credit insurance premium
95. Notice of right to cancel mortgaged property insurance
96. Proportionate rebate of premium for insurance over mortgaged property

PART 7-8--COMPARISON RATES

97. Relevant comparison rate where annual percentage rate stated
98. Information about whether comparison rate relates to secured loan
99. Warnings about comparison rate
100. Calculation of comparison rates

PART 7-9--CONSUMER LEASES

102. Consumer lease excluded from application of Part 11 of the Code
103. Prescribed person in relation to declarations
104. Declaration about purpose of lease
105. Explanation about rights and obligations of consumer lessees

PART 7-10----MISCELLANEOUS

106. Tolerances relating to disclosures
107. Tolerances relating to amounts payable etc
108. Additional assumptions relating to disclosures
109. Contracts linked to loan account offset arrangements
110. Requirements for print or type
111. Notices
111A. Exemption from Code -- persons who are not members of approved external dispute resolution scheme

PART 7-11----SAVING AND TRANSITIONAL PROVISIONS --RELIANCE ON STATE AND TERRITORY CONSUMER CREDIT CODES

112. References in documents to Consumer Credit Code of a State or Territory
SCHEDULE 1 Forms
SCHEDULE 2 Modifications -- carried over instruments
SCHEDULE 3 Modifications -- special purpose funding entity
SCHEDULE 4 Modifications -- responsible lending conduct
SCHEDULE 5 Key Facts Sheets

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