Victorian Consolidated Legislation

Consumer Credit (Victoria) Act 1995 - SECT 37J

Requirements before finance brokers may demand or accept fees

37J. Requirements before finance brokers may demand or accept fees



(1) A finance broker must not demand, receive or accept any fee in respect of
negotiating consumer credit unless-

   (a)  the finance broker has been appointed by the client in writing to
        negotiate consumer credit on their behalf; and

   (b)  the document of appointment sets out the fee to be charged or its
        method of calculation; and

   (c)  the document of appointment specifies the matters required by
        subsection (3); and

   (d)  the client has signed the document of appointment before the finance
        broker commences negotiating consumer credit on their behalf; and

   (e)  the client is given a copy of the signed document of appointment
        before the finance broker commences negotiating consumer credit on
        their behalf; and

   (f)  the client accepts-

   (i)  the consumer credit that is specified in the document of appointment;
        or

   (ii) consumer credit negotiated by the finance broker that is reasonably
        comparable to the consumer credit specified in the document of
        appointment.

(2) A reference in this Part to a document of appointment is a reference to
that document as varied by the finance broker and the client, whether before
or after the finance broker commences to negotiate consumer credit.

(3) For the purposes of subsection (1)(c)-

   (a)  where the finance broker is being appointed to negotiate consumer
        credit that is a credit contract within the meaning of the Consumer
        Credit (Victoria) Code, the matters required to be specified in the
        document of appointment are-

   (i)  the amount of credit, or if the amount of credit is not ascertainable,
        the maximum amount of credit or credit limit to be negotiated under
        the credit contract;

   (ii) if there is a term of the credit contract, that term;

   (iii) the maximum annual percentage rate or rates the client is prepared to
        pay;

   (iv) the duration of the appointment;

   (v)  an agreed maximum amount of credit application fees and valuation fees
        that the client may be required to pay;

   (b)  where the finance broker is being appointed to negotiate consumer
        credit that is a consumer lease to which Part 10 of the Consumer
        Credit (Victoria) Code applies, the matters required to be specified
        in the document of appointment are-

   (i)  a description or identification of the goods to be hired under the
        lease;

   (ii) the number of rental payments to be made;

   (iii) the maximum amount of rental payable under the lease which the client
        is prepared to pay;

   (iv) the amount of any other charges not included in the rental that the
        client is prepared to pay under the lease;

   (v)  the duration of the appointment;

   (vi) an agreed maximum amount of credit application fees that the client
        may be required to pay.