Consumer Credit Administration Regulation 2002

Part 1 Preliminary

pt 1, hdg: Ins 30.4.2004.

1 Name of Regulation

This Regulation is the Consumer Credit Administration Regulation 2002.

2 Commencement

This Regulation commences on 1 September 2002.

2A Definition

In this Regulation:

the Act means the Consumer Credit Administration Act 1995.

cl 2A: Ins 30.4.2004.

Part 2 Regulation of finance broking

pt 2 (cll 2B–2F): Ins 30.4.2004.

2B Classes of finance brokers to whom Part 1A (Regulation of finance broking) of the Act does not apply

For the purposes of section 4B (2) of the Act, finance brokers who act as intermediaries for other finance brokers and who:

(a)  do not deal directly with the persons for whom consumer credit is or is to be obtained, or

(b)  deal directly with such persons but only in relation to matters that are incidental or ancillary to the obtaining of consumer credit for such persons,

are prescribed as a class of finance brokers to whom Part 1A of the Act does not apply.

pt 2 (cll 2B–2F): Ins 30.4.2004.

2C Finance broking contracts—statement in relation to potential lenders

For the purposes of section 4C (3) (g) of the Act, a written document that includes the following statements is prescribed:

(a)  a statement identifying each credit provider with whom the finance broker has entered into arrangements under which, subject to the client meeting the credit provider’s lending criteria, the finance broker can obtain consumer credit for the client,

(b)  a statement to the effect that the credit providers identified in accordance with paragraph (a) do not necessarily represent all the credit providers who offer consumer credit of the nature sought by the client.

pt 2 (cll 2B–2F): Ins 30.4.2004.

2D Finance broking contracts—statement in relation to financial or other benefit that will be received by finance broker

(1)  For the purposes of section 4C (3) (m) of the Act, the following terms are prescribed in relation to the statement that must be included in a finance broking contract if a financial or other benefit will be received by the finance broker from a person other than the client:

(a)  a statement as to the fact that the finance broker will receive a financial or other benefit from a person or persons other than the client,

(b)  a statement indicating the highest and the lowest amount of the financial or other benefit the finance broker would receive from different credit providers if they were to provide consumer credit to the client,

(c)  an undertaking by the finance broker that the broker will, after recommending to the client a particular consumer credit product and before the client enters into any credit contract with the credit provider, disclose the following matters to the client:

(i)  the amount of the financial or other benefit that the finance broker will receive from the credit provider,

(ii)  whether or not the finance broker can determine or recommend conditions of the credit contract (for example, the interest rate, fees or the term of the loan) and, if so, the effect of any such condition on the amount that the finance broker will receive from the credit provider,

(iii)  the amount of any financial or other benefit that a person other than the finance broker (such as the finance broker’s employer or a company of which the finance broker is a director) will receive from the credit provider, but only if that financial or other benefit could reasonably be expected to influence the finance broker’s recommendation,

(iv)  any interests or relationships of the finance broker that could reasonably be expected to influence the finance broker’s recommendation.

(2)  Any financial or other benefit referred to in this clause may be expressed as a dollar amount or, if the total amount or value of the benefit is not ascertainable at the time that the contract is provided to the client, may be expressed by a description of the method of calculating the benefit and, in either case, is to include any amount that represents the goods and services tax payable in respect of the benefit.

(3)  Subclause (2) does not limit the requirement to disclose benefits that cannot be readily expressed in monetary terms (for example, benefits comprising tickets to sporting events, holiday offers or the provision of services).

pt 2 (cll 2B–2F): Ins 30.4.2004.

2E Finance broking contracts—additional matters to be included

For the purposes of section 4C (3) (n) of the Act, the following matters are prescribed as matters that must be included in a finance broking contract:

(a)  a description of any special loan features (such as redraw facilities) that are required by the client,

(b)  if any financial or other benefit has been or will be paid by the finance broker to a person for referring potential clients to the finance broker—the amount of any such benefit and the name of the person.

pt 2 (cll 2B–2F): Ins 30.4.2004.

2F Prescribed rate of interest

The rate of interest prescribed for the purposes of section 4L (2) of the Act is the rate for the time being prescribed under section 95 (1) of the Supreme Court Act 1970 for payment of interest on a judgment debt.

pt 2 (cll 2B–2F): Ins 30.4.2004.

Part 3 Miscellaneous

pt 3, hdg: Ins 30.4.2004.

3 Witnesses expenses before Tribunal

For the purposes of section 32 (4) of the Act, a witness summoned under that section is entitled to be paid fees and allowances according to the scales of expenses allowable to witnesses in civil proceedings in the District Court.

cl 3: Am 30.4.2004.