On Friday 14 August 2009 the Commonwealth Government released
the National Consumer Credit Protection (NCCP) Regulations and
announced changes to the timetable for implementation.
The consultation drafts which were released:
replace the existing UCCC regulations and make new regulations
in relation to the licensing regime (National Consumer Credit
Protection Regulations 2009)
make transitional provisions (National Consumer Credit
Protection (Transitional and Consequential Provisions) Regulations
make special provisions for electronic credit transactions
(Electronic Transactions Amendment Regulations 2009)
set fees for the credit and broking licensing regime (National
Consumer Credit Protection (Fees) Regulations 2009).
The changes will bring forward the responsible lending conduct
requirements for brokers and some lenders, which will now apply
from 1 January 2010 instead of 1 January 2011, as previously
This is very big news for the mortgage industry.
In summary, it is proposed that the responsible lending
provision requirement not to arrange or provide credit that is
unsuitable will come into force on 1 January 2010 for all lenders
and brokers who are not authorised deposit-taking institutions
(ADIs) or registered finance companies
(RFCs). ADIs and RFCs will need to comply with
this requirement from 1 January 2011.
All other responsible lending obligations such as disclosure
requirements surrounding fees will come into force on 1 January
The current UCCC requirements will be replicated in the NCCP
from 1 January 2010 but the new UCCC requirements introduced by the
NCCP will now not come into force until 1 July 2010 providing time
for the industry to prepare.
The new UCCC requirements include:
application of the UCCC to loans made to individuals for
investment in real estate
introduction of a default notice for direct debit defaults and
amendments to the current default notice requirements
amendments to the business purpose declarations
introduction of new notices in response to hardship variations
With respect to fees, the table below summarises some of the key
fees which will be charged by ASIC.
Non electronic lodgements
Apply for a licence; varies depending on the
number of representatives. 10% discount for ADIs and WA A and B
class brokers and WA licensed credit providers:
More than 100
The Sportscraft refunds and returns policy limitations went beyond consumer's rights under the Australian Consumer Law.
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