unsuitability for a SACC or consumer lease. In particular, account statements can only be used for the purposes of complying with the Credit Act, when the use or disclosure is required or authorised by or under an Australian law or a court or tribunal order, or for the purposes of considering a hardship notice. The Bill requires licensees to document in writing their assessment or preliminary assessment that a SACC or a consumer lease for household goods is not unsuitable for a consumer. SACC providers and lessors of household goods are required to provide information to consumers as determined by ASIC by legislative instrument. This enables ASIC to create warning statements for SACCs and lessors of household goods to assist consumers to make informed decisions. The Bill also amends the hardship provisions of the Code to explicitly identify family violence as a reasonable cause of financial hardship. Comparison of key features of new law and current law New law Current law Licensees and subsequent third-party No equivalent requirement. recipients may only use or disclose an account statement (or information contained in an account statement) in certain limited circumstances. Civil and criminal penalties apply to a breach of this requirement. Licensees must document in writing Licensees must prepare suitability their assessment that a contract is not assessments as part of their unsuitable at the time of making the responsible lending obligations. assessment. Assessments may be given to consumers electronically. Licensees must provide information Licensees must display a warning about a SACC or consumer lease for statement to prospective consumers household goods in accordance with of a SACC in accordance with the requirements determined by ASIC in requirements prescribed in the Credit a legislative instrument. Regulations. For the purpose of the provisions For the purpose of the provisions changes to a debtor or lessee’s changes to a debtor or lessee’s obligations under a credit contract or obligations under a credit contract or consumer lease, family violence, consumer lease, illness and illness and unemployment are unemployment are explicitly
unsuitability for a SACC or consumer lease. In particular, account statements can only be used for the purposes of complying with the Credit Act, when the use or disclosure is required or authorised by or under an Australian law or a court or tribunal order, or for the purposes of considering a hardship notice. The Bill requires licensees to document in writing their assessment or preliminary assessment that a SACC or a consumer lease for household goods is not unsuitable for a consumer. SACC providers and lessors of household goods are required to provide information to consumers as determined by ASIC by legislative instrument. This enables ASIC to create warning statements for SACCs and lessors of household goods to assist consumers to make informed decisions. The Bill also amends the hardship provisions of the Code to explicitly identify family violence as a reasonable cause of financial hardship. Comparison of key features of new law and current law New law Current law Licensees and subsequent third-party recipients may only use or disclose an account statement (or information contained in an account statement) in certain limited circumstances. Civil and criminal penalties apply to a breach of this requirement. No equivalent requirement. Licensees must document in writing their assessment that a contract is not unsuitable at the time of making the assessment. Assessments may be given to consumers electronically. Licensees must prepare suitability assessments as part of their responsible lending obligations. Licensees must provide information about a SACC or consumer lease for household goods in accordance with requirements determined by ASIC in a legislative instrument. Licensees must display a warning statement to prospective consumers of a SACC in accordance with the requirements prescribed in the Credit Regulations. For the purpose of the provisions changes to a debtor or lessee’s obligations under a credit contract or consumer lease, family violence, illness and unemployment are For the purpose of the provisions changes to a debtor or lessee’s obligations under a credit contract or consumer lease, illness and unemployment are explicitly