Document ID: chunk:federal_register_of_legislation:C2012A00130:clause:4_32a
Version: federal_register_of_legislation:C2012A00130
Segment Type: clause
Provision Reference: sch 4 cl 32A
Character Range: 88835–90140

32A  Prohibitions relating to credit contracts if the annual cost rate exceeds 48%

Entering into a credit contract
 (1) A credit provider must not enter into a credit contract if the annual cost rate of the contract exceeds 48%.
Criminal penalty: 50 penalty units.

Provision of credit assistance
 (2) A person must not provide credit assistance to a consumer by suggesting that the consumer apply, or assisting the consumer to apply, for a particular credit contract with a particular credit provider if the person knows, or is reckless as to whether, the annual cost rate of the contract exceeds 48%.
Criminal penalty: 50 penalty units.
 (3) If a person provides credit assistance to a consumer that is prohibited by subsection (2):
 (a) the consumer is not liable (and is taken never to have been liable) to pay any fees or charges to the person in relation to:
 (i) the credit assistance; or
 (ii) any other services provided by the person in connection with the credit assistance; and
 (b) the consumer may recover as a debt due to the consumer the amount of any such fees or charges paid by the consumer to the person.

Application
 (4) This section does not apply if:
 (a) the credit provider is an ADI; or
 (b) the credit contract is a small amount credit contract or bridging finance contract.