Document ID: chunk:federal_register_of_legislation:C2018A00009:clause:5_133bf
Version: federal_register_of_legislation:C2018A00009
Segment Type: clause
Provision Reference: sch 5 cl 133BF
Character Range: 32789–34030

133BF  Credit provider not to enter into credit card contract unless it allows credit limit to be reduced

Requirement
 (1) A licensee must not enter into, or offer to enter into, a credit card contract under which the licensee would be the credit provider, if the consumer who would be the debtor under the contract would not have a credit limit reduction entitlement under the contract.
Civil penalty: 2,000 penalty units.

Offence
 (2) A person commits an offence if:
 (a) the person is subject to a requirement under subsection (1); and
 (b) the person engages in conduct; and
 (c) the conduct contravenes the requirement.
Criminal penalty: 50 penalty units.

Meaning of credit limit reduction entitlement
 (3) A consumer who is the debtor under a credit card contract has a credit limit reduction entitlement under the contract if:
 (a) for a contract that does not provide for a minimum credit limit—the consumer is entitled under the contract to reduce the credit limit of the contract to any amount (including nil); or
 (b) for a contract that provides for a minimum credit limit—the consumer is entitled under the contract to reduce the credit limit of the contract to any amount that equals, or exceeds, the minimum credit limit.