Document ID: chunk:federal_register_of_legislation:C2024A00138:clause:2_133bxe:p1
Version: federal_register_of_legislation:C2024A00138
Segment Type: clause
Provision Reference: sch 2 cl 133BXE (pt 1/2)
Character Range: 60805–63590

133BXE  Assessments of low cost credit contracts—presumptions where credit limit of contract not above threshold amount
 (1) This section applies when determining, for the purposes of subsection 131(1), whether a low cost credit contract will be unsuitable for a consumer under paragraph 131(2)(b) if the contract is entered, or the credit limit of the contract is increased, in the period covered by the assessment mentioned in subsection 131(1).
Note: This section does not affect whether a low cost credit contract will be unsuitable for a consumer under paragraph 131(2)(a) or (c).

Entering a low cost credit contract
 (2) For the purpose of applying subsection 131(1) in relation to a licensee entering a low cost credit contract (the initial contract) with a consumer, if the credit limit of the initial contract, at the time the initial contract is entered, will be less than or equal to the threshold amount, then it is presumed (unless the contrary is proved) that the initial contract will not be unsuitable for the consumer under paragraph 131(2)(b) if the initial contract is entered in the period covered by the assessment.
 (3) However, subsection (2) does not apply if:
 (a) the licensee satisfies paragraph 128(c) in relation to entering the initial contract by making an assessment that would satisfy that paragraph in relation to entering a larger contract with the consumer (see subsection 133BXD(2)); and
 (b) the credit limit of the larger contract is greater than the threshold amount.

Increasing the credit limit of a low cost credit contract
 (4) For the purpose of applying subsection 131(1) in relation to an increase (the relevant increase) made by a licensee to the credit limit of a low cost credit contract (the initial contract) with a consumer, if the credit limit of the initial contract after the increase will be less than or equal to the threshold amount, then it is presumed (unless the contrary is proved) that the initial contract will not be unsuitable for the consumer under paragraph 131(2)(b) if the relevant increase occurs during the period covered by the assessment.
 (5) However, subsection (4) does not apply if:
 (a) the licensee previously satisfied paragraph 128(c) in relation to entering the initial contract by making an assessment that would have satisfied that paragraph in relation to entering a larger contract with the consumer (see subsection 133BXD(2)); and
 (b) the credit limit of the larger contract was greater than the threshold amount; and
 (c) because of subsection 133BXD(4), the licensee is not required to make a new assessment in order to satisfy paragraph 128(c) into relation to the relevant increase.

Definitions
 (6) In this section:
larger contract means a low cost credit contract that:
 (a) has a credit