Document ID: chunk:federal_register_of_legislation:C2024C00826:section:130
Version: federal_register_of_legislation:C2024C00826
Segment Type: section
Provision Reference: s 130
Character Range: 267395–268855

130  Reasonable inquiries etc. about the consumer

Requirement to make inquiries and take steps to verify
 (1) For the purposes of paragraph 128(d), the licensee must, before making the assessment:
 (a) make reasonable inquiries about the consumer's requirements and objectives in relation to the credit contract; and
 (b) make reasonable inquiries about the consumer's financial situation; and
 (c) take reasonable steps to verify the consumer's financial situation; and
 (d) make any inquiries prescribed by the regulations about any matter prescribed by the regulations; and
 (e) take any steps prescribed by the regulations to verify any matter prescribed by the regulations.
Civil penalty: 5,000 penalty units.
 (1A) If:
 (a) the credit contract is a small amount credit contract; and
 (b) the consumer holds (whether alone or jointly with another person) an account with an ADI into which income payable to the consumer is credited;
the licensee must, in verifying the consumer's financial situation for the purposes of paragraph 128(d), obtain and consider information about each transaction on the account, and the balances of the account, during at least the immediately preceding period of 90 days.
 (1B) Subsection (1A) does not limit paragraph (1)(c) of this section.
 (2) The regulations may prescribe particular inquiries or steps that must be made or taken, or do not need to be made or taken, for the purposes of paragraph (1)(a), (b) or (c).