Document ID: chunk:federal_register_of_legislation:F2024L01251:clause:2_8a:p1
Version: federal_register_of_legislation:F2024L01251
Segment Type: clause
Provision Reference: sch 2 cl 8A (pt 1/6)
Character Range: 41915–44804

8A  Financial hardship information
 (1) This section is made for the purposes of sections 6QA and 21EA of the Act.
Note 1:  Section 6QA of the Act sets out the definition of financial hardship arrangement and financial hardship information. A financial hardship arrangement exists where a credit provider and an individual (who is or will be unable to meet their obligations under the credit received from the provider) make an arrangement affecting the individual's monthly payment obligations. These arrangements can be either a permanent variation to the terms of the credit (a variation FHA) or temporary relief or deferral of the individual's obligations (a temporary FHA). Repayment history information is calculated by reference to the affected payment obligations. When repayment history information is calculated in this way, financial hardship information may also exist.
Note 2:  Section 21EA of the Act provides that if a credit provider discloses repayment history information about an individual in relation to a monthly payment and financial hardship information exists in relation to that payment, the financial hardship information must also be disclosed.

Disclosing financial hardship information
 (2) Financial hardship information may be disclosed in relation to consumer credit if the individual's payment obligation for a month under that consumer credit is affected by a financial hardship arrangement.
 (3) For the purposes of subsection (2), an individual's payment obligation for a month is affected by a financial hardship arrangement if the financial hardship arrangement is active on the later of:
 (a) last day of the month to which the repayment history information that could be disclosed for that month relates; and
Note: See section 8 for further information about disclosing repayment history information.
 (b) if a grace period applies for that month, the last day of the grace period allowed by the credit provider (the assessment day).
 (4) For the purposes of subsection (3), a financial hardship arrangement will be active where:
 (a) if the arrangement is a variation FHA: a payment due in that month (as determined by reference to the terms of the consumer credit) was affected by the financial hardship arrangement and that payment was the first payment affected by the arrangement; and
 (b) if the arrangement is a temporary FHA: a payment due in that month (as determined by reference to the terms of the consumer credit) was affected by the financial hardship arrangement and no other payments (as determined by reference to the terms of the consumer credit) that are unaffected by the arrangement have subsequently fallen due in that month (whether or not those subsequent payments have been paid).
 (5) If two or more financial hardship arrangements are active on the assessment day, the financial hardship information and repayment history