Document ID: chunk:federal_register_of_legislation:C2004C01246:clause:2_12dm
Version: federal_register_of_legislation:C2004C01246
Segment Type: clause
Provision Reference: sch 2 cl 12DM
Character Range: 75002–76606

12DM  Assertion of right to payment for unsolicited financial services

 (1) A corporation must not, in trade or commerce, assert a right to payment from a person for unsolicited financial services unless the corporation has reasonable cause to believe that there is a right to payment.

 (2) For the purposes of this section, a corporation is taken to assert a right to a payment from a person for unsolicited financial services if the corporation:
 (a) makes a demand for the payment or asserts a present or prospective right to the payment; or
 (b) threatens to bring any legal proceedings with a view to obtaining the payment; or
 (c) places, or causes to be placed, the name of the person on a list of defaulters or debtors, or threatens to do so, with a view to obtaining the payment; or
 (d) invokes, or causes to be invoked, any other collection procedure, or threatens to do so, with a view to obtaining the payment; or
 (e) sends any invoice or other document stating the amount of the payment or setting out the price of the services and not stating as prominently (or more prominently) that no claim is made to the payment or to payment of the price.

 (3) For the purposes of this section, an invoice or other document purporting to have been sent by or on behalf of a corporation is taken to have been sent by that corporation unless the contrary is established.

 (4) In a proceeding against a corporation in respect of a contravention of this section, the burden lies on the corporation of proving that the corporation had reasonable cause to believe that there was a right to payment.