Document ID: chunk:federal_register_of_legislation:F2024L01251:clause:2_8a:p4
Version: federal_register_of_legislation:F2024L01251
Segment Type: clause
Provision Reference: sch 2 cl 8A (pt 4/6)
Character Range: 49716–52469

credit provider does not agree to a hardship request, an overdue payment arrangement directly following that refusal is presumed to be a temporary FHA unless the provider tells the individual that the arrangement is not a financial hardship arrangement.
Note: This subsection relates to the arrangements that are put in place between the individual and the credit provider for the purposes of the credit reporting system. A provider must separately consider whether the individual has given a 'hardship notice' under the National Credit Code. If an individual gives a hardship notice, the provider would have obligations under sections 72 or 177B of the National Credit Code. If the individual gives a 'hardship notice', the provider is not required to agree to a temporary FHA.

Variation FHAs
 (11) For the purpose of the definition of variation FHA, an agreement between the individual and a credit provider to vary the terms of the consumer credit is a variation FHA if:
 (a) the agreement is made:
 (i) following and in response to a temporary FHA; or
 (ii) in response to a hardship request; and
 (b) one or more of the following types of variations has been agreed:
 (i) reducing the monthly payment obligations that are to fall due under the consumer credit (whether for the remainder of the term of the credit or a shorter period) so that if the individual satisfies those obligations (and not the previous obligations) the credit provider would treat the consumer credit as not being overdue (as determined by reference to the terms of the consumer credit); and
 (ii) treating payments that are already overdue in relation to the consumer credit as being no longer overdue (as determined by reference to the terms of the consumer credit) without the individual paying those overdue amounts;
 (iii) extending the term of the consumer credit;
 (iv) waiving debt under the consumer credit (whether that debt is made up of principal, interest, fees or other charges), including where the CP agrees to permanently cease efforts to collect the debt;
 (v) reducing the interest rate, fees or other charges payable in relation to the consumer credit (unless this is done as an incidental part of an overdue payment arrangement); or
 (vi) changing the repayment terms in relation to the consumer credit from principal and interest to interest only or extending a current interest only period (whether for the remainder of the term of the credit or a shorter period).

Providing information about RHI and FHI to be disclosed
 (12) If an overdue payment arrangement or variation FHA is put in place, a credit provider must take reasonable steps to provide the individual with information that describes the repayment history information and, if relevant,