Document ID: chunk:federal_register_of_legislation:C2024C00826:section:128
Version: federal_register_of_legislation:C2024C00826
Segment Type: section
Provision Reference: s 128
Character Range: 265900–266902

128  Obligation to assess unsuitability
  A licensee must not:
 (a) enter a credit contract with a consumer who will be the debtor under the contract; or
 (aa) make an unconditional representation to a consumer that the licensee considers that the consumer is eligible to enter a credit contract with the licensee; or
 (b) increase the credit limit of a credit contract with a consumer who is the debtor under the contract; or
 (ba) make an unconditional representation to a consumer that the licensee considers that the credit limit of credit contract between the consumer and the licensee will be able to be increased;
on a day (the credit day) unless the licensee has, within 90 days (or other period prescribed by the regulations) before the credit day:
 (c) made an assessment that:
 (i) is in accordance with section 129; and
 (ii) covers the period in which the credit day occurs; and
 (d) made the inquiries and verification in accordance with section 130.
Civil penalty: 5,000 penalty units.