Document ID: chunk:federal_register_of_legislation:F2024C00882:reg:28rb:p1
Version: federal_register_of_legislation:F2024C00882
Segment Type: reg
Provision Reference: reg 28RB (pt 1/4)
Character Range: 214973–217650

28RB  Exemption relating to small businesses

Licensees providing credit assistance in relation to applications for credit contracts, or increases to credit limits
 (1) For the purposes of paragraph 164(a) of the Act, a person that is a licensee is exempted from Divisions 4 and 6 of Part 3‑1 of the Act (other than subsection 115(2) and sections 119 and 124 of the Act) in relation to conduct engaged in by the person on a day in relation to a consumer if:
 (a) the day occurs in the exemption period (see subregulation (7)); and
 (b) the conduct consists of providing credit assistance to the consumer in relation to an application by the consumer to:
 (i) enter into a credit contract with a credit provider (see paragraphs 115(1)(a) and 123(1)(a) of the Act); or
 (ii) increase the credit limit of a credit contract between the consumer and a credit provider (see paragraphs 115(1)(b) and 123(1)(b) of the Act); and
 (c) the credit to be provided, or intended to be provided, under:
 (i) the credit contract; or
 (ii) the increase to the credit limit of the credit contract;
  is genuinely for the purposes of a small business operated by the consumer (whether alone or with others); and
 (d) those purposes are not merely minor or incidental in relation to:
 (i) if subparagraph (c)(i) applies—the overall purposes of the credit contract; or
 (ii) if subparagraph (c)(ii) applies—the overall purposes of the increase mentioned in that subparagraph.

Licensees providing credit assistance in relation to remaining in credit contracts
 (2) For the purposes of paragraph 164(a) of the Act, a person that is a licensee is exempted from subsection 115(2) and sections 119 and 124 of the Act in relation to conduct engaged in by the person on a day in relation to a consumer if:
 (a) the day occurs in the exemption period (see subregulation (7)); and
 (b) the conduct consists of providing credit assistance to the consumer by suggesting that the consumer remain in a credit contract with a credit provider (see subsections 115(2) and 124(1) of the Act); and
 (c) any of the following apply:
 (i) the credit provided under the credit contract was genuinely for the purposes of a small business operated by the consumer (whether alone or with others);
 (ii) if the credit limit of the credit contract was increased one or more times—the credit provided under at least one of the increased limits was genuinely for the purposes of a small business operated by the consumer (whether alone or with others);
 (iii) if any remaining credit is available under the credit contract—the consumer intends for all or part of the remaining credit to be applied genuinely for the purposes of