Document ID: chunk:federal_register_of_legislation:F2024L01251:clause:2_8a:p3
Version: federal_register_of_legislation:F2024L01251
Segment Type: clause
Provision Reference: sch 2 cl 8A (pt 3/6)
Character Range: 47146–49975

provider has unreasonably or unnecessarily delayed agreeing to the arrangement, having regard to the time that the provider acting reasonably would have taken and any conduct of the individual that contributed to the delay; or
 (ii) otherwise, where the credit provider considers that the backdated commencement date more accurately reflects the date the arrangement ought to have commenced, having regard to all the circumstances; or
 (b) if:
 (i) the individual requests a credit provider to backdate the commencement date of the financial hardship arrangement on the basis that the individual was not able to make a hardship request at an earlier time because of the unavoidable consequences of circumstances beyond the individual's control, such as illness or natural disaster; and
 (ii) the credit provider is satisfied that this is the case.

Temporary FHAs
 (10) For the purposes of the definition of temporary FHA:
 (a) an overdue payment arrangement is presumed to be a temporary FHA if the individual will not pay at least their ordinary monthly payments within the next month. This presumption does not apply if:
 (i) the credit provider reasonably believes that the individual's inability to meet their obligations in relation to the consumer credit is the result of a mismanagement of funds in the short term; or
 (ii) the individual has not provided the information that the credit provider reasonably requested to assess the reason for the individual's inability to meet their obligations in relation to the consumer credit; or
 (iii) the individual explicitly states that they do not want to make a hardship request.
 (b) an overdue payment arrangement is presumed not to be a temporary FHA if the individual is to pay at least their ordinary monthly payments (without immediately paying all amounts that are currently overdue) within the next month. This presumption does not apply if:
 (i) the arrangement directly follows, and is in response to, an earlier temporary FHA; or
Note: This will apply to arrangements that are commonly called 'payment test periods' (or 'serviceability periods') or 'catch-up periods' that follow an earlier temporary FHA, and which relate to the overdue payments (as determined by the terms of the consumer credit) that have accrued during that temporary FHA.
 (ii) even if the individual makes those payments, the consumer credit is likely to still be overdue after 7 months; or
 (iii) the individual has made a hardship request and the individual and credit provider have explicitly agreed to a temporary FHA.
 (c) if a 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: