Document ID: chunk:federal_register_of_legislation:C2024A00138:clause:2_133bxf
Version: federal_register_of_legislation:C2024A00138
Segment Type: clause
Provision Reference: sch 2 cl 133BXF
Character Range: 64049–65675

133BXF  Prohibition on entering unsuitable low cost credit contracts etc.—presumptions where credit limit of contract not above threshold amount
 (1) This section applies when determining, for the purposes of subsection 133(1), whether a low cost credit contract is unsuitable for a consumer under paragraph 133(2)(b).
Note: This section does not affect whether a low cost credit contract is unsuitable for a consumer under paragraph 133(2)(a) or (c).

Entering a low cost credit contract
 (2) For the purpose of applying subsection 133(1) in relation to a licensee entering a low cost credit contract with a consumer, if the credit limit of the contract, at the time the contract is entered, is less than or equal to the threshold amount, then it is presumed (unless the contrary is proved) that the contract is not unsuitable for the consumer under paragraph 133(2)(b).

Increasing the credit limit of a low cost credit contract
 (3) For the purpose of applying subsection 133(1) in relation to an increase made by a licensee to the credit limit of a low cost credit contract with a consumer, if the credit limit of the contract after the increase is less than or equal to the threshold amount, then it is presumed (unless the contrary is proved) that the contract is not unsuitable for the consumer under paragraph 133(2)(b).

Definitions
 (4) In this section:
threshold amount means:
 (a) $2,000, unless paragraph (b) applies; or
 (b) if the regulations prescribe another dollar amount (whether larger or smaller) for the purposes of this paragraph—that other dollar amount.

Division 3—Unsuitability assessment policies