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ISCOVER
Staff Reporter
The Australian Securities and Investments Commission (ASIC) has updated Information Sheet 105 Dealing with consumers and credit to help the industry meet new hardship obligations under the National Consumer Credit Protection Act 2009.
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Under the new obligations, credit providers have set timeframes in which to respond to a hardship notice from a consumer, based on whether they request further information from a consumer or not.
The update clarifies for credit providers when they are required to make a decision about whether a hardship variation is granted, particularly if there is a delay by the consumer in providing the information required to make a decision.
“Access to proper and timely consideration of the need for hardship relief when in financial difficulty is an important consumer right, and ASIC is keen to ensure that the obligations on lenders in this area are clear and well understood,” ASIC deputy chairman Peter Kell said.
The hardship obligations under the Consumer Credit Legislation Amendment (Enhancements) Act 2012 apply to new credit contracts from 1 March 2013.
