National Consumer Credit Protection Amendment Regulation 2012 (No. 1)1
Select Legislative Instrument 2012 No. 117
I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulation under the National Consumer Credit Protection Act 2009.
Dated 14 June 2012
QUENTIN BRYCE
Governor-General
By Her Excellency’s Command
WAYNE SWAN
Treasurer
Contents
1 Name of regulation 2
2 Commencement 2
3 Amendment of National Consumer Credit Protection Regulations 2010 2
4 Amendment of National Consumer Credit Protection Regulations 2010 2
Schedule 1 Amendments commencing on day after registration 3
Schedule 2 Amendments commencing on commencement of National Consumer Credit Protection Amendment Regulations 2011 (No. 6) 8
1 Name of regulation
This regulation is the National Consumer Credit Protection Amendment Regulation 2012 (No. 1).
2 Commencement
This regulation commences as follows:
(a) on the day after it is registered—sections 1 to 3 and Schedule 1;
(b) on the commencement of the National Consumer
Credit Protection Amendment Regulations 2011 (No. 6)—section 4 and Schedule 2.
3 Amendment of National Consumer Credit Protection Regulations 2010
Schedule 1 amends the National Consumer Credit Protection Regulations 2010.
4 Amendment of National Consumer Credit Protection Regulations 2010
Schedule 2 amends the National Consumer Credit Protection Regulations 2010.
Schedule 1 Amendments commencing on day after registration
(section 3)
[1] After paragraph 28LB (2) (c)
insert
(ca) the text in the second row of the ‘Estimated cost of this home loan’ box must be black on a light blue background;
[2] After Part 6‑2
insert
Part 6‑3 Transitional arrangements
49A Transitional—Schedule 1 to National Consumer Credit Protection Amendment Regulation 2012 (No. 1)
(1) This regulation applies if, during the period commencing on the commencement of this regulation and ending on 1 October 2012, a document complies with the requirements for a Key Facts Sheet set out in Schedule 5 as in force immediately before the commencement of Schedule 1 to the National Consumer Credit Protection Amendment Regulation 2012 (No. 1).
(2) The document is taken, during that period, to be a Key Facts Sheet that complies with Schedule 5 as amended by Schedule 1 to the National Consumer Credit Protection Amendment Regulation 2012 (No. 1).
[3] Schedule 5, Part 1
omit
Interest rate
5 [variable interest rate] per annum
[fixed interest rate] per annum fixed for [number] years, then a variable rate currently [variable interest rate] per annum
[variable interest rate] per annum for [number] years, then [discount interest rate] per annum
[introductory interest rate] per annum for [number] years, then a variable rate currently [variable interest rate] per annum
insert
Interest rate
5 [variable interest rate] per annum
[fixed interest rate] per annum fixed for [number] years, then a variable rate currently [variable interest rate] per annum
[variable interest rate] per annum variable for [number] years, then a [*fixed/*variable/*discount interest rate] per annum
* Delete whichever is not applicable
[*fixed/*variable] [introductory interest rate] per annum for [number] years, then a variable rate currently [variable interest rate] per annum
* Delete whichever is not applicable
[4] Schedule 5, Part 1
omit
This means you will pay back
[amount] for every $1 borrowed 8
insert
This means you will pay back
[amount] for every $1 borrowed 8
[5] Schedule 5, Part 1
omit
valuation fees
insert
valuation fees 16A
[6] Schedule 5, Part 1
omit
18 What happens at the end of the fixed rate period?
At the end of the fixed rate period you may be able to fix the rate at a new fixed interest rate for a further period. If a further fixed rate is not entered into, the rate will convert to the applicable variable interest rate. Under the current variable interest rate, if interest rates do not change, your monthly repayment would [increase/decrease] by around [change in repayment]
18 What happens if interest rates increase?
This is a variable rate loan. If your interest rate was to increase by 1% per annum, your monthly repayment would increase by around [change in repayment 2]. 19
This is a fixed rate loan. Your repayments will not change during the fixed rate period. After the fixed rate period, if the variable interest rate was to increase by 1% per annum, from the current variable interest rate of [variable interest rate], your monthly repayment would increase by around [change in repayment]. 18
insert
18 What happens at the end of the fixed rate period?
At the end of the fixed rate period you may be able to fix the rate at a new fixed interest rate for a further period. If a further fixed rate is not entered into, the rate will convert to the applicable variable interest rate. Under the current variable interest rate, if interest rates do not change, your monthly repayment would [increase/decrease] by around [change in repayment]. 19
At the end of the fixed rate period, the rate will convert to the applicable variable interest rate. Under the current variable interest rate, if interest rates do not change, your monthly repayment would [increase/decrease] by around [change in repayment]. 19
18 What happens if interest rates increase?
This is a variable rate loan. If your interest rate was to increase by 1% per annum, your monthly repayment would increase by around [change in repayment 2]. 19
This is a fixed rate loan. Your repayments will not change during the fixed rate period. After the fixed rate period, if the variable interest rate was to increase by 1% per annum, from the current variable interest rate of [variable interest rate], your monthly repayment would increase by around [change in repayment]. 19
[7] Schedule 5, Part 2, clause 2.1, after note 16
insert
16A Omit the reference to valuation fees if:
(a) a credit provider charges a valuation fee in all cases; and
(b) the amount of the valuation fee is included in the amount for establishment fees mentioned in the Key Fact Sheet.
[8] Schedule 5, Part 2, clause 2.1, note 18
substitute
18 Omit this section if:
(a) the interest rate will be fixed for the entire term of the loan; or
(b) the loan is a variable rate loan for which a fixed interest rate component is not available after the initial fixed rate period expires.
Schedule 2 Amendments commencing on commencement of National Consumer Credit Protection Amendment Regulations 2011 (No. 6)
(section 4)
[1] After regulation 25L
insert
25M Modification—credit card provided before 1 July 2012
For paragraph 164 (d) of the Act, the provisions of the Act to which Part 3‑7 of the Act applies apply as if section 133BD were modified by adding the following subsection after subsection 133BD (2):
‘(3) Subsections (1) and (2) do not apply if:
(a) a consumer applies to a licensee for a credit card; and
(b) the licensee provides a credit card to the consumer before 1 July 2012.’.
[2] After regulation 28LFA
insert
28LFB Application forms in electronic form
For subsection 133BC (1) of the Act, if a licensee:
(a) makes available, in an electronic form, an application form that can be used to apply for a credit card contract; and
(b) includes, as part of the electronic form, a hyperlink to a Key Facts Sheet for the contract;
the application form is taken to include a Key Facts Sheet for the contract.
Example of electronic form
A licensee may provide an application form as an online document, in an email, or as an attachment to an email.
Note Subsection 133BC (1) of the Act requires the Key Facts Sheet to contain up-to-date information.
[3] Paragraph 28LI (1) (a)
omit
only
[4] After paragraph 28LI (1) (a)
insert
(aa) may seek the consumer’s consent to one or more other matters, but only in the form of a separate consent from the consumer to each matter; and
[5] After subregulation 28LI (1)
insert
(1A) The consent mentioned in paragraph (1) (a) must relate only to the receipt of credit limit increase invitations.
[6] Subregulations 28LJ (1) and (2)
substitute
(1) For subsection 133BH (1) of the Act, if a consumer who is the debtor under a credit card contract has used a card in excess of the credit limit for the contract, the licensee who is the credit provider under the contract must take reasonable steps to notify the consumer of that matter, not later than 2 business days after becoming aware of the use of the card in excess of the limit.
[7] Subregulation 28LJ (5)
omit
under subregulation (2)
[8] After regulation 49A
insert
49B Transitional—Schedule 2 to National Consumer Credit Protection Amendment Regulation 2012 (No. 1)
(1) This regulation applies if, during the period commencing on
the commencement of this regulation and ending on 1 October 2012, a person complies with a requirement of these Regulations as in force immediately before the commencement of Schedule 2 to the National Consumer Credit Protection Amendment Regulation 2012 (No. 1).
(2) The person is taken, during that period, to have complied
with these Regulations as amended by Schedule 2 to the National Consumer Credit Protection Amendment Regulation 2012 (No. 1).
[9] Subregulation 79B (1)
substitute
(1) For subsection 34 (12) of the Code, a statement of account for a credit card contract must contain the warning and details mentioned in subregulation (2).
(1A) However, the warning and details are not required if:
(a) the outstanding balance shown on the statement is $50 or less; or
(b) there is no outstanding balance; or
(c) a payment arrangement is in effect which replaces the normal monthly minimum payments.
Note If there is an outstanding balance of $50 or less, the licensee may choose to provide the warning and details. In that case, subregulation (3) may affect the content of the warning.
(1B) If the licensee provides the warning and details, they must be shown on the front page of the statement of account.
[10] Subregulation 79B (2), table, column 3, heading
substitute
And you will end up paying an estimated total of interest charges of ...
[11] After subregulation 79B (3)
insert
Note If the time to pay off the closing balance, making only the minimum payment each month, is 2 years or less, the licensee may choose to provide the item for [repayment 2] in the warning.
[12] Subregulation 79B (7), definitions of [late fee] and [penalty interest]
omit
[13] Schedule 6, Part 1, description of credit card
omit
There may be circumstances in which you have to pay other fees. A full list of current fees applicable to this credit card can be obtained from [web address for lender’s fees page].
For more information on choosing and using credit cards visit the ASIC consumer website at www.moneysmart.gov.au
The information on this sheet may be out of date. To confirm this information is correct you may wish to visit [web address for lender’s website].
insert
There may be circumstances in which you have to pay other fees. You can only be charged a fee for exceeding your credit limit if you separately agree to being charged that fee 4. A full list of current fees applicable to this credit card can be obtained from [web address for lender’s fees page].
For more information on choosing and using credit cards visit the ASIC consumer website at www.moneysmart.gov.au
The terms on which this credit card is offered can change over time. You can check if any changes have been made by visiting [web address for lender’s credit card Key Facts Sheet page] or by contacting us on [lender’s contact phone number] 5.
[14] Schedule 6, Part 1, after note 3
insert
4 This sentence may be omitted if it is not relevant or applicable to the credit card contract.
5 The licensee may provide both a web address and a phone number or only one of those contact methods. If the licensee only provides one of those methods, the licensee may omit the phrase that refers to the option that is not provided
Note
1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See www.comlaw.gov.au.
