Changes to Consumer Credit Requirements

Posted on 16 March 2012

For individuals and businesses applying for credit, new obligations as set down by The National Consumer Credit Protection Act (NCCP) come into force shortly for credit service providers. Before entering into an agreement with any organisation offering you credit, it is important to check that the lender is authorised to undertake such a contract.

As of April 1st, 2012 the requirement to display Australian Credit Licence numbers on National Credit Code and NCCP Act documents will commence.

The initials “ACL” will no longer be sufficient and must be replaced by the words “Australian Credit Licence”.

Under Section 52 of the NCCP Act, the holder of an Australian Credit Licence must show it’s ACL number on prescribed documents including the following:-

  • printed advertisements that relate to the provision of regulated credit
  • documents required to be created, produced, given or published under the Code (eg NCC notices, credit contracts, mortgages, guarantees).
  • documents lodged with ASIC that relate to the provision of regulated credit including flyers, billboards, ‘boxed out’ advertisement in a newspaper and words or pictures that amount to more than a mere listing in the white pages or yellow pages.

Whilst there is no specific requirement for credit representatives to show their credit representative number except in Credit Guides (s158(2) NCCP Act) they must display in full “Credit Representative Number” and not the abbreviation CR.