Responsible lending...what does it mean?
The responsible lending obligations (currently in the draft legislation) will apply to all ACL holders. Your obligations will vary depending on whether you provide credit or provide credit assistance.
The obligations include requirements to:
- make reasonable enquiries as to the consumer's financial circumstances and objectives;
- assess the consumer’s unsuitability; and
- provide the consumer with a credit guide.
We've included a mind map which is our 1-page summary of the responsible lending requirements. Click on the diagram to download it.
ASIC’s draft guidance in the form of Consultation paper 115 is open for comment until 28 October 2009.
For more information and to view the Consultation Paper in full, go to ASIC’s credit website at: http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/ASIC%20guidance%20on%20credit#
Responsible lending...what does it mean? by Holley Nethercote Commercial Lawyers is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 2.5 Australia Licence.
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