NCCP Written assesment that a credit contract is not unsuitable

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The credit assistance provider must, if requested, provide the consumer with a copy of the assessment that the credit contract is ‘not unsuitable’. This must be free of charge.

This will require records of the assessments to be documented in a form that allows the credit assistance provider to provide a copy of the assessment promptly and in writing.

The National Credit Act sets out the applicable timeframes in which this must be provided to the consumer (s120, 132, 143 and 145).

What information should be included in the written assessment

The written assessment should include a record of any factual information provided by the consumer which was used to assess the credit contract as unsuitable, including the consumer’s requirements and objectives.

This will cover information specifically related to the statutory concepts of:

  • requirements and objectives
  • reasonable inquiries
  • capacity to repay

The consumer should be given the opportunity to check this information to ensure that any inaccurate information is corrected.

You are not expected to disclosure commercially sensitive lending criteria on which credit decisions are based.

ASIC expect that the written assessment will be concise, easy to understand and assist the consumer understand why the credit contract has been assessed as ‘not unsuitable’. The written assessment will also aid in demonstrating compliance with the responsible lending obligations.

Circumstances where you do not have to provide a written assessment

As a credit provider you do not have to provide a consumer with a copy of the written assessment if you do not provide credit assistance to the consumer.

 

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