Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

ASIC extends exemption for credit hardship arrangements

meeting customer ta meeting customer ta
Staff Reporter 4 minute read

The corporate watchdog has issued Credit (Amendment) Instrument 2018/114, which amends Class Order 14/41 as it applies to providers of consumer credit and consumer leases.

The newly made instrument extends the exemptions granted under transitional regulations (set out in ss 69A and 69B of the NCCP Regulations 2010) that relieve credit providers and lessors from the obligation to provide a written response to a hardship notice in certain circumstances.

For industry and consumers, this extends the arrangements for credit hardship that are currently in place. It allows flexibility for both sides in dealing with a simple hardship arrangement.

The exemption was due to expire on 1 March 2018 and now extends until 1 March 2020. This will allow ASIC time to continue to consult with the industry and affected stakeholders in relation to the hardship process and the interaction with credit-reporting requirements.

Advertisement
Advertisement

“Where a consumer is experiencing financial difficulties in repaying their loan, a consumer may ask their credit provider to vary or change their loan repayments under the hardship provisions of the National Consumer Credit Protection Act 2010 (National Credit Act),” ASIC said in a statement. 

“The procedures for processing hardship variation applications require credit providers and lessors to record any changes to the contract and provide written notice to the debtor or lessee. This is the case even where the parties come to an agreement for a simple arrangement, which means an agreement that defers or reduces the obligations of a debtor or lessee for a period of no more than 90 days.”

The exemption for simple arrangements was introduced in 2013 following changes to the hardship provisions of the National Credit Act.

ASIC extends exemption for credit hardship arrangements
meeting customer ta
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

PROMOTED CONTENT


meeting customer ta
James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

 

more from the adviser
Greater Bank Newcastle Perm merger

Breaking News

Bank CEO pledges to maintain broker offering following merger

The CEO of Newcastle Permanent has said the lender will continue ...

Money jar

Breaking News

bcu launches $5k cashback offer

The customer-owned bank has released a cashback offer for new and...

RBA

Breaking News

RBA makes cash rate call as lockdown drags on

The central bank has delivered its rate decision for August as th...