By: Staff Reporter
Minor amendments to the National Consumer Credit Protection Act (NCCP Act) have meant broker referral partners will not need to hold an Australian Credit Licence (ACL) when regulation comes into play from 1 July.
Over the past few weeks, the MFAA has been working with ASIC and the Treasury to ensure that brokers and lenders could work with referrers without those referrers having to be licensed or being required to be a credit representative of a licensee.
Yesterday, the federal minister for financial services, superannuation and corporate law, Chris Bowen MP, confirmed that referral partners would be exempt from having to hold an ACL.
According to Mr Bowen, these changes support current industry practice where non-credit businesses, like community or sporting organisations, refer customers' details to credit and credit assistance providers who may subsequently contact the customer.
The exemption will allow lenders and brokers to continue to obtain new business through existing referrer networks.
"Importantly, lenders and brokers will be able to continue to receive referrals from businesses while consumers remain protected under the National Consumer Credit Laws,” Mr Bowen said.
"However, a person must give their consent before their contact details can be passed on and banks and brokers can follow up such referrals."
The new regulations will also impose conditions and safeguards on referrers and businesses seeking to rely on such referrals, to ensure consumers are not harassed or pressured into credit they are not seeking.
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