2002

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Ms Kerrie Tucker)

An Act to amend the Fair Trading Act 1992

The Legislative Assembly for the Australian Capital Territory enacts as follows:

This Act is the Fair Trading Amendment Act 2002.

This Act commences on the day after its notification day.

This Act amends the Fair Trading Act 1992.

credit card means any article commonly known as a credit card, and includes any article by the use of which—

(a) money may be borrowed under an agreement between the lender and the borrower; and

(b) a person may obtain, on credit, goods or services, whether from the issuer of the credit card or someone else.

(1) A credit provider must not enter into a credit contract with a debtor unless the credit provider has carried out a satisfactory assessment process.

(2) A credit provider must not increase the amount of credit available under a credit contract unless—

(a) the debtor has requested the increase in writing, or the credit provider has offered the debtor the increase and the debtor has accepted the offer in writing; and

(b) the credit provider has carried out a satisfactory assessment process.

(3) In this section:

credit contract—see the Consumer Credit (Australian Capital Territory) Code, section 5 (Meaning of credit contract)

credit provider, in relation to a credit contract, means a person who provides credit under the credit contract in the course of a business of providing credit or as part of or incidentally to any other business of the credit provider, and includes a prospective credit provider.

debtor means a person (other than a guarantor) who is liable to pay for (or to repay) credit, and includes a prospective debtor.

satisfactory assessment process, in relation to a debtor, means an assessment of the debtor’s financial situation sufficient to satisfy a diligent and prudent credit provider that the debtor has a reasonable ability to repay the amount of credit provided or to be provided.

1 For the latest republications of amended laws, see www.legislation.act.gov.au.