Commonwealth Numbered Regulations - Explanatory Statements
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NATIONAL CONSUMER CREDIT PROTECTION AMENDMENT REGULATION 2012 (NO. 2) (SLI NO 201 OF 2012)
EXPLANATORY STATEMENT
Select Legislative Instrument 2012 No. 201
Issued by authority of the Treasurer
National Consumer Credit Protection Act 2009
National Consumer Credit Protection Amendment Regulation 2012 (No. 2)
Section 329 of the National Consumer Credit Protection Act 2009 (Credit Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Credit Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Credit Act.
The Consumer Credit Legislation Amendment (Home Loans and Credit Cards) Act 2011 (the Credit Cards Act) amended the Credit Act to introduce a number of reforms to the way in which credit cards are offered and used.
The Regulation amends the National Consumer Credit Protection Regulations 2010 (Principal Credit Regulations) to support the reforms introduced by the Credit Cards Act.
The amendment to the Principal Regulations would allow Australian credit licensees who are credit card providers to accept credit card application forms they have provided to consumers prior to 1 July 2012 which did not include a credit card Key Fact Sheet (KFS). This provides a transitional arrangement in relation to credit card application forms which credit card providers have provided to consumers before the commencement of the requirement on 1 July 2012 that such application forms include a credit card Key Fact Sheet.
Details of the Regulation are set out in the Attachment.
The Credit Act does not specify any conditions that need to be satisfied before the power to make the Regulation may be exercised.
The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The Regulation is in response to requests from industry stakeholders for an appropriate transitional arrangement in relation to credit card applications provided before 1 July 2012 and have been made after targeted industry consultation.
Authority: Section 329 of the
National Consumer Credit Protection Act 2009
ATTACHMENT
Details of the National Consumer Credit Protection Amendment Regulation 2012 (No. 2)
Section 1 - Name of Regulation
This section provides that the name of the Regulation is the National Consumer Credit Protection Amendment Regulation 2012 (No. 2).
Section 2 - Commencement
This section provides that the Regulation commences on the day after it is registered.
Section 3 - Amendment of National Consumer Credit Protection Regulations 2010
This section provides that Schedule 1 amends the National Consumer Credit Protection Regulations 2010 (Principal Credit Regulations).
Schedule 1 - Amendment of National Consumer Credit Protection Regulations 2010
Item [1] allows licensees who are credit card providers to accept, or rely upon credit card applications forms they have provided to consumers prior to 1 July 2012 that did not include a credit card Key Fact Sheet (KFS).
Subsections 133BD(1) and (2) of the National Consumer Credit Protection Act 2009 came into force on 1 July 2012 and require a licensee to not enter into a credit card contract, or offer to enter into the contract unless the consumer's application form includes a credit card KFS.
A problem arises when a licensee has provided a consumer a credit card application before 1 July 2012 with no KFS but:
• the consumer uses that application to apply for the credit card after 1 July 2012; or
• the application is accepted and the consumer receives the credit card but does not use it until after 1 July (i.e. the contract is entered into with the consumer's first use of the card).
This section would provide that subsections 133BD(1) and (2) do not apply if the application is made using an application form provided by the licensee to the consumer before 1 July 2012.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
National Consumer Credit Protection Amendment Regulation 2012 (No. 2)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The purpose of the Legislative Instrument is to provide a transitional arrangement in relation to credit card application forms which credit card providers have provided to consumers before the commencement of the requirement on 1 July 2012 that such application forms include a credit card Key Fact Sheet.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
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