Commonwealth Consolidated Acts Commonwealth Consolidated ActsRequirement
(1) A licensee must not enter into, or offer to enter into, a credit card contract under which the licensee would be the credit provider, if the consumer who would be the debtor under the contract would not have a credit limit reduction entitlement under the contract.
Civil penalty: 5,000 penalty units.
Offence
(2) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 50 penalty units.
Meaning of credit limit reduction entitlement
(3) A consumer who is the debtor under a credit card contract has a credit limit reduction entitlement under the contract if:
(a) for a contract that does not provide for a minimum credit limit--the consumer is entitled under the contract to reduce the credit limit of the contract to any amount (including nil); or
(b) for a contract that provides for a minimum credit limit--the consumer is entitled under the contract to reduce the credit limit of the contract to any amount that equals, or exceeds, the minimum credit limit.