Commonwealth Consolidated Acts

NATIONAL CONSUMER CREDIT PROTECTION ACT 2009 - SECT 133DB

Requirement to give projections

  (1)   Before a licensee makes a preliminary assessment for the purposes of paragraph   115(1)(c) or (2)(a), or an assessment for the purposes of paragraph   128(c), in connection with a credit contract with a consumer for a reverse mortgage, the licensee must:

  (a)   show the consumer in person, or give the consumer in a way prescribed by the regulations, projections that:

  (i)   relate to the value of the dwelling or land that may become reverse mortgaged property, and the consumer's indebtedness, over time if the consumer were to enter into a contract for a reverse mortgage; and

  (ii)   are made in accordance with the regulations by using a website approved by ASIC; and

  (b)   give the consumer a printed copy of the projections; and

  (c)   tell the consumer in person the things (if any) that relate to reverse mortgages and are prescribed by the regulations; and

  (d)   give the consumer a reverse mortgage information statement.

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 person's conduct breaches the requirement.

Criminal penalty:   50 penalty units.

Defences for not giving projections

  (3)   For the purposes of paragraphs   (1)(a) and (b), and of subsection   (2) so far as it relates to either of those paragraphs, it is a defence if the licensee reasonably believes that:

  (a)   another person has:

  (i)   shown the consumer in person projections described in paragraph   (1)(a); and

  (ii)   given the consumer a printed copy of the projections; and

  (b)   the projections are the same, or substantially the same, as those paragraph   (1)(a) requires the licensee to show the consumer.

Note:   For the purposes of subsection   (2), a defendant bears an evidential burden in relation to the matter in subsection   (3) (see subsection   13.3(3) of the Criminal Code ).

  (4)   For the purposes of paragraphs   (1)(a) and (b), and of subsection   (2) so far as it relates to either of those paragraphs, it is a defence if the circumstances prescribed by the regulations exist.

Note:   For the purposes of subsection   (2), a defendant bears an evidential burden in relation to the matter in subsection   (4) (see subsection   13.3(3) of the Criminal Code ).

Defence for not giving reverse mortgage information statement

  (5)   For the purposes of paragraph   (1)(d), and of subsection   (2) so far as it relates to that paragraph, it is a defence if the licensee reasonably believes that another person has given the consumer a reverse mortgage information statement in the last 90 days.

Note:   For the purposes of subsection   (2), a defendant bears an evidential burden in relation to the matter in subsection   (5) (see subsection   13.3(3) of the Criminal Code ).