Commonwealth Consolidated Acts Commonwealth Consolidated ActsNotifying an affected consumer of a reportable situation
(1) A licensee must take reasonable steps to notify a consumer (the affected consumer ) of a reportable situation in accordance with this section if:
(a) the licensee, or a representative of the licensee, provides or has provided credit assistance to the affected consumer in relation to a credit contract secured by a mortgage over residential property; and
(b) the licensee, or the representative of the licensee, is a mortgage broker; and
(c) there are reasonable grounds to believe that a reportable situation has arisen in relation to the licensee as mentioned in:
(i) paragraph 50A(1)(a) (significant breach of a core obligation); or
(ii) subsection 50A(2) (gross negligence or serious fraud); and
(d) there are reasonable grounds to suspect that:
(i) the affected consumer has suffered or will suffer loss or damage as a result of the reportable situation; and
(ii) the affected consumer has a legally enforceable right to recover the loss or damage from the licensee.
Civil penalty: 5,000 penalty units.
Form and period for giving notice
(2) A notice under this section must:
(a) be given in writing within 30 days after the licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs (1)(a), (b), (c) and (d); and
(b) if ASIC has approved the form in which the notice must be given:
(i) be in the approved form; and
(ii) include the information, statements, explanations or other matters required by the form; and
(iii) be accompanied by any other material required by the form.
(3) A licensee has qualified privilege in relation to a notice given under this section.
(4) A licensee who has qualified privilege under subsection (3) in respect of conduct is also not liable for any action based on breach of confidence in relation to that conduct.