full-source-retrieval-0025Document excerpt 25

(1) If a credit representative of a licensee gives a consumer the licensee’s credit guide when acting on behalf of the licensee under Part 3‑1, 3‑2, 3‑3 or 3‑4, the credit representative must at the same time give the consumer the credit representative’s credit guide in accordance with subsection (2).

Civil penalty: 5,000 penalty units.

Exceptions—credit activity relating to low cost credit contracts

(1A) Subsection (1) does not apply if the credit representative gives the consumer the licensee’s credit guide:

(a) for the purpose of satisfying subsection 113(1) in connection with the provision of credit assistance to the consumer in relation a low cost credit contract; or

(b) for the purpose of satisfying subsection 126(1) in connection with entry into a low cost credit contract with the consumer; or

(c) for the purpose of satisfying subsection 127(1) in connection with the assignment to the licensee of rights or obligations of a credit provider under a low cost credit contract.

Form and content of credit guide

(2) The credit representative’s credit guide must:

(a) be in writing; and

(b) be in the form (if any) prescribed by the regulations; and

(c) specify the credit representative’s name and contact details; and

(d) specify the credit representative’s credit representative number; and

(e) give information about:

(i) any fees that are payable by a consumer to the credit representative for acting as a credit representative; and

(ii) any charges that are payable by a consumer to the credit representative for matters associated with acting as a credit representative; and

(iii) the method for working out the amount of the fees and charges; and

(f) give information about:

(i) if there are 6 or fewer licensees for whom the credit representative is a credit representative—the names of those licensees; and

(ii) if there are more than 6 licensees for whom the credit representative is a credit representative—the names of the 6 licensees for whom the credit representative reasonably believes it conducts the most business; and

(iii) the credit activities the credit representative is authorised to engage in on behalf of the licensees referred to in subparagraph (i) or (ii); and

(g) give information about:

(i) any indirect remuneration the credit representative is likely to receive, directly or indirectly, from those licensees; and

(ii) a reasonable estimate of the amounts of that indirect remuneration or the range of those amounts; and

(iii) the method for working out those amounts; and