28EProposal disclosure document—information about fees and charges

#### 28E Proposal disclosure document—information about fees and charges (1) This regulation is made for the following provisions of the Act: (a) paragraph 121(2)(f) (credit proposal disclosure document of credit assistance providers for credit contracts); (b) paragraph 144(2)(e) (lease proposal disclosure document of credit assistance providers for consumer leases). (2) The information given by a licensee under paragraph 121(2)(a) or 144(2)(a) of the Act must be described as follows: (a) for each fee and each charge payable to the licensee: (i) identify the fee or charge as a fee or charge payable to the licensee; and (ii) include a clear explanation of the type of fee or charge; and (iii) if the fee or charge is not a fixed amount—explain the method used for working out the amount of the fee or charge; and (iv) if the method mentioned under subparagraph (iii) is expressed as a mathematical formula—include a clear explanation of the formula with the formula; and (v) include the amount of the fee or charge, expressed as required by paragraph (b); and (vi) state how frequently the fee or charge is to be paid; and (vii) describe the circumstances when the fee or charge will or will not be payable; and Note: A fee payable to a credit representative of a licensee is a fee payable to the licensee. (b) the amount of each fee or charge must be expressed in one of the following ways: (i) in dollars; (ii) as a proportion of the amount borrowed or total rental payments, expressed in dollars; (iii) as a range of amounts, expressed in dollars; (iv) as a percentage of the amount borrowed or total rental payments and a dollar amount. (3) The information given by a licensee, for the credit provider or lessor, and any other person about whom information must be given, under paragraphs 121(2)(c) and (d), or 144(2)(c) and (d), of the Act, must be described as follows: (a) for each fee and each charge payable to the credit provider, lessor or other person: (i) name the person to whom the fee or charge is payable personally or on behalf of another person; and (ii) identify the fee or charge as a fee or charge; and (iii) include a clear explanation of the type of fee or charge; and (iv) if the fee or charge is not a fixed amount—explain the method used for working out the amount of the fee or charge; and (v) if the method mentioned under subparagraph (iv) is expressed as a mathematical formula—include a clear explanation of the formula with the formula; and (vi) if the amount of the fee or charge is a reasonable estimate of the fee or charge—state that it is an estimate, and express the amount as required by paragraph (b); and (vii) state how frequently the fee or charge is to be paid; and (viii) describe the circumstances when the fee or charge will or will not be payable; and (b) the reasonable estimate of the amount of each fee or charge must be expressed in one of the following ways: (i) in dollars; (ii) as a proportion of the amount borrowed or total rental payments and a dollar amount; (iii) as a range of amounts, expressed in dollars; (iv) as a percentage of the amount borrowed or total rental payments and a dollar amount. (4) The licensee’s proposal disclosure document must clearly state that the consumer will be liable to pay the fees and charges. (5) The information mentioned in subregulations (2) to (4) must be set out in a way that is easy for the consumer to understand without being required to do any working out or to look elsewhere for additional information.