69GMeaning of low cost credit contract—fees or charges

#### 69G Meaning of low cost credit contract—fees or charges (1) For the purposes of paragraph 13E(1)(d) of the Code, this regulation prescribes requirements relating to fees or charges that are, or may be, payable under a contract (the relevant contract) entered into, or to be entered into, between a credit provider and a debtor. (2) The fees or charges that are, or may be, payable under the relevant contract satisfy the requirements in this regulation if those fees or charges could not result in a breach of a cap applicable under this regulation to the credit provider and the debtor in a fee period. > Note: For the definition of fee period, see subregulation (4). (3) A breach of a cap applicable to the credit provider and the debtor in a fee period occurs if the sum of all the fees or charges of a kind specified in column 1 of an item of the following table that become payable in the fee period under: (a) the relevant contract; and (b) any other low cost credit contract between the credit provider and the debtor; exceeds the cap determined for that kind of fees or charges for the fee period under column 2 of that table item. | Item | Column 1Kind of fees or charges | Column 2Cap | | ---- | -------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | 1 | Fees or charges other than default fees or charges | (a) for the first fee period for the credit provider and the debtor—$200; or(b) otherwise—$125. | | 2 | Default fees or charges | (a) unless paragraph (b) applies—$120; or(b) if only default fees or charges are, or may be, payable under the relevant contract and each other low cost credit contract between the credit provider and the debtor:(i) for the first fee period for the credit provider and the debtor—$320; or(ii) otherwise—$245. | Definitions (4) In this regulation: > fee period, for a credit provider and a debtor, means any of the following: (a) the period of 12 months beginning on the later of: (i) the earliest day on which the debtor ever became a debtor under a low cost credit contract with the credit provider; and (ii) the day on which the delayed commencement time (within the meaning of item 8 of Schedule 2 to the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024) occurred; (b) each subsequent 12 month period.