ASIC Class Order [CO 14/41] continues the transitional exemption from the requirement for credit providers to give a debtor or lessee written notice of “simple arrangements” to change a credit contract or a consumer lease.

A simple arrangement is any agreement that defers or reduces the obligations of a debtor or lessee for a period of no more than 90 days in a hardship variation.

The class order extends the transitional exemptions in regulations 69A and 69B which provide relief from requirements in the Code for a credit provider or lessor to:

• record the fact that the credit provider and debtor (or lessor and lessee) have agreed to change the contract (or consumer lease) in a hardship variation; and
• provide written notice setting out the particulars of any changes in the terms of the contract (or consumer lease) in the case of simple arrangements.

The exemption commenced on 2 March 2014 and will last until 1 March 2015. It is intended to allow ASIC time to consult with stakeholders to develop an administratively appropriate permanent solution in these circumstances.

UPDATE March 2015: ASIC Class Order [CO 14/41] has been extended to 1 March 2016.