The National Consumer Credit Protection Amendment Regulation 2012 (No. 1) was registered on 18 June 2012.

Schedule 1 contains changes to the prescribed home loan key facts sheet form which must be implemented by 1 October 2012. [Background ]

Schedule 2 clarifies the new credit card rules including:

• when the new credit card fact sheet requirements commence;
• permitting alternative methods for providing customers with a credit card Key Facts Sheet when a customer applies for a credit card online;
• how credit card providers may obtain the consent of a consumer to send credit limit increase invitations;
• an exemption from the requirement to include a Minimum Repayment Warning when credit card balances are low; and
• clarifying that the requirement to provide a Minimum Repayment Warning in a statement of account applies only to credit card contracts.

There is a transitional period until 1 October 2012.

Cards sent before 1 July
The requirement in section 133BD of the Credit Act which requires credit card providers to provide consumers with a credit card Key Facts Sheet before they enter (or offer to enter) into a contract does not apply if credit card providers provide the credit card to the consumer prior to 1 July 2012. For the purposes of regulation 25M and existing regulation 25K, ‘provides’ is taken to mean when a credit card or document is dispatched by lenders, as opposed to when it is received by consumers (for
example, the date the credit card was posted rather than when it was received by the consumer).

Electronic application forms
There is a new provision relating to application forms in electronic form (whether an online document, in an email, or as an attachment to an email) permitting, as part of the electronic form, a hyperlink to a Key Facts Sheet for the contract.

Obtaining the consent of a consumer to send credit limit increase invitations
Under section 133BF of the Credit Act, a credit card provider must gain the express consent of a consumer to be able to send them credit limit increase invitations. The request for consent from the credit provider must be by way of written communication. Paragraph 28LI(1)(a) of the Principal Regulations currently requires the written communication to only contain the request for consent in relation to whether or not to receive credit limitations. This limitation is removed so that the credit card provider can seek consent to other matters. However, each matter must be consented to separately.

Notifying excess of credit card limit
When a consumer has exceeded their credit card limit, the credit card provider must take reasonable steps to notify the consumer of that matter no later than two business days after becoming aware of the use of the card in excess of the limit. For the purposes of this regulation ‘notify’ is taken to mean that steps have been taken to notify the consumer, not necessarily that the consumer has received the notification within the time period.

Credit Card Minimum Repayment Warning
The Regulations exempt credit card providers from the requirement to provide a credit card Minimum Repayment Warning if the outstanding balance on the statement is $50 or less, there is no outstanding balance, or where account holder makes regular repayment under a special arrangement (such as under a hardship arrangement). It also clarifies that the requirement to provide the Minimum Repayment Warning applies only to a statement of account for a credit card contract (and therefore not to other statements of accounts such as debit card accounts). The wording in the Minimum Repayment Warning has also been modified.

Credit Card Key Facts Sheet
The text in the final panel of the box must now inform consumers that they can only be charged a fee for exceeding their credit limit if they separately agree to being charged that fee. The lender may elect to disclose a phone number.