As well as increasing the penalties for certain civil and criminal offences in the Credit Act the Treasury Laws Amendment (Strengthening Corporate And Financial Sector Penalties) Act 2018 (See new penalties here), also amends the National Credit Act and National Credit Code to:

• clarify that prescribed key requirement provisions in the Credit Code can be subject to infringement notices; and
• impose new civil penalty provisions for breaches of a number of provisions in the Credit Act and Credit Code.

Importantly, the Act also introduces, for the first time, a civil penalty (capped at $525 million) for breach of the general conduct obligations of credit licensees including ‘to do all things necessary to ensure that the credit activities authorised by the licence are engaged in efficiently, honestly and fairly’.

UPDATE: The Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Regulations 2019 commenced on 26/03/2019

The civil penalty provisions now include:

Credit Act
Section 47: General obligations for a credit licensee (such as to act efficiently, honestly and fairly).
Credit Code
Section 24: A credit provider must not enter into a credit contract on terms imposing a prohibited monetary liability.
Section 39B(1): If there is a default under a small amount credit contract, the amount that can be recovered must not exceed an amount that is twice the adjusted credit amount.
Section 154: A person must not make false or misleading representation.
Section 155: A person must not harass a person to get them to apply for credit or enter into a credit contract.
Section 156(1): A person must not visit another person’s home for the purposes of inducing that person to apply for a credit contract.
Section 174(3): Consumer leases must contain certain disclosures.
Section 179U: A person must not make false or misleading representation in relation to consumer leases.
Section 179V: A person must not harass a person to get them to apply for a consumer lease.

The Infringement notice provisions now include:

Credit Act
Section 31(1): Prohibition on conducting business with unlicensed persons.
Section 70(1): Obligation to vary or revoke authorisation that ceases to have effect.
Section 124A(1): Prohibition on providing credit assistance in relation to short-term credit contracts.
Section 124B(1): Licensee who makes representations about credit assistance in relation to small amount credit contracts must display information etc.
Section 133AC(2): Credit provider’s website to provide capacity to generate Key Facts Sheet.
Section 133AD(2): Credit provider to provide Key Facts Sheet in other Situations.
Section 133AE(2): Requirement to give consumers more information.
Section 133BC(1): Application form for credit card contract to include up-to-date Key Facts Sheet.
Section 133BD(1): Credit provider not to enter into credit card contract unless Key Facts Sheet has been provided etc.
Section 133BG(1): Records of consents and withdrawals to be kept
Section 133BH(3): Credit provider to notify consumer of use of credit card in excess of credit limit.
Section 133BJ(1): Records of consents and withdrawals to be kept.
Section 133CA(1): Prohibition on entering, or increasing the credit limit of, short-term credit contracts.
Section 133CB(1): Licensee who makes representations about small amount credit contracts must display information etc.
Section 133CC(1): Licensee must not enter into a small amount credit contract if the repayments do not meet the prescribed requirements.
Section 133DB(1): Giving projections of equity before providing credit assistance or entering credit contract.
Section 133DC(2): Making reverse mortgage information statement available on website of credit provider or credit assistance provider.
Section 133DD(2): Making reverse mortgage information statement available in other situations.
Section 133DE(1) and (2): Representations that use the term “reverse mortgage” etc.
Section 160B(1): “Independent”, “impartial” or “unbiased” etc.
Section 160C(1): “Financial counsellor” etc.
Section 160E(2) and (3): Requirements for giving authorisation to employer.

Credit Code
Sections 17(3), (4), (5), (6), (8), (9), (11), (15) and (15A): Matters that must be in contract document.
Section 23(1): Prohibited monetary obligations.
Section 24: A credit provider must not enter into a credit contract on terms imposing a monetary liability.
Section 32A: Prohibitions relating to credit contracts if the annual cost rate exceeds 48 per cent.
Section 39B: Limit on amount that may be recovered if there is a default under a small amount credit contract.
Section 32AA(2): Prohibitions relating to credit contracts if the annual cost rate exceeds 48 per cent.
Section 34(6): Information to be contained in statements of account.
Section 35(1): Opening balance must not exceed closing balance of previous Statement.
Section 72(4): Changes on grounds of hardship.
Section 177B(4): Changes on grounds of hardship.