Today, ob体育 released Consultation Paper 354 ob体育 relief for simple arrangements following a hardship notice: [CO 14/41] (CP 354) seeking feedback on whether to extend the written notice exemption for credit providers and lessors who enter into simple arrangements with consumers in hardship.
ob体育 currently provides relief to industry in which is due to expire on 1 March 2022. The class order relieves credit providers and lessors from the obligation to provide written notice to consumers about hardship contract variations of 90 days or less (known as 鈥榮imple arrangements鈥�).
ob体育 invites submissions on whether [CO听14/41] continues to form a useful part of the regulatory framework, including:
- how frequently credit providers and lessors rely on [CO 14/41]
- the impact on consumers if relief is extended or expires, and
- the regulatory or commercial impact of extension or expiry of [CO 14/41].
Submissions on CP 354 are due on 1 February 2022.
Background
ob体育 is the national regulator for consumer credit and consumer leases under the national credit legislation.
Under the National Credit Code, a consumer experiencing financial difficulties may notify their credit provider/lessor that they are unable to meet their repayment obligations (i.e. a hardship notice). The credit provider/lessor must respond by either agreeing to or declining to change the contract and provide written notification to the consumer about their decision.
The exemption from the written notification requirement for simple arrangements was introduced in 2013 following changes to the hardship provisions of the National Credit Act.
ob体育's Moneysmart website has guidance for consumers on .
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CP 354 ob体育 relief for simple arrangements following a hardship notice: [CO 14/41]
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