Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) This regulation is made for the following provisions of the Act:
(a) paragraph 114(2)(f) (quote by credit assistance providers for credit contracts);
(b) paragraph 137(2)(f) (quote by credit assistance providers for consumer leases).
(2) The information given by a licensee under paragraph 114(2)(d) or 137(2)(d) of the Act must be described as follows:
(a) for each fee and each charge payable to the licensee that the licensee does not describe under paragraph (b):
(i) identify the fee or charge as a fee or charge payable to the licensee; and
(ii) include a clear explanation of the type of fee or charge; and
(iii) if the fee or charge is not a fixed amount--explain the method used for working out the amount of the fee or charge; and
(iv) if the method mentioned under subparagraph (iii) is expressed as a mathematical formula--include a clear explanation of the formula with the formula; and
(v) include a reasonable estimate of the maximum amount of the fee or charge, expressed as required by paragraph (c); and
(vi) state how frequently the fee or charge is to be paid; and
(vii) describe the circumstances when the fee or charge will or will not be payable; and
Note: A fee payable to a credit representative of a licensee is a fee payable to the licensee.
(b) if the fee or charge is payable to the licensee for payment to another person on the consumer's behalf--for each fee and each charge that the licensee does not describe under paragraph (a):
(i) identify the fee or charge as a fee or charge; and
(ii) include a clear explanation of the type of fee or charge; and
(iii) include a reasonable estimate of the maximum amount of the fee or charge, expressed as required by paragraph (c); and
(c) the maximum amount of each fee or each charge, if known, must be expressed in dollars or, if unknown, in one of the following ways:
(i) as a proportion of the amount borrowed or total rental payments and a dollar amount;
(ii) as a percentage of the amount borrowed or total rental payments and a dollar amount;
(iii) if payable periodically--as a maximum amount for each period and as a maximum amount for the life of the credit contract or consumer lease, both as dollar amounts; and
(d) include a statement that clearly identifies the amounts as a quote.
(3) The quote must include the maximum amount of fees or charges that will be payable by the consumer to another person, whether or not a credit contract or consumer lease is entered into.
(4) The information mentioned in subregulations (2) and (3) must be set out in a way that is easy for the consumer to understand without being required to do any working out or to look elsewhere for additional information.