Commonwealth Consolidated Regulations

NATIONAL CONSUMER CREDIT PROTECTION REGULATIONS 2010 - REG 28VG

  (1)   This regulation applies if:

  (a)   a monetary benefit is, or will be, given to a licensee or a representative of a licensee; and

  (b)   the benefit is in relation to a credit service provided by the licensee or representative to a consumer in relation to a credit contract; and

  (c)   the arrangement under which the benefit is payable includes an obligation (the repayment obligation ) to repay all or part of the benefit if the consumer is in default under the credit contract or wholly or partly discharges the credit contract.

  (2)   The clawback requirements in relation to the benefit are:

  (a)   the repayment obligation must not apply for more than 2 years after:

  (i)   for a credit contract under which credit is provided that is not wholly or partly to refinance credit--the first day on which an amount of credit is provided to the consumer under the credit contract; or

  (ii)   for a credit contract under which credit is provided that is wholly or partly to refinance credit--the first day on which an amount of credit is provided to the consumer under the credit contract after the refinanced credit is made available; and

  (b)   the repayment obligation must not require repayment of an amount greater than the benefit given to the licensee or representative; and

  (c)   the consumer must not be subject to an obligation to pay an amount as a result of an amount being required to be repaid under the repayment obligation.