ASIC is seeking further feedback on its proposed use of its product intervention powers to address significant detriment in relation to continuing credit contracts.
Today's release follows ASIC's earlier consultation through Consultation Paper 330 Using the product intervention power: Continuing credit contracts (CP 330) which was published on 9 July 2020.
CP 330 outlined ASIC's proposal to make an industry wide product intervention order to address concerns of ongoing significant detriment in relation to continuing credit contracts, which involve unreasonably high costs, in excess of the cost caps in the continuing credit exemption in s6(5) of the National Credit Code.
The consultation process
In response to submissions received to CP 330, ASIC has made changes to the proposed product intervention order. These changes involve providing certain exclusions for Buy Now Pay Later arrangements, and for fees charged by licensed providers of non-cash payment facilities that are associated with continuing credit providers.
These changes are set out in detail in the attached addendum to CP 330 and updated draft product intervention order.
ASIC invites stakeholder feedback on these changes. The feedback will help ASIC consider whether, and if so how, to exercise the product intervention power.
