NATIONAL CONSUMER CREDIT PROTECTION ACT 2009 - SECT 133DE Representations that use the term "reverse mortgage" etc.

NATIONAL CONSUMER CREDIT PROTECTION ACT 2009 - SECT 133DE

Credit service providers

  (1)   A licensee must not, in providing or offering to provide a credit service to a consumer, use either of the following terms (either alone or in combination with other words or letters) in a representation to the consumer about an actual or proposed credit contract or mortgage:

  (a)   the phrase "reverse mortgage";

  (b)   another term (whether or not in English) of similar import to the phrase "reverse mortgage".

Civil penalty:   5,000 penalty units.

Credit providers

  (2)   A licensee that is a credit provider must not use either of the following terms (either alone or in combination with other words or letters) in a representation to a consumer about an actual or proposed credit contract or mortgage:

  (a)   the phrase "reverse mortgage";

  (b)   another term (whether or not in English) of similar import to the phrase "reverse mortgage".

Civil penalty:   5,000 penalty units.

Defence

  (3)   For the purposes of subsections   (1) and (2), it is a defence if:

  (a)   the representation truly represents that a credit contract:

  (i)   is or will be a credit contract for a reverse mortgage; or

  (ii)   is not or will not be a credit contract for a reverse mortgage; or

  (b)   the representation truly represents that a mortgage:

  (i)   is or will be part of a reverse mortgage; or

  (ii)   is not or will not be part of a reverse mortgage.