National Consumer Credit Protection Act 2009

The National Consumer Credit Protection Act 2009 (CP Act) is an Australian Federal law, passed on 15 December 2009. It came into force on 1 April 2010.[1]

Responsible lending and unconscionable conduct

The Act establishes a national regulatory framework for consumer credit, including obligations on lenders to engage in responsible lending practices. These obligations require lenders to assess whether a credit contract is unsuitable for a consumer, taking into account their financial situation and objectives.[2]

The legislation also interacts with broader protections against unconscionable conduct under Australian law, particularly in circumstances where there is a significant imbalance in bargaining power between lenders and borrowers. Regulatory guidance and case law have examined the conduct of both traditional and non-bank lenders in situations where consumers may be placed in financially vulnerable positions.[3][4][5]

References

  1. ^ National Consumer Credit Protection Act 2009 - comlaw.gov.au
  2. ^ "Responsible lending". Australian Securities and Investments Commission. Retrieved 4 May 2026.
  3. ^ "RG 209 Credit licensing: Responsible lending conduct". Australian Securities and Investments Commission. Retrieved 4 May 2026.
  4. ^ "Federal Register of Legislation". Australian Government. Retrieved 4 May 2026.
  5. ^ "Non-bank lenders accountability and unconscionable conduct". Brander Smith McKnight. Retrieved 4 May 2026.
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