Draft Regulations for Affordability Assessment were published on 1 August 2014.
The Regulations also provide for matters relating to:
- The function and conduct of matters before the National Consumer Tribunal.
- Registration and conduct of payment distribution agents.
- Credit information to be submitted, held and removed at the credit bureaux.
- Training requirements for payment distribution agents, credit providers and debt counsellors.
The proposed affordability regulations introduce a number of new definitions in respect of affordability assessment and are stated to apply to current, perspective and joint consumers, all credit providers and all credit agreements to which the Act applies subject to exception.
The Regulations also require:
- That credit providers take practical steps to assess the consumers’ income status.
- Utilise verifying documentation and credit bureaux profile.
- Introduce the concept of a credit cost multiple, which is required to be disclosed together with the total cost of credit.
- That a prescribed questionnaire be completed by consumers applying for credit in certain circumstances.
Written comments to the draft Regulations should be submitted within 30 days from the publication date of the notice.