On 5 September, ASIC created ASIC Credit (Unsuitability – Credit Cards) Instrument 2018/753, which prescribes a three-year period to be used by banks and credit providers when assessing a new credit card contract or credit limit increase for consumers.

The legislative instrument was accompanied by the release of Report 590 Response to submissions on CP 303 Credit cards: Responsible lending assessments, which highlights the key issues that arose out of the submissions received on the consultation paper and details ASIC’s responses to those issues.

The new legal requirement commences on 1 January 2019.  ASIC states that credit providers are expected to have systems in place to ensure that that they can meet the new obligations.