The corporate regulator has set a three-year period on credit card responsible lending assessments.
The Australian Securities and Investments Commission (ASIC) said that this is to ensure that consumers have ‘reasonable’ access to credit in credit card contracts but at the same time ensuring that consumers are protected from unsuitable credit card contracts.
ASIC said that the requirement will come into effect in January of next year and this will apply to all classes of credit cards.
The regulator recently released from REP 590 Response to submissions on CP 303 Credit Cards: Responsible lending assessments.
ASIC has indicated that it will monitor the three-year period and their own guidance to ensure that is having the desired outcomes.