|A new national credit law: Does it apply to you?|
Getting registered and licensed
Written records and responsible lending
What if the National Credit Act does not apply to the book up you offer?
‘Consumer friendly’ book up
|Case study: Book up for travel|
A regional airline provides a book up service for customers who use air travel. It charges a 10% fee on the total book up amount and deducts payments every fortnight on the day the customer is paid, with the repayment period exceeding 62 days.
The National Credit Act applies to this book up service. If the airline intends to continue providing book up on the same terms, it must be registered with ASIC or apply for a credit licence, unless it is authorised as a representative of another registered person or licensee.
The airline must also provide customers with appropriate written records and comply with the responsible lending provisions.
|Know what laws apply