In short
Credit licence documents cover the disclosure obligations and compliance framework required of an Australian Credit Licence (ACL) holder under the National Consumer Credit Protection Act 2009 (Cth), principally the Credit Guide given to consumers before providing credit assistance or acting as a credit provider, alongside the responsible lending assessment records and complaints and hardship processes the NCCP Act mandates. Errors here expose the licensee to civil penalties and, in serious cases, ASIC banning action.
The Credit Guide and why it's more prescriptive than an FSG
The Credit Guide, required under sections 126 and 158 of the National Consumer Credit Protection Act 2009 (Cth), has to be given to a consumer before credit assistance is provided or before a credit contract is entered into, and its content is more tightly prescribed than an FSG: licensee identity and ACL number, the fees and commissions the licensee or credit representative will or may receive, and details of the licensee's internal and external dispute resolution scheme including AFCA membership. Because the NCCP regime is consumer-protection focused rather than disclosure-based in the way the Corporations Act treats wholesale clients, there's no wholesale carve-out — every consumer credit transaction requires the guide, regardless of the sophistication of the borrower.
We draft the Credit Guide alongside the licensee's actual fee schedule and commission arrangements with credit providers or aggregators, because a mismatch between guide and practice is one of ASIC's standard surveillance checks for mortgage broking and consumer lease businesses.
Responsible lending — the obligation that drives most disputes
Sections 128 to 133 of the NCCP Act require a licensee to make reasonable inquiries about a consumer's requirements, objectives and financial situation, take reasonable steps to verify that financial situation, and assess whether the credit contract is 'not unsuitable' before it's entered into or a recommendation is made. Most consumer credit disputes we see aren't about disclosure — they're about whether the responsible lending assessment was properly documented and whether the verification step actually happened, or was a rubber stamp on numbers the borrower supplied. We build the assessment record template as a structured, retained document precisely because the burden in a later dispute or ASIC inquiry falls on the licensee to prove the assessment was made, not on the consumer to prove it wasn't.
Hardship, default notices and the interaction with the Credit Guide
Licensees dealing in consumer credit also need documented hardship variation procedures under section 72 of the National Credit Code, and default notice procedures that comply with section 88, both of which have to be cross-referenced in the Credit Guide's complaints section so consumers know these avenues exist before they're ever needed. Where a licensee acts as both credit provider and credit assistance provider (common in mortgage broking groups with an aligned lender), the documents need to clearly separate which entity is providing which service at each stage, because liability and disclosure obligations attach differently to each role.
Credit representative agreements
Where credit assistance is delivered through credit representatives rather than employees, the credit representative agreement mirrors many of the concerns in an AFSL authorised representative agreement — scope of authorisation, supervision, commission structures — but with NCCP-specific obligations layered in, including the representative's own responsible lending conduct and the licensee's ongoing obligation to monitor and supervise that conduct under its own licence conditions.
What we deliver
A Credit Guide matched to the licensee's actual fee and commission structure, a responsible lending assessment template built for the specific credit products offered, and hardship and default procedures that satisfy the National Credit Code and cross-reference correctly into the Credit Guide.
What the fixed fee covers
- Credit Guide compliant with sections 126 and 158 of the NCCP Act
- Responsible lending assessment and verification record template
- Hardship variation procedure aligned to section 72 of the National Credit Code
- Default notice procedure aligned to section 88
- Credit representative agreement (where applicable)
- Complaints (IDR/EDR) disclosure matched to AFCA membership
Mistakes we see
- Credit Guide fee disclosure that doesn't match actual commission or brokerage arrangements
- Responsible lending assessments that record conclusions without evidencing verification steps
- Treating a business loan as exempt from NCCP without properly assessing the predominant purpose test
- No documented hardship process, leaving front-line staff to handle requests ad hoc
- Credit representative agreements copied from an AFSL template without NCCP-specific obligations
Who this is for
- Mortgage and finance broking businesses
- Consumer lease and buy-now-pay-later providers
- Non-bank lenders holding an ACL
- Businesses appointing credit representatives
Frequently asked questions
- Do business loans need a Credit Guide?
- Only if the credit is provided wholly or predominantly for personal, domestic or household purposes, or for residential investment property in certain cases, which brings it within the National Credit Code. Genuinely commercial lending falls outside the NCCP regime, but the predominant purpose test is fact-specific and worth checking before assuming an exemption applies.
- What documentation actually proves a responsible lending assessment was done?
- A dated record showing what inquiries were made, what verification documents were obtained and reviewed (payslips, bank statements, existing liabilities), and the reasoning connecting that information to the 'not unsuitable' conclusion. A checklist with ticked boxes and no supporting detail is generally not sufficient if the assessment is later challenged.
- How does this interact with an AFSL if we hold both licences?
- The two regimes are administered separately, so a dual licensee needs both an FSG and a Credit Guide, and needs to keep the disclosure and compliance documents for each business line distinct even where the same staff deliver both services, because the content requirements and remedies differ.
- What are the consequences of a responsible lending failure?
- Civil penalties under the NCCP Act, potential compensation orders to the consumer, and in serious or repeated cases ASIC can suspend or cancel the licence or ban individuals from engaging in credit activities. Courts have also allowed responsible lending failures to be raised as a defence or set-off in debt recovery proceedings.
- Do credit representatives need their own ACL?
- No, a credit representative operates under the licensee's ACL rather than holding their own, similar to an authorised representative under an AFSL, but the licensee remains responsible for the representative's conduct and must supervise and monitor it accordingly.
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