If you are going to charge a fee for your services to a client (commitment fee/service fee/ and any third party fees) you must provide a quote document to your client, this must be signed by the client prior to submission of the application in order for the quote to be enforceable.
Your credit guide stipulates that if you do charge a fee then you must provide a quote to the client. This document must be prepared, signed and dated with a copy provided to the client. A signed copy needs to be held in Nexus within the attachments tab on the opportunity.
The quote needs to be provided to the client upfront along with the credit guide.
You cannot request payment for credit assistance before credit assistance has been provided.
If you do not charge a fee for service then you do not have to provide the quote to your clients.
The quote template can be generated from the Disclosure Documents tab in Nexus (number 2 in the box). Remember: this does not have to be generated if you are not charging a fee for service.
Note: Credit representatives are permitted to recover the cost of commissions clawed back from clients whose loan was drawn down before 1 January 2021 provided they have a properly signed credit quote from the client agreeing to this.
Credit representatives cannot pass the cost of commission clawbacks to clients in relation to loans drawn down after 1 January 2021, even if the client consents.
If you have any questions relating to this topic contact compliance@connective.com.au
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