Responsible lending obligations apply to any consumer loans that are for personal, household, or domestic purposes. So, if you have a client who wants to purchase a car for personal use, then NCCP obligations apply.
The normal obligations that apply to a home loan are also required for any personal lending scenario. This means, all Compliance documents – Credit Guide, Quote, Needs Analysis, Preliminary Assessment and Summary of Requirements and Credit Proposal.
You also have the same obligations to collect supporting documentation as you would with a home loan. You have the same requirement to make reasonable enquiries to ensure the loan is not unsuitable and to verify all the information the client submits.
Please remember the level and type of enquiries you make for each client will vary depending upon the circumstances, including the client’s own answers within the enhanced Needs Analysis questionnaire. If during the course of your analysis you uncover matters that may impact a decision to provide credit to that particular client, you may need to make further enquiries to ensure that the product is not unsuitable.
In terms of providing credit assistance for consumer leases, this is defined in Section 8 of the Act, which states...
“a person is providing credit assistance to a consumer if, by dealing directly or indirectly with a consumer in the course of, as part of, or incidentally to, a business carried on this jurisdiction by the person, the person:
- suggests and/or assists the consumer apply for a particular consumer lease with a particular lessor; or
- suggests that the consumer remain in a particular consumer lease with a particular lessor.”
When you create a new opportunity in Mercury, select ‘Asset Finance’ as the opportunity type, the Compliance Wizard box will appear providing you with the tailored compliance documents in sequence order.
Mercury Nexus- Asset Finance
1. To access the Asset Finance tab in Mercury Nexus, select Asset Finance from the Opportunities tab
2. The Compliance documents are available in the Opportunity under the tab.
Refer to the Responsible lending section to ensure you are completing and collecting all the relevant compliance documents.