Qualification Pack $110
ASIC’s Regulatory Guide 209 covers Responsible Lending Conduct. Clause 209.16 says:
In order to determine whether a credit contract is unsuitable, the legislation states that you must make reasonable enquiries about the consumer. The legislation requires both credit assistance providers and credit providers to:
(a) make reasonable enquiries about the consumer’s requirements and objectives in relation to the credit contract;
(b) make reasonable enquiries about the consumer’s financial situation (i.e. to determine whether the consumer has the capacity to repay the loan); and
(c) take reasonable steps to verify the consumer’s financial situation.
The Vendor Finance Institute’s ‘NCC Application Pack’ has been made available to assist Vendor Financiers comply with (a) and (b), i.e. to make reasonable enquiries about a consumer’s requirements & objectives and the consumer’s financial situation.
This ‘Qualification Pack’ has been made available to assist Vendor Financiers ensure they take reasonable steps to meet the requirements of point (c), i.e. verify the consumer’s financial position.
From checking your potential buyer’s requirements & objectives questionnaire, through checking their serviceability and gathering the necessary supporting paperwork, the NCC Qualification Pack is designed to ensure you verify your potential buyer’s financial situation. This is done via an easy to follow checklist format. Ensure your buyer qualification process follows ASIC’s requirements for Responsible Lending Conduct.