Due diligence checklist, Australia
NCCP Act (ASIC): what to ask a vendor
National Consumer Credit Protection Act 2009. ASIC. Credit licensees meet responsible lending, disclosure and hardship obligations.
What it is
Credit licensees meet responsible lending, disclosure and hardship obligations.
Who it applies to
Applies to every financial institution in Australia, when procuring lending and origination, collections and recoveries.
What to ask a vendor, and the evidence to request
| # | Ask the vendor for | Evidence to request |
|---|---|---|
| 1 | Responsible lending inquiries and verification, recorded per application | The identification and verification methods supported, the rules they follow, and the record kept for each check. |
| 2 | Credit guide, pre-contractual and hardship notices in the required form | Samples of the notices and documents the system produces, and the workflow for hardship, arrears and vulnerable customer cases. |
| 3 | Hardship and dispute handling that meets the Act and ASIC's guidance | Samples of the notices and documents the system produces, and the workflow for hardship, arrears and vulnerable customer cases. |
In every case
- A named contact at the vendor responsible for this regime, and how the vendor tracks changes to it.
- Which named customers the vendor already serves under this regime, as references you may call.
This checklist is a starting point for a procurement team, not legal advice. Read it with the regulator's own page, your institution's policies and your legal and risk teams; the regime may have changed since the date on this document.
Next
- Every checklist, by country
- What a market scan is and how to run one
- Have Vederca run the procurement: the regime goes into the register as a must-have