Factsheet: Consumer credit and responsible lending

What is responsible lending?

Lenders must comply with the responsible lending obligations set out in the National Credit Act. The National Credit Act imposes certain obligations on lenders to engage in "responsible lending" when providing consumer credit contracts and loans or increasing the credit limits of loans.

The responsible lending obligations are designed to ensure that lenders do not suggest or encourage consumers to enter into credit arrangements that would be unsuitable for them given their financial situation, requirements or objectives. Responsible lending obligations require that lenders make an assessment of a consumer's "unsuitability" for entry into a credit arrangement before providing credit or a loan to them.

Access the full PDF below for a complete guide on responsible lending.

This resource is under review following recent changes in the law. It may not be current and accurate.