Compliance update - Displaying your Australian Credit Licence number
There has been much talk recently with the requirements under the NCCP Act for ACL holders to display their licence details on prescribed documents. Section 52 of the NCCP Act specifies that an ACL holder must show its ACL number on the prescribed documents after 1 April 2012.
Breaches could cost you $
This is an important requirement as a breach could incur a civil penalty of $220,000 for individuals or $1.1m for companies.
When do I have to show my Australian Credit Licence Number?
The prescribed documents that the regulations refer to are:
- Credit Guides, Quotes and Credit Proposal Disclosure documents;
- Any printed advertisements;
- Any documents required to be created, produced, given or published under the Code (eg NCC notices, credit contracts, mortgages, guarantees); and
- Documents lodged with ASIC that relate to the provision of regulated credit.
It is important to note that the term ‘Australian Credit Licence Number’ must be stated in full. The abbreviation ‘ACL’ is not acceptable.
What if I’m a Credit Rep?
There is no specific requirement for Credit Representatives to show its credit representative number except in credit guides. It is important to note that the term `Credit Representative Number’ must be stated in full. The abbreviation ‘CR’ is not acceptable. However, it would be wise for credit representatives to show their CR number on all documents listed above in conjunction with the licensee’s ACL number.
Below is a table that will assist you in determining what documents need to display your ACN or ABN along with your licence details.
Document - Australian Credit Licence Number (do not use 'ACL') - ACN or ABN if a Company
Letters - No, not an advertisement - Yes
Credit Guide, Quote, Credit Proposal Disclosure documents - Yes - Yes
Business Cards - No, not an advertisement - No
Web site - Yes - Yes
Emails - No - Yes
Printed advertising - Yes - Yes
Brochures - Yes - Yes
NCC Notices - Yes - Yes
Credit contracts - Yes - Yes
Mortgages - Yes - Yes
Guarantees - Yes - Yes
All other company documents - Permitted, but not required - See above summary
Plus, it is important to note that if you include an advertisement within a letter or email you are required to display the licence details as effectively it is advertising.
Should you have any questions please feel free to email the compliance team on firstname.lastname@example.org