The Finance Brokers Association of Australia Ltd (FBAA) said today that they will continue their series of credit compliance and NCCP awareness programs throughout 2013 for Business/FNI (finance and Insurance) Managers in dealerships nationally.
Peter White, Chairman, National President and CEO of the FBAA commented “dealing with the obligations and responsibilities of the National Consumer Credit Act (NCCP) and conducting consumer credit within motor vehicle dealerships has changed over the past two and a half years as all consumer finance professionals now must comply to these new rules prescribed by the NCCP.
White continued by saying … “Albeit there are certain exemptions within the Act as it relates to Point of Sale (eg. motor vehicle dealerships), this does not mean that there is a complete exemption from the Act for dealerships and there remains obligations, disclosures and compliance measures together with responsible lending conduct obligations that must be adhered to”
Research and advice given to the FBAA shows that there are around 9,000 motor finance professionals around Australia with many working within motor dealerships plus conducting broking activities as described under the Act.
It is critical that everyone within the motor finance industry and especially motor vehicle dealerships are fully aware of their obligations and have sought their own independent advice outside of what their Wholesale Floor Plan Provider has (or possibly has not) given them.
White has been a part of the NCCP’s industry consulting committee to Treasury from its inception and has close industry ties to ASIC. He cautions dealerships that are not in full e compliance with their obligations under the NCCP by believing that they are exempt from the regulations as being foolish and placing themselves at risk of civil and criminal penalties.
ASIC has cautioned industry that the time for consultation on breaches of the NCCP is over and that all breaches will be taken seriously and acted upon. The mortgage sector has already seen ASIC take decisive action against persons who have breached the Act, and dealerships and motor finance professionals are not off the radar. The last thing any Dealer Principal wants or needs is to have ASIC undertake an investigation of their FNI consumer finance practises and to find themselves in breach of the Act.
White said that in the past he has found a lack of understanding of how the Act is to be applied by those whom one would have thought would be well informed, so complacency is a dangerous thing when it comes to ASIC investigating NCCP breaches.
Acknowledging the strong prior support of the motor finance industry to the FBAA’s first series of seminars on compliance and dealership protective management measures in regard to the NCCP, Mr White commented “The FBAA will be continuing their series of seminars in 2013, in which we will more closely examine what constitutes “Best Practice” by Dealer Principals in their dealership consumer finance practices. We will also be seeking to articulate where the line should be drawn between broking and acting under the Point of Sale exemptions, together with credit fraud management and how to avoid attracting the wrath of ASIC.”
To register your interest in attending this next series of seminars in your state, please email your details to firstname.lastname@example.org with the subject matter being …. NCCP Series II ….. and we will advise you of the dates and location of the same.