These regulations, which come into force on 30 September 2021, defer, for 2 months, the commencement of the provisions of the Credit Contracts and Consumer Finance (Lender Inquiries into Suitability and Affordability) Amendment Regulations 2020. This follows the making of the Credit Contracts Legislation Amendment Act Commencement Amendment Order 2021, which defers, for 2 months, the commencement of most of the provisions of the Credit Contracts Legislation Amendment Act 2019 that were due to come into force on 1 October 2021.

The deferred provisions apply for the purpose of section 9C of the Credit Contracts and Consumer Finance Act 2003, which requires lenders to make reasonable inquiries before entering into agreements, so as to be satisfied that it is likely that the credit or finance provided under the agreement will meet the borrower’s requirements and objectives and that the borrower will make the payments under the agreement without suffering substantial hardship. These requirements will also apply before lenders make a material change to agreements.

The deferred provisions prescribe—

• inquiries that must be made:

• processes, practices, and procedures that a lender should follow when making reasonable inquiries:

• the way in which the results of the inquiries must be taken into account:

• circumstances that would prevent a lender from being satisfied as to a matter.