Respond to hardship notices within statutory timeframe
Credit providers must consider hardship notices within 21 days under s 72 NCC.
Who must comply
Credit providers regulated under NCCP Act.
What triggers it
Receipt of a hardship notice from a consumer.
When due
Within 21 days of notice.
Evidence required
Notice register, decision records with reasons, communications with consumer, AFCA complaints handling.
Max penalty
Civil penalties to NCCP maximum; AFCA scrutiny + remediation
Summary
Section 72 of the National Credit Code requires credit providers to consider a hardship notice (oral or written) within 21 days. Variations include reduced payments, extended terms, payment freeze, or interest-only. Refusal must be communicated with reasons.
Enforced by
Source legislation
Industries
Topics
Related obligations
- CWLTHComply with NCCP responsible lending obligationsCredit licensees must not enter into credit contracts unsuitable for the consumer.
- CWLTHMortgage broker best interests dutyBrokers must act in the consumer's best interests when providing credit assistance.
- CWLTHBNPL providers — credit licensing from 10 June 2025BNPL captured by the NCCP Act as a regulated credit product from 10 June 2025.
- CWLTHConsumer Credit Hardship Notice (NCC ss 72-73)Credit providers must respond to hardship notice + assess variation request.
- CWLTHSmall Amount Credit Contract + Consumer Lease caps (post-SACC reforms)SACC + consumer lease fee caps + responsible lending tightened post-Royal Commission.
- CWLTHDisplay comparison rate on credit product advertisingAnnual percentage + comparison rate must accompany credit product ads under NCCP Regulations.
Frequently asked questions
- Who must comply with Respond to hardship notices within statutory timeframe?
- Credit providers regulated under NCCP Act.
- What triggers Respond to hardship notices within statutory timeframe?
- Receipt of a hardship notice from a consumer.
- When is Respond to hardship notices within statutory timeframe due?
- Within 21 days of notice.
- What is the maximum penalty for Respond to hardship notices within statutory timeframe?
- Civil penalties to NCCP maximum; AFCA scrutiny + remediation
- What evidence is required for Respond to hardship notices within statutory timeframe?
- Notice register, decision records with reasons, communications with consumer, AFCA complaints handling.
Source: https://asic.gov.au/regulatory-resources/credit/hardship-and-default-notices. Rules Mate is not a law firm. Always verify against the live regulator source before acting.