This Factsheet addresses consumer credit and responsible lending laws in NSW, Australia.
What is responsible lending?
Responsible lending means lenders must only give you a loan if it is suitable for you and you can afford to repay it.
This requirement comes from the National Consumer Credit Protection Act 2009 (Cth).
These rules apply when a lender:
• gives you a loan or credit, or
• increases your credit limit
They are designed to stop lenders from putting you into loans that don’t suit your needs or financial situation.