A four-course (twelve module) training suite for loans and general staff, covering consumer credit regulation in Australia
Consumer lending is strictly regulated in Australia, and businesses that offer loans to consumers, including credit cards, need to ensure that
- Their loans documents, advertising etc comply with the regulations – even down to details such as the size of print on regulated documents
- Their processes, including processes for the forming, management and enforcing of consumer loans, strictly comply with the regulations
- Their staff – all customer-facing staff, loans staff, enforcement staff and their managers – are properly trained with their training kept current
There are strict requirements around the annual training that lending staff must undergo.
This training suite is designed to assist lending institutions ensure their staff are properly trained to ensure the business remains compliant with the law.
The contents of the Training Suite
Course One: Consumer Lending Regulation Training
Module 1: Key Concepts, Products and Features
- decide whether a loan is regulated as consumer credit
- list the common types of loan products available
- outline the general features of loans
- how loans can be secured by a mortgage
- list common related insurance products
Module 2: Consumer Lending Regulation Overview
- describe the sources of consumer lending regulation in Australia
- describe ASIC’s role as the credit consumer protection regulator
- describe the consequences of non-compliance
- describe consumer lending licensing and the general obligations of licensees
Module 3: Forming a Consumer Loan
- describe marketing of credit and sale activities
- explain Responsible Lending Obligations
- discuss credit contracts (both form and content)
- describe pre-contractual disclosures
- explain the importance of checking borrower understanding and free choice
Module 4: Consumer Mortgages
- how a mortgage works
- what can a mortgage secure?
- the steps involved in taking a mortgage
Module 5: Credit Related Insurance
- mortgaged property insurance (MPI)
- lenders mortgage insurance (LMI)
- consumer credit insurance (CCI)
Module 6: Loan Guarantees
- the legal disclosures to the proposed guarantor
- ensuring guarantor understanding and free choice
- execution of the guarantee
Module 7: Responsible Lending
- identify the Responsible Lending Obligation (RLO) to make reasonable inquiries about the borrower’s requirements and objectives
- discuss the RLO to make reasonable inquiries about the borrower’s financial situation
- recognise the RLO to take reasonable steps to verify the borrower’s financial situation
- explain the RLO to make a suitability assessment
- identify your record-keeping obligation
Course 2 – Managing Consumer Loans in Trouble
Module 1: Loans in trouble
- explain the ways in which problem loans can be dealt with in the early stages
- outline the financial hardship assistance process
- describe the common steps taken to recover an unpaid loan
Module 2: Debt Collection Practices
- describe the legal framework for debt collection
- outline the rules for making contact with the borrower
- describe the appropriate ways of communicating with the borrower
Module 3: Handling Financial Hardship Applications
- explain the procedures for opening a financial hardship assistance application
- describe how to evaluate a financial hardship application
- generating effective assistance options in a financial hardship case
Course 3 – Consumer Lending – The Economic and Market Context
- describe the roles of ASIC and APRA in relation to home lending explain the effects of inflation on home loans
- identify how different stages of the business cycle can impact home loans
- list the effects of changes in home loan interest rates
Course 4 – Credit Cards Training
- What information in the Credit Code Key Facts Sheet will help a customer choose the right credit card?
- How the special ‘Responsible Lending’ rules apply to credit cards
- Measures that help a customer better manage their credit card
Who should do this training?
The course is suitable for customer-facing staff, loans staff, enforcement and collections staff, and their managers in institutions that offer consumer loans in Australia.
Note that some of the advanced modules may not be relevant to all staff. Managers and L&D staff need to consult on which modules need to be assigned to staff in different sections of their business. This will vary from business to business, as most financial institutions arrange staff responsibilities in different ways.
GRC Solutions staff are available to offer advice and suggestions to help with this process.
GRC Solutions offers Credit News – a magazine-style product, with a quiz, published ten times a year and intended to assist lending businesses comply with ASIC’s training requirements for loans staff in Regulatory Guide 206.98.
For more information on Credit News, click here.
Course one: Consumer Lending Regulation Training
- Module 1: Key concepts, Products and Features
- Module 2: Consumer Lending Regulation Overview
- Module 3: Forming a Consumer Loan
- Module 4: Consumer Mortgages
- Module 5: Credit Related Insurance
- Module 6: Loan Guarantees
- Module 7: Responsible Lending
Course two: Managing Consumer Loans in Trouble
- Module 1: Loans in Trouble
- Module 2: Debt collection
- Module 3: Handling Financial Hardship
Course three: The Economic and Market context of Consumer Lending
Course four: Credit Cards
Do you have a policy or process, or some subject-matter expertise that you would like to add to this course?
Talk to us about ways we can quickly tailor the course to suit your needs.