Unsuitability assessment

Licensees are required to conduct an unsuitability assessment to discharge their responsible lending obligations. Part of undertaking this assessment requires licensees to conduct a preliminary (for credit assistance providers) or final (for credit providers) assessment of unsuitability and make a determination as to whether the contract would be not unsuitable.

This guidance note explains the factors to be considered in undertaking an unsuitability assessment, when the unsuitability assessment should be conducted, what information should be used in the assessment, and explains the concept of “substantial hardship”.

See Unsuitability assessment.