The Consumer Protection Code now reads as follows as amended by the 2016 update (amendment in red)
6.6 A regulated entity must notify affected personal consumers on paper or on another durable medium of any change in the interest rate on a loan. This notification must include:
a) the date from which the new rate applies;
b) details of the old and new rate;
c) the revised repayment amount; and
d) an invitation for the personal consumer to contact the lender if he or she anticipates difficulties meeting the higher repayments.
“e) in the case of an increase in the interest rate on a mortgage with a variable interest rate, excluding a tracker interest rate:
i) the reason, by reference to the summary statement produced in accordance with Provision 4.28a, for the change in the interest rate;
ii) a summary of other mortgage products provided by the regulated entity that could provide savings for the personal consumer at that point in time;
iii) details of where the personal consumer can obtain further information on these mortgage products;
iv) a statement that the personal consumer should keep their mortgage arrangements under review as there may be other options that could provide savings for the personal consumer; and
v) a link to the relevant section on the Competition and Consumer Protection Commission’s website relating to switching lenders or changing mortgage type.”
In the case of a mortgage where a revised repayment arrangement has been put in place in accordance with the Code of Conduct for Mortgage Arrears, the notification must clearly indicate the revised repayment amount required in Part c) that applies to the revised repayment arrangement.
6.7 A regulated entity must provide the notification required under Provision 6.6 to a personal consumer at least 30 days in advance of any change in the interest rate, except in the following circumstances:
a) in the case of a tracker interest rate, the regulated entity must provide the notification required under Provision 6.6 as soon as possible, and no later than 10 business days after the regulated entity becomes aware of a change in the underlying rate being tracked; or
b) for loans other than mortgage loans, where the following conditions are satisfied, the regulated entity does not need to provide the notification required under Provision 6.6:
i) the change in the interest rate is caused by a change in a reference rate which changes on a daily or weekly basis;
ii) the new reference rate is made publicly available by appropriate means; and
iii) information concerning the new reference rate is kept available on the premises of the regulated entity.
