| LEGISLATION | INCOME TYPES | POLICIES | PAYSLIPS | RANDOM |
|---|---|---|---|---|
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National Consumer Credit Protection Act (NCCPA)
What is the main piece of legislation that provides protection for consumers who borrow money?
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As per Consumer Lending Capacity Requirements Policy Table page 2
PAYG wage/salary/contract/casual/overtime/commission; Self-employed; Superannuation; Regular Governments Payments; Salary Sacrifice items; Interest/Dividend/ Rental/Overseas income
Name one type of acceptable income
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Acceptance and / or Settlements Intranet page Policies folder H: Drive
Where do you find the policies relevant to collection and verification of income
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No.
Is it acceptable to use the annual salary figure on the payslip?
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Use the BSB and account number to cross-reference to the customer’s details provided in the application.
How can a bank statement with no name on the statement be deemed acceptable?
|
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Yes, if they use their vehicle for personal and private use more than 50% of the time
Does a self-employed customer have protection under the National Consumer Credit Protection Act?
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Age, disability, carer, parenting (also called family) allowances
Name one common type of acceptable government payment (assuming it is ongoing and appropriate)
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One of: Responsible Lending Policy; Retail Lending
Consumer Lending Capacity Requirements Policy; Settlements Compliance Policy
Name two of the main policies that inform how you collect or verify income
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No.
You must obtain the three most recent (page 3).
If the period end date on a payslip is before September 1st , can you use the Year to Date figure? And if not, how many consecutive payslips do you need?
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All of the following: the F&I Managers (BMs) and the Credit Lending (Acceptance / DLA and Settlements) representatives
Who is responsible to ensure TFA meets its Responsible Lending obligations
|
|
One of:
Make reasonable inquiries about the consumer’s financial situation, Understand the customer’s requirements and objectives; Take reasonable steps to verify the consumer’s financial situation; Make a final assessment about whether the credit contract or consumer lease is ‘not unsuitable’ for the consumer (based on the steps above).
Name one responsible lending obligation we have to meet:
|
More than six months and
with evidence provided by an income tax return or bank statements (not payslips) and a verbal employment confirmation.
Under what circumstances is a circus employee’s seasonal income acceptable?
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No.
Proof of Dividends must be verified via a copy of a tax return which clearly displays what shares are held and the date of payment. (Policy p4)
Are dividend receipts acceptable proof of dividend income? If not what is acceptable evidence.
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One Payslip is acceptable as long as it meets the TFS requirements with all the key attributes, i.e. Legitimate format, YTD, ABN, employer etc. The payslips are to be issued / published no greater than two months prior to the settlement date.
For a PAYG customer, how many payslips are required for verification and how old can the payslip be?
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46/52 (88.46%) to adjust for leave etc.
What scaling is applied to casual income and why?
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Credit licensees must only enter into a credit contract with a consumer if the credit contract is ‘not unsuitable’ for the consumer.
50 bonus points if for explaining ‘unsuitable’. Unsuitable’ means the customer will be unable to meet their payment obligations, either at all or only with substantial hardship.
What is the key concept in Regulatory Guide (RG) 209 regarding credit contracts?
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Requirement – one of: Active ABN for six months; in current industry for six monthsProof of income - one of: Income Tax Return, BAS, Notice of Assessment, Bank Statements
If a person is self-employed what is one requirement and one proof of income method?
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One of: Provided or fabricated/counterfeited documentation (financial institution statements, drivers licence, passport) – e.g. payslip
Applicant falsifying/legally changing their name Applicant has falsified one or more identity details (DOB, drivers licence, address, employment details etc.) Applicant has falsified marital status or number of dependents. All confirmed frauds must be reported internally within 48 hours. Bonus of 50 points if they know (with the exception of suspect fraud listings PMFT 99 may be a lag of up to 14 days)
What are one or more examples of “falsifying personal details” in relation to income in the Credit Risk Fraud Policy and how quickly must you report a suspected fraud.
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The applicant’s income is grossed up to reflect that there is no salary sacrificed items and taxed at the appropriate tax scale and then the value is to be divided by 12 to obtain a net monthly figure.
And the expense if ongoing is included in expenses.
Give one example of a salary sacrifice item and explain how you calculate net monthly income for a payslip with the salary sacrifice item on it and what you do with the expense
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Verbal employment check.
Copy of employment agreement / letter of appointment on company letterhead signed by authorised person.
What is the process for verifying income if the applicant has been in their role for less than two months
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