---
title: "Responsible lending unsuitability assessment record (credit providers)"
url: "https://ailawframework.com/precedents/financial-services-regulation/credit-unsuitability-assessment"
type: "precedent"
site: "AI Law Framework"
id: "a28-credit-unsuitability-assessment"
area_id: "A28"
kind: "checklist"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# Responsible lending unsuitability assessment record (credit providers)

> File record and checklist for a credit provider's assessment that a credit contract or limit increase is not unsuitable: inquiries, verification, the assessment, automated decision tools, the outcome and the consumer's…

Canonical page: https://ailawframework.com/precedents/financial-services-regulation/credit-unsuitability-assessment  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

File record and checklist for a credit provider's assessment that a credit contract or limit increase is not unsuitable: inquiries, verification, the assessment, automated decision tools, the outcome and the consumer's right to a copy.

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Financial Services Regulation](https://ailawframework.com/precedents/financial-services-regulation.md)
- Jurisdictions: Australia
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 5 authorities it cites, for Australia.

## When to use it

Use for each consumer credit contract or credit limit increase regulated by the NCCP Act, and to audit loan files. Credit assistance providers (brokers) make a preliminary assessment under Part 3-1 instead; adapt the section references. Not for small business or other credit outside the National Credit Code.

## How AI may be used

Automated scoring, transaction categorisation and AI tools may support the inquiries and verification, but the licensee must actually make the assessment the Act requires, be able to explain it, and keep the material it relied on.

**AI may:**

- Categorise bank transaction data into income, expense and liability types for the assessor to check.
- Flag inconsistencies between declared information, bank data and credit report data.
- Pre-fill this record from the loan file, marking every field that has no supporting document.

**AI must not:**

- Must not make the final unsuitability assessment or decline a consumer without human review where the licensee's policy requires it.
- Must not substitute a benchmark or model estimate for inquiries the circumstances call for.
- Must not process consumer financial data in a tool not approved for that data under the licensee's privacy and security controls.

**The lawyer checks:**

- The record shows each limb of s 131(2) was considered: ability to comply without substantial hardship, requirements and objectives, and any prescribed circumstances.
- Verification steps match the risk of the product and the consumer's circumstances (scalability, RG 209).
- The model version, inputs, overrides and human review are recorded so the decision can be explained.

## Authorities

- [National Consumer Credit Protection Act 2009 (Cth) s 128 (obligation to assess unsuitability within 90 days before the credit day)](https://www.legislation.gov.au/C2009A00134/latest/text)
- [National Consumer Credit Protection Act 2009 (Cth) ss 129, 130, 131 (the assessment; reasonable inquiries and verification; when a contract must be assessed as unsuitable)](https://www.legislation.gov.au/C2009A00134/latest/text)
- [National Consumer Credit Protection Act 2009 (Cth) ss 132, 133 (giving the consumer the assessment; prohibition on unsuitable contracts)](https://www.legislation.gov.au/C2009A00134/latest/text)
- [ASIC Regulatory Guide 209 Credit licensing: Responsible lending conduct (issued 9 December 2019, updated March 2025)](https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-209-credit-licensing-responsible-lending-conduct)
- [Australian Securities and Investments Commission v Westpac Banking Corporation 2020 FCAFC 111](https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/full/2020/2020fcafc0111)

## Official form

[Official form](https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-209-credit-licensing-responsible-lending-conduct)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/financial-services-regulation/credit-unsuitability-assessment and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*