ASIC released Regulatory Guide 201 Unsolicited credit cards and debit cards (RG 201) on 6 August 2009.
RG 201 clarifies ASIC’s interpretation of the scope of s12DL of the Australian Securities and Investments Commission Act 2001, which prohibits a person from sending unsolicited credit cards and debits cards to consumers.
The aim of this guidance is to provide card providers with a clear statement of ASIC’s view of the types of card distributions that are allowed under s12DL. Unsolicited distributions of credit and debit cards can be confusing for consumers and can result in consumers using a card with features that they have not asked for or agreed to.
The guide sets out ASIC’s view that the exceptions to this prohibition only allow the sending out of a credit card or debit card that is effectively the same as, or equivalent to, the existing card and would not place the consumer in a different position with respect to use of the card. An example is where a card provider sends new cards with the same features to cardholders whose existing cards are close to expiry, or where the new card has new security features.