I understand that carrying out a preliminary assessment is a key part of my Responsible Lending obligations. What is the difference between this and a final assessment?
The legislative requirements for a preliminary assessment and a final assessment are the same. The only distinction between them is that a credit assistant need only make reasonable enquiries available to it. As a credit assistant you must: – Make reasonable enquiries about the borrowers requirements and objectives; – Make reasonable enquiries about the borrowers financial situation; and – Take reasonable steps to verify that financial situation. You are not required to undertake credit checks or make enquiries of other credit providers in the course of performing a preliminary assessment.
