Commonwealth Consolidated Acts Commonwealth Consolidated ActsAct No. 134 of 2009 as amended
This compilation was prepared on 5 January 2012
taking into account amendments up to Act No. 84 of 2011
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may
be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and
Publishing,
Attorney-General's Department, Canberra
Contents
Chapter 1--Introduction 1
Part 1-1--Introduction 1
1............ Short title [see Note 1] ........................................................................ 1
2............ Commencement ................................................................................... 1
3............ The National Credit Code .................................................................... 2
Part 1-2--Definitions 3
Division 1--Introduction 3
4............ Guide to this Part ................................................................................ 3
Division 2--The Dictionary 4
5............ The Dictionary .................................................................................... 4
Division 3--Definitions relating to the meaning of credit activity 15
6............ Meaning of credit activity .................................................................. 15
7............ Meaning of credit service .................................................................. 16
8............ Meaning of credit assistance ............................................................ 16
9............ Meaning of acts as an intermediary ................................................. 17
10.......... Assignees of credit providers, lessors, mortgagees and beneficiaries of a guarantee 17
Division 4--Other definitions 19
11.......... Meaning of approved external dispute resolution scheme ................ 19
12.......... When a business is carried on in this jurisdiction ............................ 19
13.......... Meaning of misleading ..................................................................... 19
14.......... Meaning of person--generally includes a partnership ...................... 20
15.......... Meaning of person--generally includes multiple trustees ................. 20
16.......... Qualified privilege ............................................................................. 22
Part 1-3--Application of this Act and the Transitional Act 23
Division 1--Introduction 23
17.......... Guide to this Part .............................................................................. 23
Division 2--Constitutional basis and application of this Act and the Transitional Act 24
18.......... Constitutional basis for this Act and the Transitional Act ................. 24
19.......... Meaning of referring State ................................................................ 25
20.......... Meaning of referred credit matter .................................................... 29
21.......... General application of this Act and the Transitional Act ................... 29
22.......... When Acts bind Crown .................................................................... 30
Division 3--Interaction between the Commonwealth credit legislation and State and Territory laws 31
23.......... Concurrent operation intended .......................................................... 31
24.......... When Commonwealth credit legislation does not apply .................... 31
25.......... Avoiding direct inconsistency between Commonwealth and State and Territory laws 32
26.......... Regulations to deal with interaction between laws ............................ 33
Chapter 2--Licensing of persons who engage in credit activities 35
Part 2-1--Requirement to be licensed to engage in credit activities 35
Division 1--Introduction 35
27.......... Guide to this Part .............................................................................. 35
Division 2--Engaging in credit activities without a licence 36
28.......... Application of this Division .............................................................. 36
29.......... Prohibition on engaging in credit activities without a licence ............ 36
Division 3--Other prohibitions relating to the requirement to be licensed and to credit activities 38
30.......... Prohibitions on holding out and advertising etc. ............................... 38
31.......... Prohibition on conducting business with unlicensed persons ........... 39
32.......... Prohibition on charging a fee etc. ...................................................... 39
33.......... Prohibition on giving misleading information etc. ............................. 40
Part 2-2--Australian credit licences 41
Division 1--Introduction 41
34.......... Guide to this Part .............................................................................. 41
Division 2--Australian credit licences 42
35.......... Australian credit licences ................................................................... 42
Division 3--How to get an Australian credit licence 43
36.......... Applying for a licence ....................................................................... 43
37.......... When a licence may be granted--applicants other than ADIs ........... 43
38.......... When a licence may be granted--ADIs ............................................ 45
39.......... Regulations may prescribe streamlined process for other applicants . 46
40.......... Licences must not be granted to certain applicants ............................ 46
41.......... Applicant must be given hearing before refusal of licence ................ 46
42.......... Notice of grant or refusal of licence and date of effect ...................... 47
43.......... Australian credit licence numbers ...................................................... 47
44.......... Basis on which licence is granted ...................................................... 47
Division 4--Conditions on an Australian credit licence 49
45.......... The conditions on the licence ............................................................ 49
46.......... Licence conditions--special procedures for APRA-regulated bodies 50
Division 5--Obligations of licensees 52
47.......... General conduct obligations of licensees ........................................... 52
48.......... Requirements for compensation arrangements .................................. 53
49.......... Obligation to provide a statement or obtain an audit report if directed by ASIC 54
50.......... Obligation to give ASIC information required by the regulations ..... 56
51.......... Obligation to provide ASIC with assistance if reasonably requested 57
52.......... Obligation to cite Australian credit licence number ........................... 57
53.......... Obligation to lodge annual compliance certificate .............................. 58
Division 6--When a licence can be suspended, cancelled or varied 60
Subdivision A--Suspensions and cancellations 60
54.......... Suspension or cancellation without hearing ...................................... 60
55.......... Suspension or cancellation after offering a hearing ........................... 61
56.......... Suspension and cancellation--special procedures for APRA-regulated bodies 62
Subdivision B--Variations 63
57.......... Varying licences ................................................................................ 63
Subdivision C--Miscellaneous rules about suspensions, cancellations and variations 63
58.......... Effect of suspension .......................................................................... 63
59.......... Revocation of suspension ................................................................. 63
60.......... Date of effect, notice and publication of variation, cancellation or suspension etc. 63
61.......... Statement of reasons ......................................................................... 64
62.......... ASIC may allow licence to continue in force .................................... 64
Part 2-3--Credit representatives and other representatives of licensees 65
Division 1--Introduction 65
63.......... Guide to this Part .............................................................................. 65
Division 2--Authorisation of credit representatives 66
64.......... Licensee may authorise credit representatives ................................... 66
65.......... Credit representative that is a body corporate may sub-authorise natural persons as credit representatives 67
66.......... Credit representative of 2 or more licensees ...................................... 68
67.......... A person cannot be a credit representative in relation to credit activities authorised by a person's licence 69
68.......... Variation and revocation of authorisations and sub-authorisations ... 69
69.......... Obligation not to give authorisation that has no effect ....................... 70
70.......... Obligation to vary or revoke authorisation that ceases to have effect 70
71.......... Obligation to notify ASIC etc. about credit representatives ............... 71
72.......... Credit representative numbers ........................................................... 73
Division 3--Information about representatives 74
73.......... ASIC may give licensee information about representatives ............... 74
Division 4--Liability of licensees for representatives 77
74.......... Application of this Division .............................................................. 77
75.......... Responsibility if representative of only one licensee ......................... 77
76.......... Representatives of multiple licensees ................................................ 77
77.......... Responsibility extends to loss or damage suffered by client ............. 78
78.......... Effect of this Division ....................................................................... 78
Part 2-4--Banning or disqualification of persons from engaging in credit activities 80
Division 1--Introduction 80
79.......... Guide to this Part .............................................................................. 80
Division 2--Banning orders 81
80.......... ASIC's power to make a banning order ............................................ 81
81.......... What is a banning order? .................................................................. 82
82.......... Effect of banning orders .................................................................... 83
83.......... Variation or cancellation of banning orders ....................................... 83
84.......... Date of effect, notice and publication of banning order, variation or cancellation 84
85.......... Statement of reasons ......................................................................... 85
Division 3--Disqualification by the court 86
86.......... Disqualification by the court ............................................................. 86
Part 2-5--Financial records, trust accounts and audit reports 87
Division 1--Introduction 87
87.......... Guide to this Part .............................................................................. 87
Division 2--Financial records of licensees 88
88.......... Obligation to keep financial records .................................................. 88
89.......... How financial records are to be kept ................................................. 89
90.......... Language of financial records ........................................................... 89
91.......... Location of financial records ............................................................. 89
92.......... Information to be shown in financial records .................................... 90
93.......... Regulations may impose additional requirements .............................. 90
94.......... Financial records taken to be made with licensee's authority ............ 91
95.......... Obligation to retain financial records for 7 years ............................... 91
96.......... Financial records are prima facie evidence of matters ........................ 91
Division 3--Trust accounts of credit service licensees 93
97.......... Application of this Division .............................................................. 93
98.......... Obligation for credit service licensees to maintain trust account ........ 93
99.......... Obligations in relation to trust account money .................................. 94
100........ Obligation to lodge trust account statement and trust account audit report 95
101........ Time of lodgment of trust account statement and trust account audit report 96
Division 4--Matters relating to audit reports 98
102........ Auditor's right of access to records, information etc. ........................ 98
103........ Auditor's fees and expenses ............................................................. 99
104........ Auditor to report on certain matters ................................................... 99
105........ Qualified privilege for auditor etc. ................................................... 100
106........ Regulations in relation to audit reports etc. ...................................... 101
Part 2-6--Exemptions and modifications relating to this Chapter 102
Division 1--Introduction 102
107........ Guide to this Part ............................................................................ 102
Division 2--Exemptions and modifications relating to this Chapter 103
108........ Provisions to which this Part applies .............................................. 103
109........ Exemptions and modifications by ASIC ......................................... 103
110........ Exemptions and modifications by the regulations ........................... 105
Chapter 3--Responsible lending conduct 106
Part 3-1--Licensees that provide credit assistance in relation to credit contracts 106
Division 1--Introduction 106
111........ Guide to this Part ............................................................................ 106
112........ Application of this Part ................................................................... 107
Division 2--Credit guide of credit assistance providers 108
113........ Credit guide of credit assistance providers ...................................... 108
Division 3--Quote for providing credit assistance etc. in relation to credit contracts 111
114........ Quote for providing credit assistance etc. ........................................ 111
Division 4--Obligations of credit assistance providers before providing credit assistance for credit contracts 113
115........ Obligations of credit assistance providers before providing credit assistance for credit contracts 113
116........ Preliminary assessment of unsuitability of the credit contract ......... 114
117........ Reasonable inquiries etc. about the consumer ................................. 114
118........ When the credit contract must be assessed as unsuitable--entering contract or increasing the credit limit 115
119........ When the credit contract must be assessed as unsuitable--remaining in credit contract 116
120........ Providing the consumer with the preliminary assessment ............... 117
Division 5--Fees, commissions etc. relating to credit contracts 119
121........ Fees, commissions etc. relating to credit contracts .......................... 119
122........ No profiting from fees etc. paid to third parties ............................... 120
Division 6--Prohibition on suggesting, or assisting with, unsuitable credit contracts 121
123........ Prohibition on suggesting or assisting consumers to enter, or increase the credit limit under, unsuitable credit contracts ........................................................................................................ 121
124........ Prohibition on suggesting to consumers to remain in unsuitable credit contracts 122
Part 3-2--Licensees that are credit providers under credit contracts: general rules 125
Division 1--Introduction 125
125........ Guide to this Part ............................................................................ 125
Division 2--Credit guide of credit providers 126
126........ Credit guide of credit providers ....................................................... 126
127........ Credit guide of credit providers who are assignees ......................... 127
Division 3--Obligations of credit providers before entering credit contracts or increasing credit limits 129
128........ Obligations of credit providers before entering credit contracts or increasing credit limits 129
129........ Assessment of unsuitability of the credit contract ........................... 129
130........ Reasonable inquiries etc. about the consumer ................................. 129
131........ When credit contract must be assessed as unsuitable ...................... 130
132........ Giving the consumer the assessment ............................................... 131
Division 4--Prohibition on entering, or increasing the credit limit of, unsuitable credit contracts 133
133........ Prohibition on entering, or increasing the credit limit of, unsuitable credit contracts 133
Part 3-2A--Licensees that are credit providers under credit contracts: additional rules relating to standard home loans 135
Division 1--Introduction 135
133A..... Guide to this Part ............................................................................ 135
Division 2--Key Facts Sheets for standard home loans 136
133AA.. What is a standard home loan? ....................................................... 136
133AB.. What is a Key Facts Sheet for a standard home loan? ...................... 136
133AC.. Credit provider's website to provide capacity to generate Key Facts Sheet 137
133AD.. Credit provider to provide Key Facts Sheet in other situations ........ 138
133AE... What if more information is needed from the consumer? ................ 139
133AF... Defences to obligation to provide a Key Facts Sheet ....................... 140
Part 3-3--Licensees that provide credit assistance in relation to consumer leases 141
Division 1--Introduction 141
134........ Guide to this Part ............................................................................ 141
135........ Application of this Part ................................................................... 142
Division 2--Credit guide of credit assistance providers 143
136........ Credit guide of credit assistance providers ...................................... 143
Division 3--Quote for providing credit assistance etc. in relation to consumer leases 146
137........ Quote for providing credit assistance etc. ........................................ 146
Division 4--Obligations of credit assistance providers before providing credit assistance for consumer leases 148
138........ Obligations of credit assistance providers before providing credit assistance for consumer leases 148
139........ Preliminary assessment of unsuitability of the consumer lease ....... 149
140........ Reasonable inquiries etc. about the consumer ................................. 149
141........ When the consumer lease must be assessed as unsuitable--entering lease 150
142........ When the consumer lease must be assessed as unsuitable--remaining in lease 151
143........ Providing the consumer with the preliminary assessment ............... 152
Division 5--Fees, commissions etc. relating to consumer leases 154
144........ Fees, commissions etc. relating to consumer leases ........................ 154
145........ No profiting from fees etc. paid to third parties ............................... 155
Division 6--Prohibition on suggesting, or assisting with, unsuitable consumer leases 156
146........ Prohibition on suggesting, or assisting with, unsuitable consumer leases 156
147........ Prohibition on suggesting to consumers to remain in unsuitable consumer leases 157
Part 3-4--Licensees that are lessors under consumer leases 160
Division 1--Introduction 160
148........ Guide to this Part ............................................................................ 160
Division 2--Credit guide of lessors 161
149........ Credit guide of lessors .................................................................... 161
150........ Credit guide of lessors who are assignees ....................................... 162
Division 3--Obligations of lessors before entering consumer leases 164
151........ Obligations of lessors before entering consumer leases .................. 164
152........ Assessment of unsuitability of the consumer lease ......................... 164
153........ Reasonable inquiries etc. about the consumer ................................. 164
154........ When consumer lease must be assessed as unsuitable .................... 165
155........ Giving the consumer the assessment ............................................... 166
Division 4--Prohibition on entering unsuitable consumer leases 168
156........ Prohibition on entering unsuitable consumer leases ........................ 168
Part 3-5--Credit representatives 170
Division 1--Introduction 170
157........ Guide to this Part ............................................................................ 170
Division 2--Credit guide of credit representatives 171
158........ Credit guide of credit representatives .............................................. 171
Part 3-6--Debt collectors 174
Division 1--Introduction 174
159........ Guide to this Part ............................................................................ 174
Division 2--Credit guide of debt collectors 175
160........ Credit guide of debt collectors ......................................................... 175
Part 3-7--Exemptions and modifications relating to this Chapter 177
Division 1--Introduction 177
161........ Guide to this Part ............................................................................ 177
Division 2--Exemptions and modifications relating to this Chapter 178
162........ Provisions to which this Part applies .............................................. 178
163........ Exemptions and modifications by ASIC ......................................... 178
164........ Exemptions and modifications by the regulations ........................... 179
Chapter 4--Remedies 180
Part 4-1--Civil penalty provisions 180
Division 1--Introduction 180
165........ Guide to this Part ............................................................................ 180
Division 2--Declarations and pecuniary penalty orders for contraventions of civil penalty provisions 181
166........ Declaration of contravention of civil penalty provision ................... 181
167........ Court may order person to pay pecuniary penalty for contravening civil penalty provision 181
Division 3--General provisions relating to civil penalty provisions 183
168........ Contravening a civil penalty provision is not an offence ................. 183
169........ Involvement in contravention treated in same way as actual contravention 183
170........ Civil evidence and procedure rules for proceedings relating to civil penalty provisions 183
171........ Criminal proceedings before civil proceedings ................................ 183
172........ Criminal proceedings during civil proceedings ............................... 183
173........ Criminal proceedings after civil proceedings ................................... 184
174........ Evidence given in proceedings for pecuniary penalty not admissible in criminal proceedings 184
175........ Civil double jeopardy ...................................................................... 184
Part 4-2--Power of the court to grant remedies 185
Division 1--Introduction 185
176........ Guide to this Part ............................................................................ 185
Division 2--Power of the court to grant remedies 186
177........ Injunctions ...................................................................................... 186
178........ Compensation orders ...................................................................... 187
179........ Other orders to compensate loss or damage .................................... 188
180........ Orders in relation to unlawful credit activities ................................. 190
181........ Preference must be given to compensate consumers ....................... 191
182........ Adverse publicity orders ................................................................. 192
183........ Relief from liability for contravention of civil penalty provision ..... 192
184........ Multiple remedies may be granted ................................................... 193
Part 4-3--Jurisdiction and procedure of courts 194
Division 1--Introduction 194
185........ Guide to this Part ............................................................................ 194
Division 2--Civil proceedings 195
Subdivision A--Application of this Division 195
186........ Application of this Division ............................................................ 195
Subdivision B--Conferral of civil jurisdiction 195
187........ Civil jurisdiction of courts ............................................................... 195
188........ Jurisdiction--decisions to prosecute and related criminal justice process decisions made by Commonwealth officers ........................................................................................................ 196
189........ Cross-jurisdictional appeals ............................................................ 198
190........ Courts to act in aid of each other ..................................................... 198
Subdivision C--Transfers between courts 199
191........ Transfers--application of Subdivision ............................................ 199
192........ Transfers--exercise of transfer power ............................................ 199
193........ Transfers--criteria for transfer ........................................................ 200
194........ Transfers--how initiated ................................................................. 201
195........ Transfers--documents and procedure ............................................. 201
196........ Transfers--conduct of proceedings ................................................ 201
197........ Transfers--entitlement to practise as a lawyer ................................ 202
198........ Transfers--limitation on appeals ..................................................... 202
Subdivision D--Other matters 202
199........ Plaintiffs may choose small claims procedure ................................. 202
200........ Costs only if proceedings brought vexatiously etc. ......................... 206
201........ Civil proceedings not to be stayed ................................................... 207
202........ Standard of proof in civil proceedings ............................................ 207
Division 3--Criminal proceedings 208
Subdivision A--Application of this Division 208
203........ Application of this Division ............................................................ 208
Subdivision B--Conferral of criminal jurisdiction 208
204........ Criminal jurisdiction of courts ......................................................... 208
205........ Criminal proceedings--laws to be applied ...................................... 211
206........ Criminal proceedings--how taken .................................................. 211
207........ Certain persons to assist in prosecutions ......................................... 212
208........ Privilege against self-incrimination not available to bodies corporate in criminal proceedings 213
Division 4--Proceedings generally 214
209........ ASIC's power to intervene in proceedings ..................................... 214
210........ Evidence of contravention ............................................................... 214
211........ Power of court to punish for contempt of court .............................. 215
Chapter 5--Administration 216
Part 5-1--Registers relating to credit activities 216
Division 1--Introduction 216
212........ Guide to this Part ............................................................................ 216
Division 2--Registers relating to credit activities 217
213........ Credit registers ................................................................................ 217
214........ Inspection and public availability of credit registers ........................ 218
Part 5-2--Documents lodged with ASIC or required by this Act 219
Division 1--Introduction 219
215........ Guide to this Part ............................................................................ 219
Division 2--Lodgment of documents with ASIC 220
216........ When documents are lodged with ASIC ......................................... 220
217........ Approved forms for documents to be lodged with ASIC ............... 220
218........ ASIC may refuse to receive document etc. ...................................... 221
Division 3--ASIC's register of documents 223
219........ Register of documents lodged with ASIC ....................................... 223
220........ ASIC may require person to give information for document registers 223
221........ Written document setting out information from document registers is prima facie evidence of matters 224
Division 4--Other provisions relating to documents lodged with ASIC or required under this Act 225
222........ Certified copy or extract of document lodged with ASIC is admissible in evidence 225
223........ ASIC may destroy or dispose of certain documents ....................... 225
224........ Court may order lodgment of document etc. ................................... 225
225........ Offences relating to documents lodged with ASIC etc. ................... 226
Part 5-3--Concealment or falsification of credit books 229
Division 1--Introduction 229
226........ Guide to this Part ............................................................................ 229
Division 2--Prohibitions relating to the concealment or falsification of credit books 230
227........ Concealing etc. of credit books ....................................................... 230
228........ Falsification of credit books ............................................................ 231
229........ Precautions against falsification of credit books .............................. 232
Part 5-4--Fees imposed by the National Consumer Credit Protection (Fees) Act 2009 233
Division 1--Introduction 233
230........ Guide to this Part ............................................................................ 233
Division 2--Fees imposed by the National Consumer Credit Protection (Fees) Act 2009 234
231........ Fees are payable to the Commonwealth .......................................... 234
232........ Lodgment of document without payment of fee .............................. 234
233........ Doing act without payment of fee ................................................... 234
234........ Effect of sections 232 and 233 ........................................................ 234
235........ Waiver and refund of fees ............................................................... 235
236........ Debts due to the Commonwealth .................................................... 235
237........ Payment of fee does not give right to inspect or search ................... 235
Part 5-5--Other administrative matters 236
Division 1--Introduction 236
238........ Guide to this Part ............................................................................ 236
Division 2--Other administrative matters 237
239........ ASIC has general administration of this Act ................................... 237
240........ Obstructing or hindering ASIC etc. ................................................ 237
241........ Approved codes of conduct ............................................................ 237
242........ ASIC may arrange for use of computer programs to make decisions 238
243........ Qualified privilege for information given to ASIC .......................... 239
244........ ASIC certificate is prima facie evidence of matters ......................... 239
245........ Operator of approved external dispute resolution scheme may give information to ASIC 240
Chapter 6--Compliance and enforcement 241
Part 6-1--Investigations 241
Division 1--Introduction 241
246........ Guide to this Part ............................................................................ 241
Division 2--Investigations 242
247........ General powers of investigation ...................................................... 242
248........ Minister may direct investigations ................................................... 242
249........ Interim report on investigation ........................................................ 243
250........ Final report on investigation ............................................................ 244
251........ Distribution of report ...................................................................... 244
Part 6-2--Examination of persons 246
Division 1--Introduction 246
252........ Guide to this Part ............................................................................ 246
Division 2--Examination of persons 247
253........ Notice requiring appearance for examination .................................. 247
254........ Proceedings at examination ............................................................. 247
255........ Requirements made of examinee ..................................................... 247
256........ Examination to take place in private ................................................ 248
257........ Examinee's lawyer may attend ........................................................ 248
258........ Record of examination .................................................................... 249
259........ Giving to other persons copies of record ........................................ 249
260........ Copies given subject to conditions .................................................. 250
261........ Record to accompany report ............................................................ 250
Part 6-3--Inspection of books and audit information-gathering powers 251
Division 1--Introduction 251
262........ Guide to this Part ............................................................................ 251
Division 2--Inspection of books and audit information-gathering powers 252
263........ When certain powers may be exercised ........................................... 252
264........ ASIC may inspect books without charge ........................................ 252
265........ Notice to auditors concerning information and books ..................... 253
266........ Notice to produce books about credit activities ............................... 254
267........ Notice to produce documents in person's possession ..................... 254
268........ ASIC may authorise persons to require production of books, giving of information etc. 255
269........ Application for warrant to seize books not produced ...................... 256
270........ Grant of warrant .............................................................................. 256
271........ Powers if books produced or seized ............................................... 257
272........ Powers if books not produced ........................................................ 258
Part 6-4--Proceedings after an investigation 260
Division 1--Introduction 260
273........ Guide to this Part ............................................................................ 260
Division 2--Proceedings after an investigation 261
274........ ASIC may prosecute ....................................................................... 261
275........ ASIC may bring civil proceedings .................................................. 262
Part 6-5--Hearings 263
Division 1--Introduction 263
276........ Guide to this Part ............................................................................ 263
Division 2--Hearings 264
277........ Power to hold hearings ................................................................... 264
278........ General discretion to hold hearing in public or private .................... 264
279........ Request by person appearing at hearing that it take place in public . 264
280........ Certain hearings to take place in private .......................................... 265
281........ ASIC may restrict publication of certain material ............................ 265
282........ Who may be present when hearing takes place in private ................ 265
283........ Involvement of person entitled to appear at hearing ........................ 266
284........ Power to summon witnesses and take evidence .............................. 267
285........ Proceedings at hearings ................................................................... 268
286........ ASIC to take account of evidence and submissions ........................ 268
287........ Reference to court of question of law arising at hearing .................. 269
288........ Protection of ASIC members etc. .................................................... 269
Part 6-6--Offences 270
Division 1--Introduction 270
289........ Guide to this Part ............................................................................ 270
Division 2--Offences 271
290........ Contraventions of requirements made under this Chapter ............... 271
291........ False information ............................................................................ 272
292........ Obstructing person executing a warrant under this Chapter ............ 272
293........ Disrupting hearings ......................................................................... 273
294........ Concealing books relevant to investigation ..................................... 273
295........ Self-incrimination ............................................................................ 274
296........ Legal professional privilege ............................................................ 275
297........ Powers of court relating to contraventions of this Chapter .............. 276
Part 6-7--ASIC's powers in relation to contraventions of this Chapter 277
Division 1--Introduction 277
298........ Guide to this Part ............................................................................ 277
Division 2--ASIC's powers in relation to contraventions of this Chapter 278
299........ Application of this Part ................................................................... 278
300........ Orders by ASIC relating to credit contracts, mortgages, guarantees or consumer leases 278
301........ Orders under this Part ..................................................................... 279
Part 6-8--Evidentiary use of certain material 280
Division 1--Introduction 280
302........ Guide to this Part ............................................................................ 280
Division 2--Evidentiary use of certain material 281
303........ Statements made at an examination: proceedings against examinee . 281
304........ Statements made at an examination: other proceedings ................... 281
305........ Weight of evidence admitted under section 304 .............................. 282
306........ Objection to admission of statements made at examination ............. 283
307........ Copies of, or extracts from, certain books ....................................... 284
308........ Report under Part 6-1 ...................................................................... 284
309........ Exceptions to admissibility of report ............................................... 285
310........ Material otherwise admissible ......................................................... 286
Part 6-9--Miscellaneous provisions relating to compliance and enforcement 287
Division 1--Introduction 287
311........ Guide to this Part ............................................................................ 287
Division 2--Miscellaneous provisions relating to compliance and enforcement 288
312........ Requirement made of a body corporate ........................................... 288
313........ Evidence of authority ...................................................................... 288
314........ Giving documents to natural persons .............................................. 288
315........ Place and time for production of books ........................................... 289
316........ Application of Crimes Act and Evidence Act .................................. 289
317........ Allowances and expenses ............................................................... 289
318........ Expenses of investigation under Part 6-1 ........................................ 289
319........ Recovery of expenses of investigation ............................................ 290
320........ Compliance with this Chapter ......................................................... 291
321........ Effect of this Chapter ...................................................................... 291
322........ Enforcement of undertakings .......................................................... 291
Chapter 7--Miscellaneous 292
Part 7-1--Miscellaneous 292
Division 1--Introduction 292
323........ Guide to this Part ............................................................................ 292
Division 2--Liability of persons for conduct of their agents etc. 293
324........ Liability for bodies corporate for conduct of their agents, employees etc. 293
325........ Liability of persons (other than bodies corporate) for the conduct of their agents, employees etc. 294
326........ Regulations for the purposes of this Division ................................. 295
Division 3--Review of ASIC's decisions 296
327........ Review by Administrative Appeals Tribunal of decisions by ASIC under this Act 296
328........ Notice of reviewable decision and review rights ............................. 297
Division 4--Regulations 298
329........ Regulations ..................................................................................... 298
330........ Regulations--where proceedings may be brought .......................... 298
331........ Regulations--infringement notices ................................................. 298
Division 5--Other miscellaneous provisions 299
332........ Civil penalty provisions contravened or offences committed partly in and partly out of this jurisdiction 299
333........ Contravention of Act does not generally affect validity of transactions etc. 299
334........ Contracting out etc. ......................................................................... 299
335........ Indemnities ...................................................................................... 300
336........ Acquisition of property ................................................................... 301
337........ Minister may delegate prescribed functions and powers under this Act 301
Schedule 1--National Credit Code 302
Part 1--Preliminary 302
1............ Short title ......................................................................................... 302
2............ Interpretation generally .................................................................... 302
3............ Meaning of credit and amount of credit .......................................... 302
4............ Meaning of credit contract .............................................................. 303
5............ Provision of credit to which this Code applies ................................ 303
6............ Provision of credit to which this Code does not apply .................... 304
7............ Mortgages to which this Code applies ............................................ 308
8............ Guarantees to which this Code applies ............................................ 308
9............ Goods leases with option to purchase to be regarded as sale by instalments 308
10.......... Deciding application of Code to particular contracts for the sale of land by instalments 310
11.......... Deciding application of Code to particular contracts for the sale of goods by instalments 311
12.......... Deciding application of Code to particular contracts for the sale of goods by instalments under related contracts 312
13.......... Presumptions relating to application of Code .................................. 312
Part 2--Credit contracts 314
Division 1--Negotiating and making credit contracts 314
14.......... Credit contract to be in form of written contract document .............. 314
15.......... Other forms of contract ................................................................... 314
16.......... Precontractual disclosure ................................................................. 315
17.......... Matters that must be in contract document ...................................... 315
18.......... Form and expression of contract document ..................................... 321
19.......... Alteration of contract document ...................................................... 321
20.......... Copy of contract for debtor ............................................................. 321
21.......... When debtor may terminate contract ............................................... 321
22.......... Offence for noncompliance ............................................................. 322
Division 2--Debtor's monetary obligations 323
23.......... Prohibited monetary obligations ...................................................... 323
24.......... Offences related to prohibited monetary obligations ....................... 323
25.......... Loan to be in money or equivalent .................................................. 324
26.......... Early payments and crediting of payments ...................................... 324
26A....... Regulations about residential investment property .......................... 325
Division 3--Interest charges 326
27.......... Definitions relating to interest ......................................................... 326
28.......... Limit on interest charges ................................................................. 326
29.......... Early debit or payment of interest charges prohibited ...................... 327
30.......... Default interest ................................................................................ 327
30A....... Regulations about residential investment property .......................... 328
Division 4--Fees and charges 329
31.......... Prohibited credit fees or charges ..................................................... 329
32.......... Fees or charges passed on to other parties ...................................... 329
Division 5--Credit provider's obligation to account 330
33.......... Statements of account ...................................................................... 330
34.......... Information to be contained in statements of account ...................... 331
35.......... Opening balance must not exceed closing balance of previous statement 333
36.......... Statement of amount owing and other matters ................................. 334
37.......... Court may order statement to be provided ....................................... 335
38.......... Disputed accounts ........................................................................... 335
39.......... Dating and adjustment of debits and credits in accounts ................. 336
Division 6--Certain transactions not to be treated as contracts 337
40.......... Deferrals, waivers and changes under contracts .............................. 337
Part 3--Related mortgages and guarantees 338
Division 1--Mortgages 338
41.......... Application of Division ................................................................... 338
42.......... Form of mortgage ........................................................................... 338
43.......... Copy of mortgage for mortgagor .................................................... 338
44.......... Mortgages over all property void .................................................... 339
45.......... Restriction on mortgage of future property ..................................... 339
46.......... Mortgages and continuing credit contracts ...................................... 339
47.......... All accounts mortgages ................................................................... 339
48.......... Third party mortgages prohibited .................................................... 340
49.......... Maximum amount which may be secured ....................................... 340
50.......... Prohibited securities ........................................................................ 341
51.......... Assignment or disposal of mortgaged property by mortgagor ........ 342
52.......... Conditions on consent to assignment or disposal of property subject to mortgage 343
53.......... Offence for noncompliance ............................................................. 343
Division 2--Guarantees 345
54.......... Application of Division ................................................................... 345
55.......... Form of guarantee ........................................................................... 345
56.......... Disclosure ....................................................................................... 345
57.......... Copies of documents for guarantor ................................................. 345
58.......... Guarantor may withdraw before credit is provided ......................... 346
59.......... Extension of guarantee .................................................................... 346
60.......... Limitation of guarantor's liability .................................................... 347
61.......... Increase in guarantor's liabilities ..................................................... 348
62.......... Offence for noncompliance ............................................................. 348
Part 4--Changes to obligations under credit contracts, mortgages and guarantees 350
Division 1--Unilateral changes by credit provider 350
63.......... Application of Division ................................................................... 350
64.......... Interest rate changes ........................................................................ 350
65.......... Repayment changes ......................................................................... 352
66.......... Credit fees and charges changes ...................................................... 353
67.......... Changes to credit limits etc. in continuing credit contracts .............. 354
68.......... Other unilateral changes by credit provider ..................................... 354
69.......... Particulars of matters as changed only required to be given under this Division in certain cases 355
70.......... Prohibited increases in liabilities ..................................................... 355
Division 2--Changes by agreement of parties 356
71.......... Changes by agreement .................................................................... 356
Division 3--Changes on grounds of hardship and unjust transactions 357
72.......... Changes on grounds of hardship .................................................... 357
73.......... Notice of change ............................................................................. 358
74.......... Changes by court ............................................................................ 359
75.......... Credit provider may apply for variation of change .......................... 359
76.......... Court may reopen unjust transactions ............................................. 359
77.......... Orders on reopening of transactions ............................................... 362
78.......... Court may review unconscionable interest and other charges ......... 363
79.......... Applications by ASIC ..................................................................... 364
80.......... Time limit ........................................................................................ 364
81.......... Joinder of parties ............................................................................. 364
Part 5--Ending and enforcing credit contracts, mortgages and guarantees 366
Division 1--Ending of credit contract by debtor 366
82.......... Debtor's or guarantor's right to pay out contract ............................ 366
83.......... Statement of pay out figure ............................................................. 366
84.......... Court may determine pay out figure if credit provider does not provide a pay out figure 367
85.......... Surrender of mortgaged goods and goods subject to sale by instalments 367
86.......... Compensation to debtor or mortgagor ............................................. 370
87.......... One-off notice to be given the first time a direct debit default occurs 370
Division 2--Enforcement of credit contracts, mortgages and guarantees 372
88.......... Requirements to be met before credit provider can enforce credit contract or mortgage against defaulting debtor or mortgagor ........................................................................................ 372
89.......... Defaults may be remedied ............................................................... 375
90.......... Requirements to be met before credit provider can enforce guarantee against guarantor 375
91.......... Requirements to be met before credit provider can repossess mortgaged goods 376
92.......... Acceleration clauses ........................................................................ 376
93.......... Requirements to be met before credit provider can enforce an acceleration clause 377
Division 3--Postponement of enforcement proceedings 379
94.......... Postponement of exercise of rights ................................................. 379
95.......... Effect of negotiated postponement .................................................. 380
96.......... Postponement by court .................................................................... 380
97.......... Credit provider may apply for variation of postponement order ...... 381
Division 4--Enforcement procedures for goods mortgaged 382
98.......... Information as to location of mortgaged goods ............................... 382
99.......... Entry to residential property to take possession of goods ............... 382
100........ Court may order entry ..................................................................... 383
101........ Order for possession ....................................................................... 383
102........ Procedures to be followed by credit provider after taking possession of goods 383
103........ Mortgagor may nominate purchaser of goods taken by credit provider 384
104........ Sale of goods by credit provider ..................................................... 385
105........ Matters for which account can be debited after mortgagee sale of goods 386
106........ Compensation to mortgagor ............................................................ 386
Division 5--Enforcement expenses 387
107........ Recovery of enforcement expenses ................................................. 387
Division 6--Mortgagor's remedies 388
108........ Mortgagor may apply to regain possession of mortgaged goods .... 388
109........ Order for possession for mortgagor ................................................ 388
110........ Ancillary or consequential orders .................................................... 389
Part 6--Penalties for defaults of credit providers 390
Division 1--Penalties for breach of key disclosure and other requirements 390
111........ Key requirements ............................................................................ 390
112........ Application for order relating to key requirements .......................... 391
113........ Penalty may be imposed for contravention of key requirement ....... 391
114........ Penalty if application made by debtor or guarantor ......................... 393
115........ Payment of penalty to debtor or guarantor ...................................... 393
116........ Penalty if application made by a credit provider or ASIC ............... 394
117........ Payment of penalty .......................................................................... 394
118........ Compensation for debtor or guarantor ............................................ 394
119........ General provisions relating to applications by credit providers or ASIC 395
120........ ASIC may represent interests of debtors ......................................... 395
121........ Directions pending court's decision ................................................ 395
122........ Offences .......................................................................................... 396
123........ Time limit for application for orders under this Division ................ 396
Division 2--Other penalties 397
124........ Civil effect of other contraventions ................................................. 397
Part 7--Related sale contracts 398
Division 1--Interpretation and application 398
125........ Meaning of sale contract ................................................................ 398
126........ Sale contracts to which this Part applies .......................................... 398
127........ Linked credit providers and tied credit contracts ............................. 398
Division 2--Liability of credit providers for suppliers' misrepresentations 400
128........ Credit provider liable with respect to supplier's misrepresentations etc. about tied credit contract 400
Division 3--Liability of credit providers in relation to goods 401
129........ Right to damages under sale contract against both supplier and linked credit provider (cf. section 73 of the Trade Practices Act 1974) ......................................................................... 401
130........ Limits on debtor's right of action against linked credit provider (cf. section 73 of the Trade Practices Act 1974) 402
131........ Liability of supplier to linked credit provider (cf. section 73 of the Trade Practices Act 1974) 404
132........ Interest may be awarded (cf. section 73 of the Trade Practices Act 1974) 405
133........ Subrogation of credit provider (cf. section 73 of the Trade Practices Act 1974) 405
Division 4--Termination of related transactions 406
134........ Termination of sale contract which is conditional on obtaining credit 406
135........ Termination of (or recredit under) tied credit contract if sale contract terminated 406
136........ Termination of linked maintenance services contract if credit contract terminated 408
137........ Termination of contract under this Part to be in writing .................. 409
138........ Powers of court with respect to termination of contract under this Part 409
139........ Part 5 not to apply to termination of contract under this Part ........... 409
Division 5--Other provisions 410
140........ Requirement as to source of credit for goods or services ................ 410
141........ Prohibition on payment for goods or services by postdated bills of exchange or notes which exceed cash price of goods or services ....................................................................................... 410
Part 8--Related insurance contracts 411
142........ Interpretation and application .......................................................... 411
143........ Requirement to take out insurance or to insure with particular insurer or on particular terms 411
144........ Financing of insurance premiums over mortgaged property ........... 412
145........ Commission for consumer credit insurance .................................... 413
146........ Supply of copy of credit-related insurance contract by insurer ........ 413
147........ Rejection of debtor's proposal for insurance ................................... 414
148........ Termination of consumer credit insurance contract if credit contract terminated 414
149........ Termination of insurance contract over mortgaged property if credit contract terminated 415
Part 9--Advertising and related conduct 417
150........ Advertising ..................................................................................... 417
151........ Persons liable for advertisements .................................................... 418
152........ Defence ........................................................................................... 418
153........ Interest rates which may be disclosed ............................................. 418
154........ False or misleading representations ................................................. 419
155........ Harassment ..................................................................................... 419
156........ Canvassing of credit at home .......................................................... 419
Part 10--Comparison rates 420
Division 1--Preliminary 420
157........ Object of Part .................................................................................. 420
158........ Part not to apply to continuing credit contracts ................................ 420
159........ Definitions ...................................................................................... 420
Division 2--Comparison rate in credit advertising 422
160........ Comparison rate mandatory in advertisements containing annual percentage rate 422
161........ The relevant comparison rate ........................................................... 422
162........ Information about comparison rate .................................................. 422
163........ Warning about comparison rate ....................................................... 423
164........ Other requirements for comparison rate .......................................... 423
Division 3--Comparison rate in other documents 424
165........ Comparison rates in documents other than credit advertising .......... 424
Division 4--Miscellaneous 425
166........ Calculation of comparison rates ...................................................... 425
167........ Compliance grace period following changes in interest or fees ....... 425
168........ Regulations--exemptions and other matters ................................... 425
Part 11--Consumer leases 426
Division 1--Interpretation and application 426
169........ Meaning of consumer lease ............................................................ 426
170........ Consumer leases to which this Part applies ..................................... 426
171........ Consumer leases to which this Part does not apply ......................... 427
172........ Presumptions relating to application of this Part ............................. 428
Division 2--Form of and information to be included in consumer leases 429
173........ Form of consumer lease .................................................................. 429
174........ Disclosures in consumer leases ....................................................... 429
175........ Copy of lease etc. for lessee ............................................................ 430
176........ Further goods and deferrals or waivers under consumer leases ...... 430
Division 3--Other provisions applicable to consumer leases 432
177........ Application of certain Code provisions to consumer leases ............ 432
178........ Notice of repossession .................................................................... 432
179........ Termination of lease ........................................................................ 433
Part 12--Miscellaneous 434
Division 1--Tolerances and assumptions 434
180........ Tolerances and assumptions relating to information ........................ 434
181........ Tolerances relating to contracts and other documents ...................... 435
182........ Regulations ..................................................................................... 435
Division 2--Documentary provisions 436
183........ Form of notices ............................................................................... 436
184........ Legibility and language ................................................................... 436
185........ Copies of contracts and other documents ........................................ 437
186........ Signing of documents ..................................................................... 437
187........ Electronic transactions and documents ............................................ 438
Division 3--General provisions 439
188........ Assignment by credit provider ........................................................ 439
189........ Assignment by debtor, mortgagor or guarantor .............................. 439
190........ Appropriation of payments ............................................................. 439
191........ Contracting out ................................................................................ 440
192........ Indemnities ...................................................................................... 440
193........ Effect of noncompliance .................................................................. 441
194........ Giving notice or other document ..................................................... 441
195........ Manner of giving notice or other document .................................... 443
196........ Date of notice or other document .................................................... 444
197........ Extensions of time ........................................................................... 444
198........ Orders of court ................................................................................ 444
199........ Conduct of agents and related matters ............................................. 444
Division 4--Provisions relating to offences 446
200........ Offences by officers, agents or employees ...................................... 446
201........ Offences by corporations ................................................................ 446
202........ Limitations ...................................................................................... 446
203........ Application of section 4K of the Crimes Act 1914 .......................... 446
Division 5--Exemptions from this Code 447
203A..... Exemptions by ASIC ...................................................................... 447
203B..... Exemptions by the regulations ........................................................ 447
Part 13--Principal definitions 448
204........ Principal definitions ........................................................................ 448
Part 14--Miscellaneous provisions relating to interpretation 457
Division 1--Preliminary 457
205........ Displacement of Part by contrary intention ..................................... 457
Division 2--General 458
206........ Material that is, and is not, part of this Code ................................... 458
207........ References to particular Acts and to enactments .............................. 458
208........ Compliance with forms ................................................................... 458
Division 3--Terms and references 460
209........ Provisions relating to defined terms and gender and number .......... 460
210........ Meaning of may and must etc. ........................................................ 460
211........ Effect of express references to bodies corporate and individuals .... 460
212........ Reference to certain provisions of Code .......................................... 461
213........ Reference to provisions of this Code or an Act is inclusive ............ 461
Division 4--Functions and powers 462
214........ Power to make instrument or decision includes power to amend or repeal 462
215........ Matters for which statutory instruments may make provision ......... 462
216........ Presumption of validity and power to make .................................... 463
217........ Exercise of powers between enactment and commencement ........... 464
Division 5--Distance, time and age 467
218........ Matters relating to distance, time and age ........................................ 467
Notes 469
An Act relating to credit, and for related purposes
Notes to
the
National Consumer Credit Protection Act
2009 Note 1 The National Consumer Credit Protection Act 2009 as
shown in this compilation comprises Act No. 134, 2009 amended as indicated
in the Tables below. For all relevant information pertaining to application, saving
or transitional provisions see Table A. Table of Acts
|
Act |
Number |
Date |
Date of commencement |
Application, saving or transitional provisions |
|
134, 2009 |
15 Dec 2009 |
Ss. 3-337 and Schedule 1: 1 Apr 2010 (see F2010L00301) |
|
|
|
9, 2010 |
3 Mar 2010 |
3 Mar 2010 |
-- |
|
|
Statute Law Revision Act 2011 |
5, 2011 |
22 Mar 2011 |
Schedule 1 (items 66-68): Royal Assent |
-- |
|
Acts Interpretation Amendment Act 2011 |
46, 2011 |
27 June 2011 |
Schedule 2 (items 781-784) and Schedule 3 (items 10, 11): 27 Dec 2011 |
Sch. 3 (items 10, 11) |
|
National Consumer Credit Protection Amendment (Home Loans and Credit Cards) Act 2011 |
84, 2011 |
25 July 2011 |
Schedule 1 (items 1-5): 1 Jan 2012 |
-- |
Table of Amendments
|
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
|
|
Provision affected |
How affected |
|
Chapter 1 |
|
|
Part 1-2 |
|
|
Division 2 |
|
|
am. No. 9, 2010; Nos. 46 and 84, 2011 |
|
|
Part 1-3 |
|
|
Division 2 |
|
|
am. No. 9, 2010; No. 46, 2011 |
|
|
Note to s. 18(1)................... |
rep. No. 9, 2010 |
|
Subhead. to s. 19(3)........... |
rs. No. 9, 2010 |
|
Subhead. to s. 19(6)........... |
ad. No. 9, 2010 |
|
am. No. 9, 2010 |
|
|
am. No. 9, 2010 |
|
|
Chapter 3 |
|
|
Part 3-2 |
|
|
Heading to Part 3-2............ |
rs. No. 84, 2011 |
|
Part 3-2A |
|
|
Part 3-2A............................. |
ad. No. 84, 2011 |
|
Division 1 |
|
|
S. 133A................................ |
ad. No. 84, 2011 |
|
Division 2 |
|
|
Ss. 133AA-133AF............... |
ad. No. 84, 2011 |
|
Part 3-5 |
|
|
Division 2 |
|
|
am. No. 5, 2011 |
|
|
Schedule 1 |
|
|
Part 4 |
|
|
Division 3 |
|
|
am. No. 5, 2011 |
|
|
Part 5 |
|
|
Division 3 |
|
|
am. No. 5, 2011 |
|
|
Part 13 |
|
|
am. No. 46, 2011 |
|
Note 2
National Consumer Credit Protection Amendment (Home Loans and Credit Cards) Act 2011 (No. 84, 2011)
The following amendments commence on 1 July 2012:
Schedule 1
Insert:
annual percentage rate has the same meaning as in section 27 of the National Credit Code.
Insert:
continuing credit contract has the same meaning as in section 204 of the National Credit Code.
Insert:
credit card: see subsection 133BA(2).
Insert:
credit card contract: see subsection 133BA(1).
Insert:
credit limit increase invitation, in relation to a credit card contract: see subsection 133BE(5).
14 Subsection 5(1) (definition of Key Facts Sheet)
Repeal the definition, substitute:
(a) for a credit card contract--see section 133BB; and
(b) for a standard home loan--see section 133AB.
Insert:
linked: for when a credit card is linked to a credit card contract, see subsection 133BA(3).
Insert:
use of a credit card: see subsection 133BA(4).
18 Subsection 6(2) (note)
Omit "credit contracts for credit cards", substitute "credit card contracts".
19 After Part 3-2A
Insert:
Part 3-2B--Licensees that are credit providers under credit contracts: additional rules relating to credit card contracts
This Part has rules that apply to licensees that are credit providers under credit card contracts. It applies in addition to the general rules in Part 3-2.
Division 2 defines key concepts used in this Part (including credit card contract and credit card).
Division 3 imposes requirements aimed at ensuring a consumer obtains a Key Facts Sheet before entering into a credit card contract.
Division 4 imposes restrictions on a licensee making offers etc. to increase the credit limit of a credit card contract.
Division 5 provides for consumers to be notified if a credit card is used in excess of its credit limit, and restricts the charging of fees etc. for use of a credit card in excess of its credit limit.
Division 6 imposes requirements relating to the order of application of payments made under credit card contracts. Generally, a payment must be applied against higher interest rate debts first.
Division 2--Credit card contracts and related concepts
133BA Meaning of credit card contract etc.
Meaning of credit card contract
(1) A credit card contract is a continuing credit contract under which credit is ordinarily obtained only by the use of a credit card.
Meaning of credit card
(2) A credit card is:
(a) a card of a kind commonly known as a credit card; or
(b) a card of a kind that persons carrying on business commonly issue to their customers, or prospective customers, for use in obtaining goods or services from those persons on credit; or
(c) anything else that may be used as a card referred to in paragraph (a) or (b).
Meaning of linked to a credit card contract
(3) A credit card is linked to a credit card contract if:
(a) the credit card is issued under or in relation to the contract; and
(b) the credit card can be used to obtain credit under the contract as referred to in subsection (1).
Meaning of use of a credit card
(4) A reference to the use of a credit card to obtain cash, goods or services includes a reference to the use or provision of the number of the credit card to obtain cash, goods or services.
Articles that can be used as credit cards and in other ways
(5) If a credit card can also be used in other ways (for example, as a debit card, or to access other accounts):
(a) the article is a credit card (despite the fact that it can also be used in those other ways); but
(b) the provisions of this Act that are expressed to apply in relation to credit cards do not apply to the article in so far as it can be used in those other ways.
Division 3--Key Facts Sheets for credit card contract
133BB What is a Key Facts Sheet for a credit card contract?
A Key Facts Sheet for a credit card contract is a document:
(a) that contains the information relating to the contract that is required by the regulations; and
(b) that complies with any other requirements prescribed by the regulations.
133BC Application form for credit card contract to include up-to-date Key Facts Sheet
Requirement
(1) If a licensee makes available to consumers an application form that can be used to apply for a credit card contract under which the licensee would be the credit provider, the licensee must ensure that the application form includes a Key Facts Sheet for the contract that contains up-to-date information.
Civil penalty: 2,000 penalty units.
Offence
(2) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 50 penalty units.
Circumstances in which application form may, for limited period, include out-of-date Key Facts Sheet
(3) The regulations may prescribe circumstances in which a licensee may, for a period prescribed by the regulations, make available an application form that includes a Key Facts Sheet containing information that has ceased to be up-to-date.
Note: If a consumer applies using such an application form, the consumer must be given the up-to-date information: see paragraph 133BD(1)(b).
(4) If a licensee makes available an application form that includes a Key Facts Sheet containing information that has ceased to be up-to-date, it is a defence for the purposes of subsections (1) and (2) if the application form was made available as permitted by regulations made for the purpose of subsection (3).
Note: For the purpose of subsection (2), a defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code).
133BD Credit provider not to enter into credit card contract unless Key Facts Sheet has been provided etc.
Requirement
(1) If a consumer applies to a licensee for a credit card contract under which the licensee would be the credit provider, the licensee must not enter into, or offer to enter into, the contract unless:
(a) the application is made using an application form that includes a Key Facts Sheet for the contract that contains up-to-date information; or
(b) the following conditions are satisfied:
(i) the application is made using an application form that includes a Key Facts Sheet for the contract that contains information that has ceased to be up-to-date;
(ii) the consumer has been provided with the up-to-date information in accordance with any requirements prescribed by the regulations; or
(c) the consumer has otherwise been provided with a Key Facts Sheet for the contract that contains up-to-date information in accordance with any requirements prescribed by the regulations.
Civil penalty: 2,000 penalty units.
Offence
(2) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 100 penalty units.
Division 4--Offers etc. to increase credit limit of credit card contract
133BE Credit provider not to offer etc. to increase credit limit of credit card contract
Requirement
(1) A licensee who is the credit provider under a credit card contract must not make a credit limit increase invitation in relation to the contract.
Civil penalty: 2,000 penalty units.
Note 1: Subsection 133BF(1) provides a defence to liability under this subsection.
Note 2: For other provisions that must be complied with in relation to increasing credit limits, see:
(a) Divisions 3 and 4 of Part 3-2; and
(b) subsection 67(4) of the National Credit Code.
Offence
(2) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 100 penalty units.
Note: Subsection 133BF(1) provides a defence to liability under this subsection.
Strict liability offence
(3) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 10 penalty units.
Note: Subsection 133BF(1) provides a defence to liability under this subsection.
(4) Subsection (3) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.
Meaning of credit limit increase invitation
(5) A licensee makes a credit limit increase invitation, in relation to a credit card contract, if:
(a) the licensee gives a written communication that relates to the contract to the consumer who is the debtor under the contract; and
(b) one or more of the following conditions is satisfied in relation to the communication:
(i) the communication offers to increase the credit limit of the contract;
(ii) the communication invites the consumer to apply for an increase of the credit limit of the contract;
(iii) the licensee gave the communication to the consumer for the purpose (or for purposes including the purpose) of encouraging the consumer to consider applying for an increase of the credit limit of the contract.
(6) The regulations may make provisions that apply to determining whether a written communication is covered by the definition in subsection (5).
133BF Informed consent of the consumer to the making of credit limit increase invitations
(1) For the purposes of applying subsections 133BE(1), (2) and (3) to the making of a credit limit increase invitation, it is a defence if:
(a) the licensee has, in accordance with this section, obtained express consent, from the consumer who is the debtor under the credit card contract, to the licensee making credit limit increase invitations; and
(b) the consent has not been withdrawn in accordance with this section.
Note 1: The consent must be express, and cannot be implied from the actions of the consumer or from other circumstances.
Note 2: The licensee must keep records of consents and withdrawals: see section 133BG.
Note 3: For the purposes of subsections 133BE(2) and (3), a defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code).
(2) The consumer may consent to the licensee making credit limit increase invitations.
(3) The consent must be expressed to relate to any credit limit increase invitations that the licensee may, from time to time, make to the consumer.
Note: A consent expressed in more limited terms is not effective for the purpose of this section.
(4) Before obtaining the consumer's consent, the licensee must inform the consumer of the following matters:
(a) that the consumer has a discretion whether to apply for any increase of the credit limit;
(b) that the licensee has a discretion whether to grant any increase applied for;
(c) that the consumer may withdraw the consent at any time;
(d) any other matters prescribed by the regulations.
(5) The consent may be obtained before or after the credit card contract is entered into, but it does not cover any credit limit increase invitation made before the consent is obtained.
(6) The consumer may withdraw the consent at any time.
(7) The regulations may prescribe requirements to be complied with in relation to any of the following:
(a) giving consent under subsection (2) or withdrawing consent under subsection (6);
(b) informing the consumer of matters under subsection (4).
133BG Records of consents and withdrawals to be kept
Requirement
(1) A licensee must, in accordance with the requirements prescribed by the regulations, keep a record of:
(a) consents the licensee obtains under section 133BF; and
(b) withdrawals of such consents.
Civil penalty: 2,000 penalty units.
Offence
(2) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 50 penalty units.
Division 5--Use of credit card in excess of credit limit
133BH Credit provider to notify consumer of use of credit card in excess of credit limit
Regulations may require licensee to notify consumer of use of credit card in excess of credit limit
(1) The regulations may require a licensee who is the credit provider under a credit card contract to notify the consumer who is the debtor under the contract if the licensee becomes aware that the debtor has used a credit card that is linked to the contract to obtain cash, goods or services in excess of the credit limit for the contract.
(2) Without limiting subsection (1), regulations made for the purpose of that subsection may deal with:
(a) how and when the licensee must notify the consumer; and
(b) the matters that must be included in the notification.
Requirement to comply with the regulations
(3) A licensee must comply with regulations made for the purpose of subsection (1).
Civil penalty: 2,000 penalty units.
Offence
(4) A person commits an offence if:
(a) the person is subject to a requirement under subsection (3); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 50 penalty units.
133BI Credit provider not to impose fees etc. because credit card used in excess of credit limit
(1) If a credit card is used to obtain cash, goods or services in excess of the credit limit for the credit card contract, the licensee who is the credit provider under the contract must not, because the credit limit was exceeded, impose any liability to pay fees or charges, or a higher rate of interest, on the consumer who is the debtor under the contract unless:
(a) the licensee has, in accordance with this section, obtained express consent from the consumer covering the imposition of the fees or charges, or the higher rate of interest; and
(b) the consent has not been withdrawn; and
(c) any other requirements prescribed by the regulations are complied with.
Note 1: The consent must be express, and cannot be implied from the actions of the consumer or from other circumstances.
Note 2: The licensee must keep records of consents and withdrawals: see section 133BJ.
(2) The consumer may consent to the licensee imposing a liability to pay fees or charges, or a higher rate of interest, if the credit card is used to obtain cash, goods or services in excess of the credit limit.
(3) Before obtaining the consumer's consent, the licensee must, in accordance with the regulations, inform the consumer of any matters prescribed by the regulations.
(4) The consent may be obtained before or after the credit card contract is entered into, but it does not cover any fees, charges or interest imposed before the consent is obtained.
(5) The consumer may withdraw the consent at any time.
(6) The regulations may prescribe requirements to be complied with in relation to giving consent under subsection (2), or withdrawing consent under subsection (5).
(7) For the purpose of subsection 23(1) of the National Credit Code (and the other provisions of the Code that refer to, or apply in relation to, that subsection):
(a) a liability to pay a fee or charge that is imposed contrary to subsection (1) of this section is taken to be a credit fee or charge that is prohibited by the Code; and
(b) a liability to pay interest that is imposed contrary to subsection (1) of this section is taken to be an interest charge under the credit card contract exceeding the amount that may be charged consistently with the Code.
Note: For the civil and criminal consequences of contravening subsection 23(1) of the National Credit Code, see subsections 23(2) to (4), section 24, and Part 6, of the Code.
133BJ Records of consents and withdrawals to be kept
Requirement
(1) A licensee must, in accordance with the requirements prescribed by the regulations, keep a record of:
(a) consents the licensee obtains under section 133BI; and
(b) withdrawals of such consents.
Civil penalty: 2,000 penalty units.
Offence
(2) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 50 penalty units.
Division 6--Order of application of payments made under credit card contracts
133BO Credit provider to apply payments in accordance with this Division
Requirement
(1) If a payment (the relevant payment) is made under a credit card contract:
(a) by or on behalf of the consumer who is the debtor under the contract; and
(b) to the licensee who is the credit provider under the contract;
the licensee must apply the payment in accordance with this Division (despite any provision to the contrary in the contract, any other contract or instrument or any other law).
Civil penalty: 2,000 penalty units.
(2) To avoid doubt, an amount:
(a) that is credited to the consumer's account by the licensee; and
(b) that is, or is in the nature of:
(i) a total or partial refund in relation to a transaction entered into using the credit card; or
(ii) a total or partial reversal of such a transaction;
is not a payment to which subsection (1) applies.
Offence
(3) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 100 penalty units.
Strict liability offence
(4) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 10 penalty units.
(5) Subsection (4) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.
133BP Agreement to apply payment against particular amount owed
(1) This section applies if, at the time when the licensee applies the relevant payment, the following conditions are satisfied:
(a) the consumer has requested the licensee to apply certain payments made under the credit card contract against a particular amount:
(i) owed by the consumer to the licensee under the contract; and
(ii) in relation to which any other requirements prescribed by the regulations are satisfied;
(b) the licensee has agreed to the request;
(c) the relevant payment is a payment to which the request relates;
(d) neither the request, nor the agreement to the request, has been withdrawn in accordance with this section.
(2) The licensee must apply the relevant payment against the amount referred to in paragraph (1)(a) in accordance with the request.
(3) The consumer may withdraw the request at any time.
(4) The licensee may withdraw the agreement to the request, but only if the consumer has consented to the withdrawal.
(5) The regulations may prescribe requirements to be complied with in relation to any of the following:
(a) making a request under paragraph (1)(a);
(b) agreeing to a request under paragraph (1)(b);
(c) withdrawing a request under subsection (3);
(d) withdrawing agreement to a request under subsection (4);
(e) consenting under subsection (4) to the withdrawal of agreement to a request.
133BQ Application of payment against last statement balance, with higher interest debts to be discharged first
(1) Subject to subsection (2), the licensee must apply the relevant payment (or any part of the relevant payment remaining after complying with section 133BP) against so much as remains owing of the closing balance shown in the last statement of account for the credit card contract that the licensee gave the consumer before the relevant payment was made.
(2) If different annual percentage rates apply to different parts of that closing balance, the licensee must apply the relevant payment (or any remaining part of the payment) first to the part of that balance to which the highest rate applies, next to the part of that balance to which the next highest rate applies, and so on.
133BR Application of any remaining part of the relevant payment
The licensee must apply any part of the relevant payment remaining after complying with sections 133BP and 133BQ in accordance with the terms of the credit card contract.
20 Subsection 23(1) of the National Credit Code (note)
Omit "Note", substitute "Note 1".
21 At the end of subsection 23(1) of the National Credit Code
Add:
Note 2: This subsection also applies to liabilities imposed contrary to section 133BI of the National Credit Act: see subsection (7) of that section.
22 At the end of Division 3 of Part 2 of the National Credit Code
Add:
30B Regulations about credit card contracts
(1) The regulations may make provision in relation to any of the following matters relating to interest charges under credit card contracts:
(a) the day from which a daily percentage rate may be applied, and the balance (or the part of a balance) to which it may be applied;
(b) how matters relating to interest charges may be described in:
(i) credit card contracts; and
(ii) other documents or advertisements published or broadcast by or on behalf of licensees who are credit providers under credit card contracts.
(2) Regulations made for the purpose of subsection (1) may:
(a) provide for offences against the regulations; and
(b) provide for civil penalties for contraventions of the regulations.
(3) The penalties for offences referred to in paragraph (2)(a) must not be more than 50 penalty units for an individual or 250 penalty units for a body corporate.
(4) The civil penalties referred to in paragraph (2)(b) must not be more than 500 penalty units for an individual or 2,500 penalty units for a body corporate.
(5) This Division has effect subject to regulations made for the purpose of subsection (1).
23 Paragraph 33(2)(a) of the National Credit Code
Omit "continuing credit contract under which credit is ordinarily obtained only by the use of a card", substitute "credit card contract".
24 Subsection 34(5) of the National Credit Code
Omit "continuing credit contract under which credit is ordinarily obtained only by the use of a card", substitute "credit card contract".
25 Subsection 204(1) of the National Credit Code
Insert:
credit card has the same meaning as in subsection 133BA(2) of the National Credit Act.
26 Subsection 204(1) of the National Credit Code
Insert:
credit card contract has the same meaning as in subsection 133BA(1) of the National Credit Act.
27 Subsection 204(1) of the National Credit Code (paragraph (b) of the definition of credit fees and charges)
Omit "continuing credit contracts under which credit is ordinarily obtained only by the use of a card", substitute "credit card contracts".
28 Subsection 204(1) of the National Credit Code
Insert:
credit limit has the same meaning as in section 5 of the National Credit Act.
As at 5 January 2012 the amendments are not incorporated in this compilation.
Table A
Application, saving or transitional provisions
Acts Interpretation Amendment Act 2011 (No. 46, 2011)
Schedule 3
10 Saving--appointments
The amendments made by Schedule 2 do not affect the validity of an appointment that was made under an Act before the commencement of this item and that was in force immediately before that commencement.
11 Transitional regulations
The Governor-General may make regulations prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments and repeals made by Schedules 1 and 2.