Commonwealth Numbered Acts Commonwealth Numbered Acts
No. 134, 2009
An Act relating to credit, and for related purposes
Contents
Part 1‑1--Introduction 2
1......................... Short title............................................................................... 2
2......................... Commencement...................................................................... 2
3......................... The National Credit Code...................................................... 3
Part 1‑2--Definitions 4
Division 1--Introduction 4
4......................... Guide to this Part................................................................... 4
Division 2--The Dictionary 5
5......................... The Dictionary....................................................................... 5
Division 3--Definitions relating to the meaning of credit activity 17
6......................... Meaning of credit activity..................................................... 17
7......................... Meaning of credit service..................................................... 18
8......................... Meaning of credit assistance................................................ 18
9......................... Meaning of acts as an intermediary..................................... 19
10....................... Assignees of credit providers, lessors, mortgagees and beneficiaries of a guarantee 19
Division 4--Other definitions 21
11....................... Meaning of approved external dispute resolution scheme... 21
12....................... When a business is carried on in this jurisdiction................ 21
13....................... Meaning of misleading......................................................... 21
14....................... Meaning of person--generally includes a partnership........ 22
15....................... Meaning of person--generally includes multiple trustees... 22
16....................... Qualified privilege................................................................ 24
Part 1‑3--Application of this Act and the Transitional Act 25
Division 1--Introduction 25
17....................... Guide to this Part................................................................. 25
Division 2--Constitutional basis and application of this Act and the Transitional Act 26
18....................... Constitutional basis for this Act and the Transitional Act.. 26
19....................... Meaning of referring State................................................... 27
20....................... Meaning of referred credit matter........................................ 29
21....................... General application of this Act and the Transitional Act.... 30
22....................... When Acts bind Crown....................................................... 31
Division 3--Interaction between the Commonwealth credit legislation and State and Territory laws 32
23....................... Concurrent operation intended............................................ 32
24....................... When Commonwealth credit legislation does not apply..... 32
25....................... Avoiding direct inconsistency between Commonwealth and State and Territory laws 33
26....................... Regulations to deal with interaction between laws.............. 34
Chapter 2--Licensing of persons who engage in credit activities 37
Part 2‑1--Requirement to be licensed to engage in credit activities 37
Division 1--Introduction 37
27....................... Guide to this Part................................................................. 37
Division 2--Engaging in credit activities without a licence 38
28....................... Application of this Division................................................ 38
29....................... Prohibition on engaging in credit activities without a licence 38
Division 3--Other prohibitions relating to the requirement to be licensed and to credit activities 40
30....................... Prohibitions on holding out and advertising etc................... 40
31....................... Prohibition on conducting business with unlicensed persons 41
32....................... Prohibition on charging a fee etc.......................................... 41
33....................... Prohibition on giving misleading information etc................. 42
Part 2‑2--Australian credit licences 43
Division 1--Introduction 43
34....................... Guide to this Part................................................................. 43
Division 2--Australian credit licences 44
35....................... Australian credit licences..................................................... 44
Division 3--How to get an Australian credit licence 45
36....................... Applying for a licence.......................................................... 45
37....................... When a licence may be granted--applicants other than ADIs 45
38....................... When a licence may be granted--ADIs............................... 47
39....................... Regulations may prescribe streamlined process for other applicants 48
40....................... Licences must not be granted to certain applicants............. 48
41....................... Applicant must be given hearing before refusal of licence... 48
42....................... Notice of grant or refusal of licence and date of effect......... 49
43....................... Australian credit licence numbers........................................ 49
44....................... Basis on which licence is granted......................................... 49
Division 4--Conditions on an Australian credit licence 51
45....................... The conditions on the licence............................................... 51
46....................... Licence conditions--special procedures for APRA‑regulated bodies 52
Division 5--Obligations of licensees 54
47....................... General conduct obligations of licensees.............................. 54
48....................... Requirements for compensation arrangements.................... 55
49....................... Obligation to provide a statement or obtain an audit report if directed by ASIC 56
50....................... Obligation to give ASIC information required by the regulations 58
51....................... Obligation to provide ASIC with assistance if reasonably requested 59
52....................... Obligation to cite Australian credit licence number............. 59
53....................... Obligation to lodge annual compliance certificate................ 60
Division 6--When a licence can be suspended, cancelled or varied 62
Subdivision A--Suspensions and cancellations 62
54....................... Suspension or cancellation without hearing......................... 62
55....................... Suspension or cancellation after offering a hearing.............. 63
56....................... Suspension and cancellation--special procedures for APRA‑regulated bodies 64
Subdivision B--Variations 65
57....................... Varying licences................................................................... 65
Subdivision C--Miscellaneous rules about suspensions, cancellations and variations 65
58....................... Effect of suspension............................................................ 65
59....................... Revocation of suspension.................................................... 65
60....................... Date of effect, notice and publication of variation, cancellation or suspension etc. 66
61....................... Statement of reasons............................................................ 66
62....................... ASIC may allow licence to continue in force....................... 66
Part 2‑3--Credit representatives and other representatives of licensees 67
Division 1--Introduction 67
63....................... Guide to this Part................................................................. 67
Division 2--Authorisation of credit representatives 68
64....................... Licensee may authorise credit representatives..................... 68
65....................... Credit representative that is a body corporate may sub‑authorise natural persons as credit representatives............................................................................................. 69
66....................... Credit representative of 2 or more licensees........................ 70
67....................... A person cannot be a credit representative in relation to credit activities authorised by a person's licence............................................................................................. 71
68....................... Variation and revocation of authorisations and sub‑authorisations 71
69....................... Obligation not to give authorisation that has no effect........ 72
70....................... Obligation to vary or revoke authorisation that ceases to have effect 72
71....................... Obligation to notify ASIC etc. about credit representatives 73
72....................... Credit representative numbers............................................. 75
Division 3--Information about representatives 76
73....................... ASIC may give licensee information about representatives. 76
Division 4--Liability of licensees for representatives 79
74....................... Application of this Division................................................ 79
75....................... Responsibility if representative of only one licensee.......... 79
76....................... Representatives of multiple licensees.................................. 79
77....................... Responsibility extends to loss or damage suffered by client 80
78....................... Effect of this Division.......................................................... 80
Part 2‑4--Banning or disqualification of persons from engaging in credit activities 82
Division 1--Introduction 82
79....................... Guide to this Part................................................................. 82
Division 2--Banning orders 83
80....................... ASIC's power to make a banning order............................... 83
81....................... What is a banning order?..................................................... 84
82....................... Effect of banning orders....................................................... 85
83....................... Variation or cancellation of banning orders.......................... 86
84....................... Date of effect, notice and publication of banning order, variation or cancellation 86
85....................... Statement of reasons............................................................ 87
Division 3--Disqualification by the court 88
86....................... Disqualification by the court............................................... 88
Part 2‑5--Financial records, trust accounts and audit reports 89
Division 1--Introduction 89
87....................... Guide to this Part................................................................. 89
Division 2--Financial records of licensees 90
88....................... Obligation to keep financial records..................................... 90
89....................... How financial records are to be kept................................... 91
90....................... Language of financial records............................................... 91
91....................... Location of financial records................................................ 91
92....................... Information to be shown in financial records....................... 92
93....................... Regulations may impose additional requirements................ 92
94....................... Financial records taken to be made with licensee's authority 93
95....................... Obligation to retain financial records for 7 years................. 93
96....................... Financial records are prima facie evidence of matters.......... 94
Division 3--Trust accounts of credit service licensees 95
97....................... Application of this Division................................................ 95
98....................... Obligation for credit service licensees to maintain trust account 95
99....................... Obligations in relation to trust account money.................... 96
100..................... Obligation to lodge trust account statement and trust account audit report 97
101..................... Time of lodgment of trust account statement and trust account audit report 98
Division 4--Matters relating to audit reports 100
102..................... Auditor's right of access to records, information etc......... 100
103..................... Auditor's fees and expenses.............................................. 101
104..................... Auditor to report on certain matters.................................. 101
105..................... Qualified privilege for auditor etc...................................... 102
106..................... Regulations in relation to audit reports etc........................ 103
Part 2‑6--Exemptions and modifications relating to this Chapter 104
Division 1--Introduction 104
107..................... Guide to this Part............................................................... 104
Division 2--Exemptions and modifications relating to this Chapter 105
108..................... Provisions to which this Part applies................................ 105
109..................... Exemptions and modifications by ASIC............................ 105
110..................... Exemptions and modifications by the regulations............. 107
Chapter 3--Responsible lending conduct 108
Part 3‑1--Licensees that provide credit assistance in relation to credit contracts 108
Division 1--Introduction 108
111..................... Guide to this Part............................................................... 108
112..................... Application of this Part..................................................... 109
Division 2--Credit guide of credit assistance providers 110
113..................... Credit guide of credit assistance providers........................ 110
Division 3--Quote for providing credit assistance etc. in relation to credit contracts 113
114..................... Quote for providing credit assistance etc........................... 113
Division 4--Obligations of credit assistance providers before providing credit assistance for credit contracts 115
115..................... Obligations of credit assistance providers before providing credit assistance for credit contracts 115
116..................... Preliminary assessment of unsuitability of the credit contract 116
117..................... Reasonable inquiries etc. about the consumer.................... 116
118..................... When the credit contract must be assessed as unsuitable--entering contract or increasing the credit limit........................................................................................... 117
119..................... When the credit contract must be assessed as unsuitable--remaining in credit contract 118
120..................... Providing the consumer with the preliminary assessment. 119
Division 5--Fees, commissions etc. relating to credit contracts 121
121..................... Fees, commissions etc. relating to credit contracts............ 121
122..................... No profiting from fees etc. paid to third parties................ 122
Division 6--Prohibition on suggesting, or assisting with, unsuitable credit contracts 123
123..................... Prohibition on suggesting or assisting consumers to enter, or increase the credit limit under, unsuitable credit contracts............................................................................. 123
124..................... Prohibition on suggesting to consumers to remain in unsuitable credit contracts 125
Part 3‑2--Licensees that are credit providers under credit contracts 127
Division 1--Introduction 127
125..................... Guide to this Part............................................................... 127
Division 2--Credit guide of credit providers 128
126..................... Credit guide of credit providers......................................... 128
127..................... Credit guide of credit providers who are assignees............ 129
Division 3--Obligations of credit providers before entering credit contracts or increasing credit limits 131
128..................... Obligations of credit providers before entering credit contracts or increasing credit limits 131
129..................... Assessment of unsuitability of the credit contract............ 131
130..................... Reasonable inquiries etc. about the consumer.................... 131
131..................... When credit contract must be assessed as unsuitable........ 132
132..................... Giving the consumer the assessment................................. 133
Division 4--Prohibition on entering, or increasing the credit limit of, unsuitable credit contracts 135
133..................... Prohibition on entering, or increasing the credit limit of, unsuitable credit contracts 135
Part 3‑3--Licensees that provide credit assistance in relation to consumer leases 137
Division 1--Introduction 137
134..................... Guide to this Part............................................................... 137
135..................... Application of this Part..................................................... 138
Division 2--Credit guide of credit assistance providers 139
136..................... Credit guide of credit assistance providers........................ 139
Division 3--Quote for providing credit assistance etc. in relation to consumer leases 142
137..................... Quote for providing credit assistance etc........................... 142
Division 4--Obligations of credit assistance providers before providing credit assistance for consumer leases 144
138..................... Obligations of credit assistance providers before providing credit assistance for consumer leases 144
139..................... Preliminary assessment of unsuitability of the consumer lease 145
140..................... Reasonable inquiries etc. about the consumer.................... 145
141..................... When the consumer lease must be assessed as unsuitable--entering lease 146
142..................... When the consumer lease must be assessed as unsuitable--remaining in lease 147
143..................... Providing the consumer with the preliminary assessment. 148
Division 5--Fees, commissions etc. relating to consumer leases 150
144..................... Fees, commissions etc. relating to consumer leases........... 150
145..................... No profiting from fees etc. paid to third parties................ 151
Division 6--Prohibition on suggesting, or assisting with, unsuitable consumer leases 152
146..................... Prohibition on suggesting, or assisting with, unsuitable consumer leases 152
147..................... Prohibition on suggesting to consumers to remain in unsuitable consumer leases 153
Part 3‑4--Licensees that are lessors under consumer leases 156
Division 1--Introduction 156
148..................... Guide to this Part............................................................... 156
Division 2--Credit guide of lessors 157
149..................... Credit guide of lessors........................................................ 157
150..................... Credit guide of lessors who are assignees.......................... 158
Division 3--Obligations of lessors before entering consumer leases 160
151..................... Obligations of lessors before entering consumer leases..... 160
152..................... Assessment of unsuitability of the consumer lease........... 160
153..................... Reasonable inquiries etc. about the consumer.................... 160
154..................... When consumer lease must be assessed as unsuitable....... 161
155..................... Giving the consumer the assessment................................. 162
Division 4--Prohibition on entering unsuitable consumer leases 164
156..................... Prohibition on entering unsuitable consumer leases........... 164
Part 3‑5--Credit representatives 166
Division 1--Introduction 166
157..................... Guide to this Part............................................................... 166
Division 2--Credit guide of credit representatives 167
158..................... Credit guide of credit representatives................................ 167
Part 3‑6--Debt collectors 170
Division 1--Introduction 170
159..................... Guide to this Part............................................................... 170
Division 2--Credit guide of debt collectors 171
160..................... Credit guide of debt collectors........................................... 171
Part 3‑7--Exemptions and modifications relating to this Chapter 173
Division 1--Introduction 173
161..................... Guide to this Part............................................................... 173
Division 2--Exemptions and modifications relating to this Chapter 174
162..................... Provisions to which this Part applies................................ 174
163..................... Exemptions and modifications by ASIC............................ 174
164..................... Exemptions and modifications by the regulations............. 175
Chapter 4--Remedies 177
Part 4‑1--Civil penalty provisions 177
Division 1--Introduction 177
165..................... Guide to this Part............................................................... 177
Division 2--Declarations and pecuniary penalty orders for contraventions of civil penalty provisions 178
166..................... Declaration of contravention of civil penalty provision.... 178
167..................... Court may order person to pay pecuniary penalty for contravening civil penalty provision 178
Division 3--General provisions relating to civil penalty provisions 180
168..................... Contravening a civil penalty provision is not an offence... 180
169..................... Involvement in contravention treated in same way as actual contravention 180
170..................... Civil evidence and procedure rules for proceedings relating to civil penalty provisions 180
171..................... Criminal proceedings before civil proceedings................... 180
172..................... Criminal proceedings during civil proceedings................... 180
173..................... Criminal proceedings after civil proceedings...................... 181
174..................... Evidence given in proceedings for pecuniary penalty not admissible in criminal proceedings 181
175..................... Civil double jeopardy......................................................... 181
Part 4‑2--Power of the court to grant remedies 183
Division 1--Introduction 183
176..................... Guide to this Part............................................................... 183
Division 2--Power of the court to grant remedies 184
177..................... Injunctions......................................................................... 184
178..................... Compensation orders......................................................... 185
179..................... Other orders to compensate loss or damage...................... 186
180..................... Orders in relation to unlawful credit activities................... 188
181..................... Preference must be given to compensate consumers......... 189
182..................... Adverse publicity orders................................................... 190
183..................... Relief from liability for contravention of civil penalty provision 190
184..................... Multiple remedies may be granted..................................... 191
Part 4‑3--Jurisdiction and procedure of courts 192
Division 1--Introduction 192
185..................... Guide to this Part............................................................... 192
Division 2--Civil proceedings 193
Subdivision A--Application of this Division 193
186..................... Application of this Division.............................................. 193
Subdivision B--Conferral of civil jurisdiction 193
187..................... Civil jurisdiction of courts................................................. 193
188..................... Jurisdiction--decisions to prosecute and related criminal justice process decisions made by Commonwealth officers............................................................................... 194
189..................... Cross‑jurisdictional appeals............................................... 196
190..................... Courts to act in aid of each other....................................... 196
Subdivision C--Transfers between courts 197
191..................... Transfers--application of Subdivision.............................. 197
192..................... Transfers--exercise of transfer power............................... 198
193..................... Transfers--criteria for transfer.......................................... 198
194..................... Transfers--how initiated................................................... 199
195..................... Transfers--documents and procedure............................... 199
196..................... Transfers--conduct of proceedings................................... 200
197..................... Transfers--entitlement to practise as a lawyer................. 200
198..................... Transfers--limitation on appeals...................................... 200
Subdivision D--Other matters 201
199..................... Plaintiffs may choose small claims procedure................... 201
200..................... Costs only if proceedings brought vexatiously etc............ 205
201..................... Civil proceedings not to be stayed..................................... 205
202..................... Standard of proof in civil proceedings............................... 205
Division 3--Criminal proceedings 207
Subdivision A--Application of this Division 207
203..................... Application of this Division.............................................. 207
Subdivision B--Conferral of criminal jurisdiction 207
204..................... Criminal jurisdiction of courts........................................... 207
205..................... Criminal proceedings--laws to be applied........................ 210
206..................... Criminal proceedings--how taken..................................... 210
207..................... Certain persons to assist in prosecutions.......................... 211
208..................... Privilege against self‑incrimination not available to bodies corporate in criminal proceedings 212
Division 4--Proceedings generally 213
209..................... ASIC's power to intervene in proceedings........................ 213
210..................... Evidence of contravention.................................................. 213
211..................... Power of court to punish for contempt of court............... 214
Chapter 5--Administration 215
Part 5‑1--Registers relating to credit activities 215
Division 1--Introduction 215
212..................... Guide to this Part............................................................... 215
Division 2--Registers relating to credit activities 216
213..................... Credit registers................................................................... 216
214..................... Inspection and public availability of credit registers......... 217
Part 5‑2--Documents lodged with ASIC or required by this Act 218
Division 1--Introduction 218
215..................... Guide to this Part............................................................... 218
Division 2--Lodgment of documents with ASIC 219
216..................... When documents are lodged with ASIC............................ 219
217..................... Approved forms for documents to be lodged with ASIC.. 219
218..................... ASIC may refuse to receive document etc......................... 220
Division 3--ASIC's register of documents 222
219..................... Register of documents lodged with ASIC.......................... 222
220..................... ASIC may require person to give information for document registers 222
221..................... Written document setting out information from document registers is prima facie evidence of matters 223
Division 4--Other provisions relating to documents lodged with ASIC or required under this Act 224
222..................... Certified copy or extract of document lodged with ASIC is admissible in evidence 224
223..................... ASIC may destroy or dispose of certain documents......... 224
224..................... Court may order lodgment of document etc...................... 224
225..................... Offences relating to documents lodged with ASIC etc...... 225
Part 5‑3--Concealment or falsification of credit books 228
Division 1--Introduction 228
226..................... Guide to this Part............................................................... 228
Division 2--Prohibitions relating to the concealment or falsification of credit books 229
227..................... Concealing etc. of credit books.......................................... 229
228..................... Falsification of credit books............................................... 230
229..................... Precautions against falsification of credit books................ 231
Part 5‑4--Fees imposed by the National Consumer Credit Protection (Fees) Act 2009 232
Division 1--Introduction 232
230..................... Guide to this Part............................................................... 232
Division 2--Fees imposed by the National Consumer Credit Protection (Fees) Act 2009 233
231..................... Fees are payable to the Commonwealth............................ 233
232..................... Lodgment of document without payment of fee............... 233
233..................... Doing act without payment of fee..................................... 233
234..................... Effect of sections 232 and 233........................................... 233
235..................... Waiver and refund of fees.................................................. 233
236..................... Debts due to the Commonwealth...................................... 234
237..................... Payment of fee does not give right to inspect or search.... 234
Part 5‑5--Other administrative matters 235
Division 1--Introduction 235
238..................... Guide to this Part............................................................... 235
Division 2--Other administrative matters 236
239..................... ASIC has general administration of this Act...................... 236
240..................... Obstructing or hindering ASIC etc..................................... 236
241..................... Approved codes of conduct............................................... 236
242..................... ASIC may arrange for use of computer programs to make decisions 237
243..................... Qualified privilege for information given to ASIC............. 238
244..................... ASIC certificate is prima facie evidence of matters........... 238
245..................... Operator of approved external dispute resolution scheme may give information to ASIC 239
Chapter 6--Compliance and enforcement 240
Part 6‑1--Investigations 240
Division 1--Introduction 240
246..................... Guide to this Part............................................................... 240
Division 2--Investigations 241
247..................... General powers of investigation........................................ 241
248..................... Minister may direct investigations.................................... 241
249..................... Interim report on investigation.......................................... 242
250..................... Final report on investigation.............................................. 243
251..................... Distribution of report........................................................ 243
Part 6‑2--Examination of persons 245
Division 1--Introduction 245
252..................... Guide to this Part............................................................... 245
Division 2--Examination of persons 246
253..................... Notice requiring appearance for examination..................... 246
254..................... Proceedings at examination................................................ 246
255..................... Requirements made of examinee........................................ 246
256..................... Examination to take place in private.................................. 247
257..................... Examinee's lawyer may attend.......................................... 247
258..................... Record of examination........................................................ 248
259..................... Giving to other persons copies of record........................... 248
260..................... Copies given subject to conditions.................................... 249
261..................... Record to accompany report............................................. 249
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...... 255
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........................................... 259
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. 266
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........... 269
287..................... Reference to court of question of law arising at hearing.... 269
288..................... Protection of ASIC members etc....................................... 269
Part 6‑6--Offences 271
Division 1--Introduction 271
289..................... Guide to this Part............................................................... 271
Division 2--Offences 272
290..................... Contraventions of requirements made under this Chapter 272
291..................... False information............................................................... 273
292..................... Obstructing person executing a warrant under this Chapter 273
293..................... Disrupting hearings............................................................ 274
294..................... Concealing books relevant to investigation........................ 274
295..................... Self‑incrimination............................................................... 275
296..................... Legal professional privilege................................................ 276
297..................... Powers of court relating to contraventions of this Chapter 277
Part 6‑7--ASIC's powers in relation to contraventions of this Chapter 278
Division 1--Introduction 278
298..................... Guide to this Part............................................................... 278
Division 2--ASIC's powers in relation to contraventions of this Chapter 279
299..................... Application of this Part..................................................... 279
300..................... Orders by ASIC relating to credit contracts, mortgages, guarantees or consumer leases 279
301..................... Orders under this Part........................................................ 280
Part 6‑8--Evidentiary use of certain material 281
Division 1--Introduction 281
302..................... Guide to this Part............................................................... 281
Division 2--Evidentiary use of certain material 282
303..................... Statements made at an examination: proceedings against examinee 282
304..................... Statements made at an examination: other proceedings..... 282
305..................... Weight of evidence admitted under section 304................. 283
306..................... Objection to admission of statements made at examination 284
307..................... Copies of, or extracts from, certain books......................... 285
308..................... Report under Part 6‑1........................................................ 286
309..................... Exceptions to admissibility of report................................ 286
310..................... Material otherwise admissible........................................... 287
Part 6‑9--Miscellaneous provisions relating to compliance and enforcement 288
Division 1--Introduction 288
311..................... Guide to this Part............................................................... 288
Division 2--Miscellaneous provisions relating to compliance and enforcement 289
312..................... Requirement made of a body corporate............................. 289
313..................... Evidence of authority......................................................... 289
314..................... Giving documents to natural persons................................ 289
315..................... Place and time for production of books............................. 290
316..................... Application of Crimes Act and Evidence Act................... 290
317..................... Allowances and expenses................................................... 290
318..................... Expenses of investigation under Part 6‑1........................... 291
319..................... Recovery of expenses of investigation............................... 291
320..................... Compliance with this Chapter........................................... 292
321..................... Effect of this Chapter........................................................ 292
322..................... Enforcement of undertakings............................................. 292
Chapter 7--Miscellaneous 294
Part 7‑1--Miscellaneous 294
Division 1--Introduction 294
323..................... Guide to this Part............................................................... 294
Division 2--Liability of persons for conduct of their agents etc. 295
324..................... Liability for bodies corporate for conduct of their agents, employees etc. 295
325..................... Liability of persons (other than bodies corporate) for the conduct of their agents, employees etc. 296
326..................... Regulations for the purposes of this Division................... 297
Division 3--Review of ASIC's decisions 298
327..................... Review by Administrative Appeals Tribunal of decisions by ASIC under this Act 298
328..................... Notice of reviewable decision and review rights................ 299
Division 4--Regulations 300
329..................... Regulations......................................................................... 300
330..................... Regulations--where proceedings may be brought............. 300
331..................... Regulations--infringement notices.................................... 300
Division 5--Other miscellaneous provisions 301
332..................... Civil penalty provisions contravened or offences committed partly in and partly out of this jurisdiction........................................................................................... 301
333..................... Contravention of Act does not generally affect validity of transactions etc. 301
334..................... Contracting out etc............................................................. 301
335..................... Indemnities......................................................................... 302
336..................... Acquisition of property..................................................... 303
337..................... Minister may delegate prescribed functions and powers under this Act 303
Schedule 1--National Credit Code 304
Part 1--Preliminary 304
1......................... Short title........................................................................... 304
2......................... Interpretation generally...................................................... 304
3......................... Meaning of credit and amount of credit............................. 304
4......................... Meaning of credit contract................................................. 305
5......................... Provision of credit to which this Code applies.................. 305
6......................... Provision of credit to which this Code does not apply..... 306
7......................... Mortgages to which this Code applies.............................. 310
8......................... Guarantees to which this Code applies............................. 310
9......................... Goods leases with option to purchase to be regarded as sale by instalments 311
10....................... Deciding application of Code to particular contracts for the sale of land by instalments 312
11....................... Deciding application of Code to particular contracts for the sale of goods by instalments 313
12....................... Deciding application of Code to particular contracts for the sale of goods by instalments under related contracts............................................................................. 314
13....................... Presumptions relating to application of Code................... 315
Part 2--Credit contracts 317
Division 1--Negotiating and making credit contracts 317
14....................... Credit contract to be in form of written contract document 317
15....................... Other forms of contract..................................................... 317
16....................... Precontractual disclosure................................................... 318
17....................... Matters that must be in contract document....................... 318
18....................... Form and expression of contract document....................... 324
19....................... Alteration of contract document........................................ 324
20....................... Copy of contract for debtor............................................... 324
21....................... When debtor may terminate contract................................. 324
22....................... Offence for noncompliance................................................ 325
Division 2--Debtor's monetary obligations 326
23....................... Prohibited monetary obligations........................................ 326
24....................... Offences related to prohibited monetary obligations......... 326
25....................... Loan to be in money or equivalent..................................... 327
26....................... Early payments and crediting of payments....................... 327
26A.................... Regulations about residential investment property........... 328
Division 3--Interest charges 329
27....................... Definitions relating to interest........................................... 329
28....................... Limit on interest charges.................................................... 329
29....................... Early debit or payment of interest charges prohibited...... 330
30....................... Default interest.................................................................. 330
30A.................... Regulations about residential investment property........... 331
Division 4--Fees and charges 332
31....................... Prohibited credit fees or charges........................................ 332
32....................... Fees or charges passed on to other parties........................ 332
Division 5--Credit provider's obligation to account 333
33....................... Statements of account........................................................ 333
34....................... Information to be contained in statements of account....... 334
35....................... Opening balance must not exceed closing balance of previous statement 336
36....................... Statement of amount owing and other matters.................. 337
37....................... Court may order statement to be provided........................ 338
38....................... Disputed accounts............................................................. 338
39....................... Dating and adjustment of debits and credits in accounts... 339
Division 6--Certain transactions not to be treated as contracts 341
40....................... Deferrals, waivers and changes under contracts................. 341
Part 3--Related mortgages and guarantees 342
Division 1--Mortgages 342
41....................... Application of Division..................................................... 342
42....................... Form of mortgage............................................................... 342
43....................... Copy of mortgage for mortgagor........................................ 342
44....................... Mortgages over all property void...................................... 343
45....................... Restriction on mortgage of future property....................... 343
46....................... Mortgages and continuing credit contracts........................ 343
47....................... All accounts mortgages...................................................... 344
48....................... Third party mortgages prohibited...................................... 344
49....................... Maximum amount which may be secured.......................... 345
50....................... Prohibited securities........................................................... 345
51....................... Assignment or disposal of mortgaged property by mortgagor 346
52....................... Conditions on consent to assignment or disposal of property subject to mortgage 347
53....................... Offence for noncompliance................................................ 348
Division 2--Guarantees 349
54....................... Application of Division..................................................... 349
55....................... Form of guarantee.............................................................. 349
56....................... Disclosure.......................................................................... 349
57....................... Copies of documents for guarantor.................................... 349
58....................... Guarantor may withdraw before credit is provided........... 350
59....................... Extension of guarantee....................................................... 350
60....................... Limitation of guarantor's liability...................................... 351
61....................... Increase in guarantor's liabilities........................................ 352
62....................... Offence for noncompliance................................................ 352
Part 4--Changes to obligations under credit contracts, mortgages and guarantees 354
Division 1--Unilateral changes by credit provider 354
63....................... Application of Division..................................................... 354
64....................... Interest rate changes........................................................... 354
65....................... Repayment changes........................................................... 356
66....................... Credit fees and charges changes......................................... 357
67....................... Changes to credit limits etc. in continuing credit contracts 358
68....................... Other unilateral changes by credit provider....................... 358
69....................... Particulars of matters as changed only required to be given under this Division in certain cases 359
70....................... Prohibited increases in liabilities........................................ 359
Division 2--Changes by agreement of parties 361
71....................... Changes by agreement........................................................ 361
Division 3--Changes on grounds of hardship and unjust transactions 362
72....................... Changes on grounds of hardship........................................ 362
73....................... Notice of change................................................................. 363
74....................... Changes by court............................................................... 364
75....................... Credit provider may apply for variation of change........... 364
76....................... Court may reopen unjust transactions............................... 364
77....................... Orders on reopening of transactions.................................. 367
78....................... Court may review unconscionable interest and other charges 368
79....................... Applications by ASIC....................................................... 369
80....................... Time limit........................................................................... 370
81....................... Joinder of parties............................................................... 370
Part 5--Ending and enforcing credit contracts, mortgages and guarantees 371
Division 1--Ending of credit contract by debtor 371
82....................... Debtor's or guarantor's right to pay out contract............. 371
83....................... Statement of pay out figure............................................... 371
84....................... Court may determine pay out figure if credit provider does not provide a pay out figure 372
85....................... Surrender of mortgaged goods and goods subject to sale by instalments 372
86....................... Compensation to debtor or mortgagor............................... 375
87....................... One‑off notice to be given the first time a direct debit default occurs 375
Division 2--Enforcement of credit contracts, mortgages and guarantees 377
88....................... Requirements to be met before credit provider can enforce credit contract or mortgage against defaulting debtor or mortgagor....................................................................... 377
89....................... Defaults may be remedied.................................................. 380
90....................... Requirements to be met before credit provider can enforce guarantee against guarantor 380
91....................... Requirements to be met before credit provider can repossess mortgaged goods 381
92....................... Acceleration clauses........................................................... 381
93....................... Requirements to be met before credit provider can enforce an acceleration clause 382
Division 3--Postponement of enforcement proceedings 384
94....................... Postponement of exercise of rights.................................... 384
95....................... Effect of negotiated postponement.................................... 384
96....................... Postponement by court..................................................... 385
97....................... Credit provider may apply for variation of postponement order 386
Division 4--Enforcement procedures for goods mortgaged 387
98....................... Information as to location of mortgaged goods.................. 387
99....................... Entry to residential property to take possession of goods 387
100..................... Court may order entry....................................................... 388
101..................... Order for possession.......................................................... 388
102..................... Procedures to be followed by credit provider after taking possession of goods 388
103..................... Mortgagor may nominate purchaser of goods taken by credit provider 390
104..................... Sale of goods by credit provider........................................ 390
105..................... Matters for which account can be debited after mortgagee sale of goods 391
106..................... Compensation to mortgagor............................................... 391
Division 5--Enforcement expenses 393
107..................... Recovery of enforcement expenses.................................... 393
Division 6--Mortgagor's remedies 394
108..................... Mortgagor may apply to regain possession of mortgaged goods 394
109..................... Order for possession for mortgagor................................... 394
110..................... Ancillary or consequential orders...................................... 395
Part 6--Penalties for defaults of credit providers 396
Division 1--Penalties for breach of key disclosure and other requirements 396
111..................... Key requirements............................................................... 396
112..................... Application for order relating to key requirements........... 397
113..................... Penalty may be imposed for contravention of key requirement 397
114..................... Penalty if application made by debtor or guarantor.......... 399
115..................... Payment of penalty to debtor or guarantor....................... 399
116..................... Penalty if application made by a credit provider or ASIC 400
117..................... Payment of penalty........................................................... 400
118..................... Compensation for debtor or guarantor............................... 400
119..................... General provisions relating to applications by credit providers or ASIC 401
120..................... ASIC may represent interests of debtors.......................... 401
121..................... Directions pending court's decision................................... 401
122..................... Offences............................................................................. 402
123..................... Time limit for application for orders under this Division.. 402
Division 2--Other penalties 403
124..................... Civil effect of other contraventions................................... 403
Part 7--Related sale contracts 404
Division 1--Interpretation and application 404
125..................... Meaning of sale contract.................................................... 404
126..................... Sale contracts to which this Part applies........................... 404
127..................... Linked credit providers and tied credit contracts............... 404
Division 2--Liability of credit providers for suppliers' misrepresentations 406
128..................... Credit provider liable with respect to supplier's misrepresentations etc. about tied credit contract 406
Division 3--Liability of credit providers in relation to goods 407
129..................... Right to damages under sale contract against both supplier and linked credit provider (cf. section 73 of the Trade Practices Act 1974).................................................. 407
130..................... Limits on debtor's right of action against linked credit provider (cf. section 73 of the Trade Practices Act 1974)........................................................................................... 408
131..................... Liability of supplier to linked credit provider (cf. section 73 of the Trade Practices Act 1974) 411
132..................... Interest may be awarded (cf. section 73 of the Trade Practices Act 1974) 411
133..................... Subrogation of credit provider (cf. section 73 of the Trade Practices Act 1974) 411
Division 4--Termination of related transactions 413
134..................... Termination of sale contract which is conditional on obtaining credit 413
135..................... Termination of (or recredit under) tied credit contract if sale contract terminated 413
136..................... Termination of linked maintenance services contract if credit contract terminated 415
137..................... Termination of contract under this Part to be in writing... 416
138..................... Powers of court with respect to termination of contract under this Part 416
139..................... Part 5 not to apply to termination of contract under this Part 416
Division 5--Other provisions 417
140..................... Requirement as to source of credit for goods or services... 417
141..................... Prohibition on payment for goods or services by postdated bills of exchange or notes which exceed cash price of goods or services............................................................ 417
Part 8--Related insurance contracts 418
142..................... Interpretation and application........................................... 418
143..................... Requirement to take out insurance or to insure with particular insurer or on particular terms 418
144..................... Financing of insurance premiums over mortgaged property 419
145..................... Commission for consumer credit insurance....................... 420
146..................... Supply of copy of credit‑related insurance contract by insurer 421
147..................... Rejection of debtor's proposal for insurance..................... 421
148..................... Termination of consumer credit insurance contract if credit contract terminated 422
149..................... Termination of insurance contract over mortgaged property if credit contract terminated 422
Part 9--Advertising and related conduct 424
150..................... Advertising......................................................................... 424
151..................... Persons liable for advertisements....................................... 425
152..................... Defence.............................................................................. 425
153..................... Interest rates which may be disclosed............................... 425
154..................... False or misleading representations................................... 426
155..................... Harassment........................................................................ 426
156..................... Canvassing of credit at home............................................. 426
Part 10--Comparison rates 428
Division 1--Preliminary 428
157..................... Object of Part..................................................................... 428
158..................... Part not to apply to continuing credit contracts................ 428
159..................... Definitions......................................................................... 428
Division 2--Comparison rate in credit advertising 430
160..................... Comparison rate mandatory in advertisements containing annual percentage rate 430
161..................... The relevant comparison rate............................................. 430
162..................... Information about comparison rate.................................... 430
163..................... Warning about comparison rate......................................... 431
164..................... Other requirements for comparison rate............................ 431
Division 3--Comparison rate in other documents 433
165..................... Comparison rates in documents other than credit advertising 433
Division 4--Miscellaneous 434
166..................... Calculation of comparison rates......................................... 434
167..................... Compliance grace period following changes in interest or fees 434
168..................... Regulations--exemptions and other matters..................... 434
Part 11--Consumer leases 435
Division 1--Interpretation and application 435
169..................... Meaning of consumer lease............................................... 435
170..................... Consumer leases to which this Part applies...................... 435
171..................... Consumer leases to which this Part does not apply.......... 436
172..................... Presumptions relating to application of this Part.............. 437
Division 2--Form of and information to be included in consumer leases 439
173..................... Form of consumer lease..................................................... 439
174..................... Disclosures in consumer leases.......................................... 439
175..................... Copy of lease etc. for lessee.............................................. 440
176..................... Further goods and deferrals or waivers under consumer leases.. 440
Division 3--Other provisions applicable to consumer leases 442
177..................... Application of certain Code provisions to consumer leases 442
178..................... Notice of repossession....................................................... 442
179..................... Termination of lease........................................................... 443
Part 12--Miscellaneous 444
Division 1--Tolerances and assumptions 444
180..................... Tolerances and assumptions relating to information......... 444
181..................... Tolerances relating to contracts and other documents....... 445
182..................... Regulations......................................................................... 446
Division 2--Documentary provisions 447
183..................... Form of notices.................................................................. 447
184..................... Legibility and language....................................................... 447
185..................... Copies of contracts and other documents.......................... 448
186..................... Signing of documents......................................................... 448
187..................... Electronic transactions and documents.............................. 449
Division 3--General provisions 450
188..................... Assignment by credit provider.......................................... 450
189..................... Assignment by debtor, mortgagor or guarantor................. 450
190..................... Appropriation of payments.............................................. 450
191..................... Contracting out.................................................................. 451
192..................... Indemnities......................................................................... 451
193..................... Effect of noncompliance.................................................... 452
194..................... Giving notice or other document........................................ 452
195..................... Manner of giving notice or other document....................... 454
196..................... Date of notice or other document...................................... 455
197..................... Extensions of time.............................................................. 455
198..................... Orders of court................................................................... 455
199..................... Conduct of agents and related matters............................... 456
Division 4--Provisions relating to offences 457
200..................... Offences by officers, agents or employees........................ 457
201..................... Offences by corporations.................................................. 457
202..................... Limitations......................................................................... 457
203..................... Application of section 4K of the Crimes Act 1914........... 457
Division 5--Exemptions from this Code 458
203A.................. Exemptions by ASIC......................................................... 458
203B.................. Exemptions by the regulations........................................... 458
Part 13--Principal definitions 459
204..................... Principal definitions........................................................... 459
Part 14--Miscellaneous provisions relating to interpretation 469
Division 1--Preliminary 469
205..................... Displacement of Part by contrary intention...................... 469
Division 2--General 470
206..................... Material that is, and is not, part of this Code.................... 470
207..................... References to particular Acts and to enactments............... 470
208..................... Compliance with forms...................................................... 470
Division 3--Terms and references 472
209..................... Provisions relating to defined terms and gender and number 472
210..................... Meaning of may and must etc............................................ 472
211..................... Effect of express references to bodies corporate and individuals 472
212..................... Reference to certain provisions of Code............................ 473
213..................... Reference to provisions of this Code or an Act is inclusive 473
Division 4--Functions and powers 475
214..................... Power to make instrument or decision includes power to amend or repeal 475
215..................... Matters for which statutory instruments may make provision 475
216..................... Presumption of validity and power to make..................... 476
217..................... Exercise of powers between enactment and commencement 477
Division 5--Distance, time and age 480
218..................... Matters relating to distance, time and age.......................... 480
National Consumer Credit Protection Act 2009
No. 134, 2009
An Act relating to credit, and for related purposes
[Assented to 15 December 2009]
The Parliament of Australia enacts: