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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Consumer Credit (New South Wales)
Amendment (Maximum Annual
Percentage Rate) Bill 2005
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendment of Consumer Credit (New South Wales) Act
1995 No 7 2
4 Amendment of Consumer Credit (New South Wales)
Special Provisions Regulation 2002 2
Schedule 1 Amendment of Consumer Credit (New South Wales) Act
1995 3
Schedule 2 Amendment of Consumer Credit (New South Wales)
Special Provisions Regulation 2002 4
I certify that this PUBLIC BILL, which originated in the LEGISLATIVE ASSEMBLY,
has finally passed the LEGISLATIVE COUNCIL and the LEGISLATIVE ASSEMBLY of
NEW SOUTH WALES.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 2005
New South Wales
Consumer Credit (New South Wales)
Amendment (Maximum Annual
Percentage Rate) Bill 2005
Act No , 2005
An Act to amend the Consumer Credit (New South Wales) Act 1995 and the
Consumer Credit (New South Wales) Special Provisions Regulation 2002 with
respect to the inclusion of fees and charges in the calculation of maximum annual
percentage rates for credit contracts; and for other purposes.
I have examined this Bill, and find it to correspond in all respects with the Bill
as finally passed by both Houses.
Chairman of Committees of the Legislative Assembly.
Consumer Credit (New South Wales) Amendment (Maximum Annual
Clause 1 Percentage Rate) Bill 2005
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Consumer Credit (New South Wales) Amendment
(Maximum Annual Percentage Rate) Act 2005.
2 Commencement
This Act commences on a day or days to be appointed by proclamation.
3 Amendment of Consumer Credit (New South Wales) Act 1995 No 7
The Consumer Credit (New South Wales) Act 1995 is amended as set
out in Schedule 1.
4 Amendment of Consumer Credit (New South Wales) Special Provisions
Regulation 2002
The Consumer Credit (New South Wales) Special Provisions
Regulation 2002 is amended as set out in Schedule 2.
Page 2
Consumer Credit (New South Wales) Amendment (Maximum Annual
Percentage Rate) Bill 2005
Amendment of Consumer Credit (New South Wales) Act 1995 Schedule 1
Schedule 1 Amendment of Consumer Credit (New
South Wales) Act 1995
(Section 3)
[1] Section 10B Disclosure of cost of credit as annual percentage rate
Omit section 10B (1).
[2] Section 11
Omit the section. Insert instead:
11 Maximum annual percentage rate
(1) The regulations may prescribe a maximum annual percentage
rate for a credit contract or class of credit contracts to which the
Consumer Credit (New South Wales) Code applies.
(2) The regulations may require interest charges and all credit fees
and charges under a credit contract or class of credit contracts to
be included for the purpose of calculating the maximum annual
percentage rate under the credit contract for the purposes of
subsection (1).
(3) Division 2 of Part 2 of the Consumer Credit (New South Wales)
Code applies in relation to such a maximum annual percentage
rate as if that rate had been prescribed by that Code.
Note. The effect of subsection (3) is that a contract is void to the extent
it imposes a monetary liability prohibited under subsection (1) and that
any amount paid under the contract may be recovered. In addition the
credit provider is guilty of an offence for entering into such a contract.
(4) Nothing in this section affects the powers of the Court under
Division 3 of Part 4 of the Consumer Credit (New South Wales)
Code in relation to a contract that is not, by reason of this section,
void.
Note. Division 3 of Part 4 of the Code allows (among other things) the
Court to re-open unjust transactions.
[3] Section 14 Special savings and transitional regulations for New South
Wales
Insert ", the Consumer Credit (New South Wales) Amendment (Maximum
Annual Percentage Rate) Act 2005" after "the Consumer Credit (New South
Wales) Amendment (Pay Day Lenders) Act 2001" in section 14 (1).
Page 3
Consumer Credit (New South Wales) Amendment (Maximum Annual
Percentage Rate) Bill 2005
Schedule 2 Amendment of Consumer Credit (New South Wales) Special Provisions
Regulation 2002
Schedule 2 Amendment of Consumer Credit (New
South Wales) Special Provisions
Regulation 2002
(Section 4)
[1] Clause 7 Maximum annual percentage rate
Insert at the end of the clause (before the note):
(2) For the purposes of section 11 (2) of the Act, interest charges and
all credit fees and charges under a credit contract are to be
included for the purpose of calculating the maximum annual
percentage rate under any credit contract to which the Consumer
Credit (New South Wales) Code applies.
(3) The maximum annual percentage rate is to be calculated in
accordance with clause 8.
(4) Despite subclause (2), any credit fees or charges arising from the
establishment or maintenance of a temporary credit facility are
not required to be included for the purposes of calculating the
maximum annual percentage rate if:
(a) the credit provider is an authorised deposit-taking
institution, and
(b) the debtor has or had an existing credit contract or debit
account with the authorised deposit-taking institution at
the time the temporary credit facility is or was established,
and
(c) the temporary credit facility is related to the existing credit
contract or debit account.
(5) In this clause, a temporary credit facility includes, but is not
limited to, an overdraft facility and a short term extension of the
total amount of credit available under an existing credit contract.
[2] Clause 8 Maximum annual percentage rate for certain credit contracts
Omit clause 8 (1) and (8).
[3] Clause 8 (2)
Omit the subclause. Insert instead:
(2) For the purposes of calculating the maximum annual percentage
rate under a credit contract, the rate must be calculated as a
nominal rate per annum, together with the compounding
frequency, in accordance with this clause.
Page 4
Consumer Credit (New South Wales) Amendment (Maximum Annual
Percentage Rate) Bill 2005
Amendment of Consumer Credit (New South Wales) Special Provisions Schedule 2
Regulation 2002
[4] Clause 8 (5)
Insert "precise" before "calculation".
[5] Clause 8 (6A)
Insert after clause 8 (6):
(6A) If the credit contract is a continuing credit contract (within the
meaning of the Consumer Credit (New South Wales) Code), the
following assumptions also apply to the calculation of the
maximum annual percentage rate:
(a) that the debtor has drawn down the maximum amount of
credit that the credit provider has agreed to provide under
the contract,
(b) that the debtor will pay the minimum repayments specified
in the contract,
(c) if credit is provided in respect of payment by the credit
provider to a third person in relation to goods or services
or cash supplied by that third person to the debtor from
time to time--that the debtor will not be supplied with any
further goods or services or cash,
(d) if credit is provided in respect of cash supplied by the
credit provider to the debtor from time to time--that the
debtor will not be supplied with any further cash.
[6] Clause 9 Short term credit
Omit the clause.
[7] Clause 10 Disclosure of cost of credit as annual percentage rate
Omit the clause.
[8] Part 4, heading
Omit the heading. Insert instead:
Part 4 Transitional provisions
Page 5
Consumer Credit (New South Wales) Amendment (Maximum Annual
Percentage Rate) Bill 2005
Schedule 2 Amendment of Consumer Credit (New South Wales) Special Provisions
Regulation 2002
[9] Clause 12
Insert after clause 11:
12 Consumer Credit (New South Wales) Amendment (Maximum
Annual Percentage Rate) Act 2005
(1) An amendment made by the Consumer Credit (New South Wales)
Amendment (Maximum Annual Percentage Rate) Act 2005
applies to a credit contract whether the credit contract was
established before or after the commencement of the amendment.
(2) This clause does not affect anything duly done in connection with
such a contract before the commencement of any such
amendment.
(3) Despite subclause (1), the Consumer Credit (New South Wales)
Special Provisions Regulation 2002 (as in force immediately
before the commencement of Schedule 2 [1] to the Consumer
Credit (New South Wales) Amendment (Maximum Annual
Percentage Rate) Act 2005) continues to apply in respect of a
credit contract if the credit contract was established before that
commencement.
(4) However, subclause (3) ceases to have effect in respect of a credit
contract and the method prescribed for calculating the maximum
annual percentage rate in clauses 7 and 8 applies if, after that
commencement:
(a) the interest charges or credit fees or charges under the
contract are increased, or a new fee or charge is imposed
(whether or not such an increase is made, or a new fee or
charge is imposed, pursuant to the provisions of the
contract), or
(b) the period of the credit contract is extended (whether or not
pursuant to the provisions of the contract), other than under
section 66 of the Consumer Credit (New South Wales)
Code.
Page 6
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