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TASMANIA
__________
CONSUMER CREDIT (TASMANIA) AMENDMENT
BILL 2007
__________
CONTENTS
1. Short title
2. Commencement
3. Principal Act
4. Section 5 amended (Application in Tasmania of the Consumer
Credit Code)
5. Schedule 1A inserted
Schedule 1A Provisions having effect by virtue of
section 5(8)
[Bill 41]-IX
2
CONSUMER CREDIT (TASMANIA) AMENDMENT
BILL 2007
(Brought in by the Minister for Justice and Workplace
Relations, the Honourable Steven Kons)
A BILL FOR
An Act to amend the Consumer Credit (Tasmania) Act 1996
Be it enacted by His Excellency the Governor of Tasmania, by
and with the advice and consent of the Legislative Council and
House of Assembly, in Parliament assembled, as follows:
1. Short title
This Act may be cited as the Consumer Credit
(Tasmania) Amendment Act 2007.
2. Commencement
This Act commences on the day on which this
Act receives the Royal Assent.
3. Principal Act
In this Act, the Consumer Credit (Tasmania) Act
1996* is referred to as the Principal Act.
*No. 25 of 1996
[Bill 41] 3
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4. Section 5 amended (Application in Tasmania of the
Consumer Credit Code)
Section 5 of the Principal Act is amended by
inserting after subsection (7) the following
subsections:
(8) Notwithstanding subsection (1), the
Consumer Credit (Tasmania) Code
applies as if that Code were amended as
specified in Schedule 1A.
(9) Subsection (8) and Schedule 1A expire
on a date to be fixed by proclamation.
5. Schedule 1A inserted
After Schedule 1 to the Principal Act, the
following Schedule is inserted:
SCHEDULE 1A PROVISIONS HAVING EFFECT BY
VIRTUE OF SECTION 5(8)
Section 5(8)
The Consumer Credit (Tasmania) Code is amended by inserting
after Part 9 the following Part:
Part 9A Comparison Rates
Division 1 Preliminary
146A Object of Part
(1) The object of this Part is to assist consumers to identify the
true cost of credit offered by credit providers.
(2) In order to achieve that object, this Part
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(a) makes it mandatory for credit providers to include
the comparison rate in advertisements for consumer
credit (other than under continuing credit contracts)
if an interest rate is advertised; and
(b) requires credit providers, linked suppliers and
finance brokers to supply consumers with
schedules of comparison rates for any such
consumer credit.
The comparison rate will reflect the total cost of credit
arising from interest charges and other prescribed credit
fees and charges.
146B Part not to apply to continuing credit contracts
(1) This Part does not apply to advertising or other matters
about the provision of credit under continuing credit
contracts.
(2) Accordingly, a reference in this Part to the provision of
credit (or to a credit contract or related matters) does not
include a reference to the provision of credit under a
continuing credit contract (or to a continuing credit
contract or matters related to such a contract).
146C Definitions
In this Part
comparison rate schedule see section 146J.
consumer credit product means any form of facility for
the provision of credit (other than under a continuing
credit contract) provided to debtors by a credit
provider.
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credit advertisement means an advertisement in any form
or medium that states or implies that credit is
available, but (for the avoidance of doubt) does not
include
(a) notices or other documents required or
authorised to be given under this Code; or
(b) a publication that only lists reference rates.
finance broker means a person who carries on the
business of negotiating, or acting as intermediary to
obtain, credit for persons other than the employer or
principal of the person so negotiating or acting.
name, of consumer credit product, means the usual name
or description by which the credit provider describes
or advertises the product.
146D Expiry of Part
This Part expires on the fourth anniversary of its
commencement, or on an earlier day fixed by a regulation.
Note: Section 14(3) provides that a credit provider may, before entering into a
credit contract, inform the debtor of the comparison rate. Section 140(4)
continues (after the expiry of this Part) the provision that an advertisement
about the availability of consumer credit may contain the comparison rate.
Division 2 Comparison rate in credit advertising
146E Comparison rate mandatory in advertisements
containing annual percentage rate
(1) A credit advertisement must contain the relevant
comparison rate in accordance with this Part if it contains
an annual percentage rate.
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(2) A credit advertisement may contain the relevant comparison
rate in accordance with this Part even if it does not contain
an annual percentage rate.
Note: Section 140(1) makes it an offence (maximum penalty 100 penalty units)
if a person publishes a credit advertisement that does not comply with this
Division.
146F The relevant comparison rate
(1) The relevant comparison rate for the purposes of section
146E is the comparison rate calculated for whichever of
the designated amounts and terms most closely represents
the typical amount of credit and term initially provided by
the credit provider for the consumer credit product being
advertised.
(2) The designated amounts and terms are the amounts and
terms prescribed by a regulation for the purposes of this
section.
(3) The credit advertisement may contain more than one
relevant comparison rate.
146G Information about comparison rate
(1) The credit advertisement must clearly state the name of the
consumer credit product, the amount of credit and the term
to which each comparison rate applies.
(2) If the comparison rate is calculated for an amount of credit
prescribed by a regulation for the purposes of this
subsection, the credit advertisement must clearly state
(a) that the comparison rate is for a secured loan if it
has been calculated on the basis that a mortgage or
guarantee is taken by the credit provider; or
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(b) that the comparison rate is for an unsecured loan if
it has not been so calculated.
The word "secured" or "unsecured" in connection with the
amount of credit for which the comparison rate is
calculated is a sufficient description for the purposes of
this subsection.
(3) The credit advertisement must clearly state that a
comparison rate schedule will be available at the premises
of the credit provider, finance broker or supplier to which
the advertisement relates.
146H Warning about comparison rate
(1) A comparison rate in a credit advertisement must be
accompanied by a warning about the accuracy of the
comparison rate that is prescribed by a regulation.
(2) If a comparison rate schedule comprises 2 or more
documents, a separate warning must be given on each
document.
(3) The warning may be given in conjunction with the basis on
which the comparison rate is calculated, that is, that the
comparison rate is accurate only for the specified amount
of credit and specified term.
146I Other requirements for comparison rate
(1) A comparison rate in any credit advertisement must be
identified as a comparison rate.
(2) A comparison rate in any credit advertisement must not be
less prominent than
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(a) any annual percentage rate stated in the
advertisement; and
(b) the amount of any repayment stated in the
advertisement.
(3) The following applies to credit advertisements on
television, the Internet or other electronic display
medium
(a) if the annual percentage rate is in spoken form and
not displayed on the screen in text, the comparison
rate must also be in spoken form;
(b) if the annual percentage rate is displayed on the
screen in text, the comparison rate must also be
displayed on the screen in text and may be in
spoken form;
(c) if the comparison rate is in spoken form, the
warning and other information may be either in
spoken form or displayed on the screen in text;
(d) if the comparison rate is displayed on the screen in
text, the warning and other information must also
be displayed on the screen in text.
Division 3 Comparison rate schedules
146J The comparison rate schedule
The comparison rate schedule is a schedule that lists, in
accordance with this Part, comparison rates for consumer
credit products of a credit provider.
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146K When comparison rate schedule to be provided to
consumers
(1) Premises of credit provider. A credit provider is required
to display and make available for collection by members of
the public copies of the relevant comparison rate schedule
at any premises of the credit provider
(a) at which the credit provider displays or makes
available for collection by members of the public
copies of documents advertising the consumer
credit products of the credit provider; or
(b) at which members of the public may lodge
applications for credit in person.
(2) Premises of finance broker. A finance broker is required
to display and make available for collection by members of
the public copies of the relevant comparison rate schedule
or schedules at any premises of the finance broker
(a) at which the finance broker displays or makes
available for collection by members of the public
copies of documents advertising the consumer
credit products of credit providers; or
(b) at which members of the public may lodge
applications for credit in person.
(3) Premises of linked suppliers. A supplier is required to
display and make available for collection by members of
the public copies of the relevant comparison rate schedule
or schedules at any premises of the supplier
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(a) at which the supplier displays or makes available for
collection by members of the public copies of
documents advertising the consumer credit
products of credit providers who are linked credit
providers of the supplier; or
(b) at which members of the public may lodge
applications for credit in person.
Note: Section 117 defines linked credit provider for the purposes of the Code.
(4) Internet sites etc. A credit provider, finance broker or
supplier who makes material advertising consumer credit
products available on an Internet site, or on any other
public electronic system, under the control of the credit
provider, finance broker or supplier is to ensure that
electronic access to the relevant comparison rate schedule
is also available to members of the public who access that
material.
(5) Provision of credit applications. A credit provider,
finance broker or supplier is to ensure that a copy of the
relevant comparison rate schedule accompanies any
application for credit that is sent or given by the credit
provider, finance broker or supplier to any prospective
debtor.
146L Relevant comparison rate schedule
(1) The relevant comparison rate schedule or schedules for the
purposes of section 146K are as follows
(a) in the case of the premises of a credit provider a
schedule or schedules for all of the consumer credit
products of the credit provider;
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(b) in the case of the premises of a finance broker a
schedule or schedules for the consumer credit
products of each credit provider with which the
broker deals (except as provided by subsection
(2));
(c) in the case of the premises of a supplier a schedule
or schedules for the consumer credit products of
each linked credit provider;
(d) in the case of an Internet site or any other public
electronic system a schedule or schedules for the
consumer credit product or products of each credit
provider concerned;
(e) in the case of an application for credit a schedule
or schedules for the consumer credit product or
products to which the application relates.
(2) If a finance broker deals with the consumer credit products
of more than 6 credit providers, comparison rate schedules
are only required to be displayed under section 146K(2) for
at least 6 credit providers (one for each of the credit
providers with whose products the broker mainly deals).
146M Comparison rates to be listed in schedule
(1) The comparison rates required to be listed in a relevant
comparison rate schedule for the purposes of section
146K1 are the comparison rates calculated for each of the
designated amounts of credit and terms for the consumer
credit product or products concerned.
(2) The designated amounts and terms are the amounts and
terms prescribed by a regulation for the purposes of this
section.
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(3) The comparison rate schedule for any consumer credit
product need not list any of the above amounts that are not
generally available in connection with that consumer credit
product.
If an amount is generally available, it is to be listed in the
comparison rate schedule whether or not it is generally
available for the term prescribed under subsection (2) for
that amount.
1
Section 146K (When comparison rate schedule to be
provided to consumers)
(4) In the case of a comparison rate that is calculated for an
amount of credit prescribed by a regulation for the
purposes of this subsection, the comparison rate schedule
must clearly state
(a) that the comparison rate is for a secured loan if it
has been calculated on the basis that a mortgage or
guarantee is taken by the credit provider; or
(b) that the comparison rate is for an unsecured loan if
it has not been so calculated.
The word "secured" or "unsecured" in connection with the
amount of credit for which the comparison rate is
calculated is a sufficient description for the purposes of
this subsection.
(5) The comparison rate schedule must clearly state
(a) the name of the consumer credit product, the
amount of credit and the term applicable to each
comparison rate listed in the schedule; and
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(b) the annual percentage rate for each such amount of
credit and term.
146N Form of comparison rate schedule
(1) A comparison rate schedule is to take the form of
(a) a printed document (comprising one or more pages);
or
(b) text displayed on a screen, where access to the
schedule is to be made available on an Internet site,
or on any other public electronic system.
(2) Comparison rates for different consumer credit products of
a credit provider may be shown on a single or several
comparison rate schedules.
146O Warning about comparison rates
(1) The comparison rates in a comparison rate schedule must be
accompanied by a warning about the accuracy of the
comparison rate that is prescribed by a regulation.
(2) If a comparison rate schedule comprises 2 or more
documents, a separate warning must be given on each
document.
(3) If a comparison rate schedule is displayed in text on a
screen, a regulation may require more than one warning to
be given.
146P Other requirements for comparison rate schedules
(1) A comparison rate schedule must comply with the
following requirements
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(a) the schedule must have "comparison rate schedule"
as its title;
(b) the schedule must clearly state the name of the
credit provider providing the consumer credit
product to which it relates (if the credit provider is
ascertainable);
(c) the schedule must clearly state the date of its issue.
(2) A comparison rate schedule may contain
(a) the name of the finance broker or supplier who
displays the schedule or makes it available; and
(b) information for the purposes of contacting the credit
provider, finance broker or supplier named in the
schedule.
(3) A comparison rate schedule is not to contain any
information other than that required or permitted by or
under this Code.
146Q Offence for non-compliance with this Division
A credit provider, finance broker or supplier that
contravenes a requirement of this Division is guilty of an
offence.
Maximum penalty 100 penalty units.
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Division 4 Miscellaneous
146R Calculation of comparison rates
(1) A regulation may make provision about the way in which
comparison rates are to be calculated for the purposes of
this Part.
(2) For the purposes of calculating the relevant comparison
rate, credit fees or charges are not ascertainable and need
not be included in the calculation if their imposition or
amount is dependent on events that may or may not happen
(unless a regulation under this section otherwise provides).
146S Compliance grace period following changes in interest or
fees
A credit advertisement or comparison rate schedule does
not cease to comply with this Part merely because of a
change in the annual percentage rate or in any credit fees
or charges during the period of 7 days after the change
takes effect.
146T Regulations exemptions and other matters
A regulation may make provision about the following
(a) exempting any class of persons or matters from the
operation of any provision of this Part;
(b) requirements with which a credit advertisement
containing a comparison rate, or a comparison rate
schedule, must comply.
16 Government Printer, Tasmania