Victorian Consolidated Legislation

Credit Act 1984 - SECT 81

Assignment of rights by credit provider

81. Assignment of rights by credit provider



(1) A person-

   (a)  being a credit provider, shall not assign the whole or any part of his
        rights as a credit provider under a regulated contract to a person
        other than a registered credit provider or an exempt credit provider;
        and

   (b)  being a mortgagee under a mortgage relating to a regulated contract
        shall not, subject to subsection (2), assign the whole or any part of
        his rights as a mortgagee under the mortgage to a person other than a
        registered credit provider or exempt credit provider to whom he has
        assigned his rights under the credit contract-

unless the assignment-

   (c)  is an assignment made bona fide by way of security in respect of a
        liability incurred by the assignor; or

   (d)  is made with the consent of the Director or the Tribunal.

Penalty: 10 penalty units.





(2) Where a mortgage secures payment of a debt or other pecuniary obligation
or the performance of any other obligation under a regulated contract and
secures other moneys or the performance of any other obligation, subsection
(1) does not apply to or in respect of an assignment of rights under the
mortgage that do not relate to a regulated contract.

(3) Subject to this section, where a credit provider or a mortgagee assigns
his rights as a credit provider under a regulated contract or as a mortgagee
under a regulated mortgage-

   (a)  the debtor or mortgagor and, where there is a guarantee in relation to
        the contract of mortgage, the guarantor, have, under the contract
        mortgage or guarantee the same obligations to the assignee as they
        would have had to the credit provider or mortgagee if the assignment
        had not been made; and

   (b)  subject to subsection (4), the debtor and mortgagor and any such
        guarantor have and may exercise the same rights in respect of the
        contract, mortgage or guarantee against the assignee as they have and
        may exercise against the credit provider or mortgagee.

(4) An assignee under an assignment to which subsection (1) applies of the
rights of a credit provider under a regulated contract or of a mortgagee under
a mortgage relating to a regulated contract is not liable to the debtor or
mortgagor under the contract or mortgage in respect of an amount exceeding the
amount due to the assignee under the regulated contract at the date of the
assignment.





(5) The rights of a debtor, mortgagor or guarantor referred to in paragraph
(b) of subsection (3) in respect of a regulated contract or a regulated
mortgage may not be exercised otherwise than by way of a defence or set off in
respect of a claim by the assignee under the regulated contract.

(6) Subject to section 85-

   (a)  where a credit provider assigns the whole or any part of his rights
        under a credit sale contract or a loan contract otherwise than in
        accordance with subsection (1), the debtor is not liable to pay the
        amount of the credit charge under the contract;

   (b)  where a credit provider assigns the whole or any part of his rights
        under a regulated continuing credit contract otherwise than in
        accordance with subsection (1), the debtor is not liable to pay the
        amount of the credit charge for the billing cycle during which the
        assignment occurred; and

   (c)  where a credit provider assigns the whole or any part of his rights as
        mortgagee under a regulated mortgage otherwise than in accordance with
        subsection (1)-

   (i)  where the mortgage relates to a credit sale contract or a loan
        contract, the debtor is not liable to pay the amount of the credit
        charge under the contract; and

   (ii) where the mortgage relates to a regulated continuing credit contract,
        the debtor is not liable to pay the amount of the credit charge for
        the billing cycle during which the assignment is made.

(7) This section does not apply to or in respect of an assignment that occurs
by operation of law.