National Consumer Credit Protection Act 2009
SCHEDULE 1
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NATIONAL CREDIT CODE
Division 1
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Penalties for breach of key disclosure and other requirements
114
Penalty if application made by debtor or guarantor
114(1)
On application being made by a debtor or a guarantor for an order in relation to a credit contract other than a small amount credit contract, the maximum penalty that may be imposed by the court for a contravention of a key requirement is an amount not exceeding the amount of:
(a) except as provided by paragraphs (b) and (c) - all interest charges payable under the contract from the date it was made; or
(b) in the case of a contravention of a key requirement relating to a statement of account of a continuing credit contract - all interest charges payable under the contract for the period to which the statement of account relates; or
(c) in the case of a contravention of a key requirement relating to prohibited monetary obligations - all interest charges accruing under the contract from the date the contravention occurred.
114(1A)
On application being made by a debtor or a guarantor for an order in relation to a small amount credit contract, the maximum penalty that may be imposed by the court for a contravention of a key requirement is an amount not exceeding the sum of the following amounts:
(a) the amount of the permitted establishment fee payable in relation to the contract;
(b) the total amount of the permitted monthly fees payable in relation to the contract based on the term of the contract when it was made.
114(2)
The court may, however, impose a greater penalty if the debtor or guarantor satisfies the court that the debtor has suffered a loss. The amount of the penalty is to be not less than the amount of the loss.
114(3)
For the purposes of paragraph (1)(a), the amount of future interest charges payable under a credit contract is to be calculated on the assumptions in sections 180 and 182.
Note:
See section 3 of the National Credit Act.
PART 6 - PENALTIES FOR DEFAULTS OF CREDIT PROVIDERS AND LESSORS
View history note
Hide history noteOn application being made by a debtor or a guarantor for an order in relation to a credit contract other than a small amount credit contract, the maximum penalty that may be imposed by the court for a contravention of a key requirement is an amount not exceeding the amount of:
(a) except as provided by paragraphs (b) and (c) - all interest charges payable under the contract from the date it was made; or
(b) in the case of a contravention of a key requirement relating to a statement of account of a continuing credit contract - all interest charges payable under the contract for the period to which the statement of account relates; or
(c) in the case of a contravention of a key requirement relating to prohibited monetary obligations - all interest charges accruing under the contract from the date the contravention occurred.
114(1A)
On application being made by a debtor or a guarantor for an order in relation to a small amount credit contract, the maximum penalty that may be imposed by the court for a contravention of a key requirement is an amount not exceeding the sum of the following amounts:
(a) the amount of the permitted establishment fee payable in relation to the contract;
(b) the total amount of the permitted monthly fees payable in relation to the contract based on the term of the contract when it was made.
114(2)
The court may, however, impose a greater penalty if the debtor or guarantor satisfies the court that the debtor has suffered a loss. The amount of the penalty is to be not less than the amount of the loss.
114(3)
For the purposes of paragraph (1)(a), the amount of future interest charges payable under a credit contract is to be calculated on the assumptions in sections 180 and 182.
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