National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

See section 3 of the National Credit Act.

PART 7 - RELATED SALE CONTRACTS  

Division 4 - Termination of related transactions  

136   Termination of linked maintenance services contract if credit contract terminated  

136(1)    
If:

(a) there is a tied loan contract or a tied continuing credit contract made with the debtor by a linked credit provider of the supplier under a sale contract to supply maintenance services; and

(b) the tied loan contract or tied continuing credit contract is terminated (whether under this Code or any other law) before the end of the term of the sale contract;

the debtor is entitled to terminate the sale contract to supply maintenance services and recover from the supplier a proportionate rebate of consideration paid under the sale contract.

136(2)    
In any such case, the credit provider must inform the debtor in accordance with the regulations of the debtor ' s rights under this section.

Criminal penalty: 50 penalty units.

136(3)    
Subsection (2) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code .

136(4)    
The regulations may prescribe the manner of calculating the proportionate rebate of consideration for the purposes of this section.

136(5)    
This section does not apply if the credit is provided as a result of an approach by the debtor that was not induced by the supplier or credit provider.