National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

See section 3 of the National Credit Act.

PART 8 - RELATED INSURANCE CONTRACTS  

144   Financing of insurance premiums over mortgaged property  

144(1)    
A credit provider must not knowingly provide credit to the debtor to pay the premium or finance the premium on insurance taken out by the debtor over mortgaged property for a period of insurance exceeding 1 year, but may provide credit for or finance successive premiums for periods of 1 year or less.

Criminal penalty: 100 penalty units.

144(2)    
The credit provider must not knowingly debit the premium to the debtor ' s account more than 30 days before the beginning of the period of insurance to which it relates.

Criminal penalty: 100 penalty units.

Civil effect

144(3)    
If a credit provider contravenes subsection (1), the insured is entitled to recover the whole of the premium paid under the contract from the credit provider. If a credit provider contravenes subsection (2), the insured is entitled to recover the amount of premium debited in contravention of the subsection.