National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

See section 3 of the National Credit Act.

PART 2 - CREDIT CONTRACTS  

Division 4A - Annual cost rate of certain credit contracts  

32A   Prohibitions relating to credit contracts if the annual cost rate exceeds 48%  

Entering into a credit contract

32A(1)    
A credit provider must not enter into a credit contract if the annual cost rate of the contract exceeds 48%.

Criminal penalty: 50 penalty units.

Provision of credit assistance

32A(2)    
A person must not provide credit assistance to a consumer by suggesting that the consumer apply, or assisting the consumer to apply, for a particular credit contract with a particular credit provider if the person knows, or is reckless as to whether, the annual cost rate of the contract exceeds 48%.

Criminal penalty: 50 penalty units.

32A(3)    
If a person provides credit assistance to a consumer that is prohibited by subsection (2):

(a) the consumer is not liable (and is taken never to have been liable) to pay any fees or charges to the person in relation to:

(i) the credit assistance; or

(ii) any other services provided by the person in connection with the credit assistance; and

(b) the consumer may recover as a debt due to the consumer the amount of any such fees or charges paid by the consumer to the person.

Application

32A(4)    
This section does not apply if:

(a) the credit provider is an ADI; or

(b) the credit contract is a small amount credit contract or bridging finance contract.