National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

See section 3 of the National Credit Act.

PART 4 - CHANGES TO OBLIGATIONS UNDER CREDIT CONTRACTS, MORTGAGES AND GUARANTEES  

Division 1 - Unilateral changes by credit provider  

67   Changes to credit limits etc. in continuing credit contracts  
Changes merely because financial hardship information exists

67(1A)    

A provision of a continuing credit contract has no effect to the extent that a credit provider purports to rely on the provision to:

(a)    refuse to provide any further credit to the debtor; or

(b)    reduce the debtor ' s credit limit;

merely because financial hardship information (within the meaning of the Privacy Act 1988 ) about the debtor exists.

Credit contracts continue for any credit previously provided

67(1)    
If a credit provider decides not to provide any further credit under a continuing credit contract, the credit contract continues in force in relation to any credit previously provided under the contract. However, this subsection does not prevent the termination of the contract if otherwise permitted by this Code or the contract.

Giving notice of decision not to provide further credit or of decision to reduce credit limit

67(2)    
A credit provider must, unless the debtor is in default under the contract, as soon as practicable after deciding not to provide any further credit or to reduce the credit limit, give to the debtor a written notice to that effect if such notice has not previously been given.

Criminal penalty: 100 penalty units.

67(3)    
Subsection (2) is an offence of strict liability.

Note:

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

Credit limits may only be increased at request or with consent

67(4)    
A credit provider may increase the credit limit under a continuing credit contract only at the request of the debtor or with the written consent of the debtor.