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 2 - Debtor ' s monetary obligations  

23   Prohibited monetary obligations - general  

23(1)    

A credit contract (other than a small amount credit contract) must not impose a monetary liability on the debtor:

(a) in respect of a credit fee or charge prohibited by this Code; or

(b) in respect of an amount of a fee or charge exceeding the amount that may be charged consistently with this Code; or

(c) in respect of an interest charge under the contract exceeding the amount that may be charged consistently with this Code.

Note 1:

A penalty may be imposed for contravention of a key requirement in this subsection, but only at the time the credit contract is entered into: see Part 6.

Note 2:

This subsection also applies to liabilities imposed contrary to section 133BI of the National Credit Act: see subsection (7) of that section.

Civil effect

23(2)    
Any provision of a credit contract that imposes a monetary liability prohibited by subsection (1) is void to the extent that it does so. If an amount that is prohibited by subsection (1) is paid, it may be recovered.

23(3)    
A credit fee or charge cannot be charged in respect of a credit contract unless the contract authorises it to be charged.

Civil effect

23(4)    
If an amount that is prohibited by subsection (3) is paid, it may be recovered.