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  

26   Early payments and crediting of payments  

26(1)    
A credit provider must accept any payment under a credit contract that is made before it is payable under the contract unless the contract prohibits its early payment.

Criminal penalty: 100 penalty units.

26(2)    
A credit provider must credit each payment made under a credit contract to the debtor as soon as practicable after receipt of the payment.

Criminal penalty: 100 penalty units.

26(3)    
Subsections (1) and (2) are offences of strict liability.

Note:

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

26(4)    
Despite subsection (2), a credit provider is not required to credit a payment under a credit contract before it is payable under the contract if the contract prohibits its early payment and:

(a) the credit provider informs the debtor, as soon as practicable after the credit provider becomes aware of the payment, that it will not be credited to the debtor (or that any credit will be reversed) until it becomes payable under the contract, and the debtor elects to leave the payment with the credit provider; or

(b) the credit provider informs the debtor, before accepting the payment, that it will not be credited to the debtor until it becomes payable under the contract; or

(c) the credit provider refunds the payment to the debtor.

26(5)    
A credit contract may not, under this section, prohibit the paying out of the contract at any time under section 82.

26(6)    

A credit contract for a reverse mortgage may not prohibit an early payment that:

(a) is made in the circumstances described in paragraph 86A(1)(a); and

(b) is of the amount described in paragraph 86A(1)(b).