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 4 - Fees and charges  

31C   Prohibition on unexpired monthly fees in relation to small amount credit contracts  

Requirement

31C(1)    
A credit provider must not require or accept payment by the debtor under a small amount credit contract of an unexpired monthly fee.

31C(2)    
An unexpired monthly fee in relation to a small amount credit contract is each permitted monthly fee that is in respect of a month that commences after the date on which the contract is paid out.

31C(3)    
If a credit provider contravenes subsection (1) in relation to a small amount credit contract:

(a)    the debtor is not liable (and is taken never to have been liable) to make the payment of the unexpired monthly fee to the credit provider; and

(b)    the debtor may recover as a debt due to the debtor the amount of any payment of the unexpired monthly fee made by the debtor to the credit provider.

Offence

31C(4)    
A person commits an offence if:

(a)    the person is subject to a requirement under subsection (1) ; and

(b)    the person engages in conduct; and

(c)    the conduct contravenes the requirement.

Criminal penalty: 100 penalty units.

Strict liability offence

31C(5)    
A person commits an offence if:

(a)    the person is subject to a requirement under subsection (1) ; and

(b)    the person engages in conduct; and

(c)    the conduct contravenes the requirement.

Criminal penalty: 10 penalty units.

31C(6)    
Subsection (5) is an offence of strict liability.