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  

64   Interest rate changes  
Notification of interest rate changes

64(1)    
A credit provider must, not later than the day on which a change in the annual percentage rate or rates payable under a credit contract takes effect, give to the debtor written notice setting out:

(a) the new rate or rates or, if a rate is determined by referring to a reference rate, the new reference rate; and

(b) any information required by the regulations.

Criminal penalty: 100 penalty units.

Notification by publication

64(2)    

Notice under subsection (1) may be given by publishing the notice in a newspaper circulating throughout each State and Territory. A credit provider that gives notice in accordance with this subsection must give to the debtor particulars of the change before or when the next statement of account is sent to the debtor after the change takes effect.

Criminal penalty: 100 penalty units.

Changes in reference rates

64(3)    

Subsection (1) does not apply to a change in a rate that is determined by referring to a reference rate if the changed reference rate is notified (whether or not by the credit provider) in a newspaper circulating throughout each State and Territory not later than the date the change takes effect.

Notification of other interest changes

64(4)    
A credit provider must, not later than 20 days before a change in the manner in which interest is calculated or applied under a credit contract (including a change in or abolition of any interest free period under the contract) takes effect, give to the debtor written notice setting out:

(a) particulars of the change; and

(b) any information required by the regulations.

Criminal penalty: 100 penalty units.

Interest rate reductions

64(5)    
Subsections (1) and (4) do not apply to a change that reduces the obligations of the debtor under the credit contract.

Strict liability offences

64(6)    
Subsections (1), (2) and (4) are offences of strict liability.

Note:

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

Application

64(7)    
This section applies whether or not the change is a change to the terms of the contract.