Consumer Credit Legislation Amendment (Enhancements) Act 2012 (130 of 2012)

Schedule 1   Enhancements

Part 1   Protection of debtor in cases of hardship

National Consumer Credit Protection Act 2009

9   Subsections 94(3) and (4) of the National Credit Code

Repeal the subsections, substitute:

Enforcement proceedings

(3) If the debtor, mortgagor or guarantor gives the postponement request, the credit provider must not begin enforcement proceedings unless:

(a) the credit provider has given the debtor, mortgagor or guarantor a notice under subsection (2) in response to the postponement request; and

(b) the period of 14 days, starting on the day the credit provider gives the notice under subsection (2), has expired.

Criminal penalty: 50 penalty units.

Note: The credit provider must allow the debtor or mortgagor at least 30 days from the date of the default notice to remedy the default - see section 88. The 14-day period in subsection (3) may end before, at the same time as, or after the end of the period for remedying the default specified in the default notice.

(4) However, the credit provider may take possession of mortgaged goods if the credit provider reasonably believes that:

(a) the debtor or mortgagor has removed or disposed of the mortgaged goods, or intends to remove or dispose of them, without the credit provider's permission; or

(b) urgent action is necessary to protect the goods.

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

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