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  

23A   Prohibited monetary obligations - small amount credit contracts  

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23A(1)    
A small amount credit contract must not impose a monetary liability on the debtor:


(a) in respect of an interest charge (including a default rate of interest) under the contract; or


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


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

23A(2)    
If a provision of a small amount credit contract imposes a monetary liability prohibited by subsection (1) then:


(a) each provision (the void provisions ) of the contract that imposes a monetary liability of a kind referred to in that subsection (whether or not the liability is imposed consistently with this Code) is void to the extent that the provision relates to the liability; and


(b) the debtor may recover as a debt due to the debtor any amount paid to the credit provider under the void provisions to the extent that the amount relates to the liability.

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