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.

View history note

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.

View history note

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