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 4A - Annual cost rate of certain credit contracts  

32AA   Prohibition relating to the annual cost rate of credit contracts - later increases of the annual percentage rate etc.  

32AA(1)    
If:

(a) a credit provider is a party to a credit contract (other than a small amount credit contract or bridging finance contract); and

(b) the credit provider is not an ADI; and

(c) either or both of the following things (the varied matters ) occur after the contract is entered into:

(i) the annual percentage rate under the contract increases;

(ii) an amount referred to in subsection 32B(3) that is prescribed by the regulations increases;

the credit provider contravenes this subsection if the annual cost rate of the contract would have exceeded 48% at the time the contract was entered into if that or those varied matters had been taken into account at that time for the purposes of calculating the annual cost rate of the contract.

32AA(2)    
A credit provider must not contravene subsection (1).

Criminal penalty: 50 penalty units.