National Consumer Credit Protection Act 2009
Note:
See section 3 of the National Credit Act.
PART 2 - CREDIT CONTRACTS Division 5A - Additional rules relating to small amount credit contracts
View history note
Hide history noteNo part of the amount of credit provided under a small amount credit contract may be applied to pay an amount (the prohibited credit amount ) to:
(a) the credit provider; or
(b) a person prescribed by the regulations.
39A(2)
Subsection (1) does not apply to:
(a) an amount of a permitted establishment fee, or a permitted monthly fee, payable in relation to the small amount credit contract; or
(b) an amount of a government fee, charge or duty payable in relation to the small amount credit contract; or
(ba) if some or all of the amount of credit (the refinanced amount ) is to refinance some or all of the amount of credit provided by the credit provider to the debtor under another small amount credit contract - the refinanced amount; or
(c) an amount prescribed by the regulations.
39A(3)
If subsection (1) is contravened in relation to a small amount credit contract:
(a) the debtor is not liable (and is taken never to have been liable) to repay the prohibited credit amount to the credit provider; and
(b) the debtor may recover as a debt due to the debtor any amount paid to the credit provider to the extent that it relates to the prohibited credit amount.
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