National Consumer Credit Protection Act 2009
SCHEDULE 1
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NATIONAL CREDIT CODE
Short term credit
6(1)
This Code does not apply to the provision of credit if, under the contract:
(a) the provision of credit is limited to a total period that does not exceed 62 days; and
(b) the maximum amount of credit fees and charges that may be imposed or provided for does not exceed 5 % of the amount of credit; and
(c) the maximum amount of interest charges that may be imposed or provided for does not exceed an amount (calculated as if the Code applied to the contract) equal to the amount payable if the annual percentage rate were 24 % per annum.
6(2)
For the purposes of paragraph (1)(b), credit fees and charges imposed or provided for under the contract are taken to include the following, whether or not payable under the contract:
(a) a fee or charge payable by the debtor to any person for an introduction to the credit provider;
(b) a fee or charge payable by the debtor to any person for any service if the person has been introduced to the debtor by the credit provider;
(c) a fee or charge payable by the debtor to the credit provider for any service related to the provision of credit, other than a service mentioned in paragraph (b).
6(3)
For the purposes of paragraphs (2)(a) and (b), it does not matter whether or not there is an association between the person and the credit provider.
Credit without express prior agreement
6(4)
This Code does not apply to the provision of credit if, before the credit was provided, there was no express agreement between the credit provider and the debtor for the provision of credit. For example, when a cheque account becomes overdrawn but there is no expressly agreed overdraft facility or when a savings account falls into debit.
Credit for which only account charge payable
6(5)
This Code does not apply to the provision of credit under a continuing credit contract if the only charge that is or may be made for providing the credit is a periodic or other fixed charge that does not vary according to the amount of credit provided. However, this Code applies if the charge is of a nature prescribed by the regulations for the purposes of this subsection or if the charge exceeds the maximum charge (if any) so prescribed.
Joint credit and debit facilities
6(6)
This Code does not apply to any part of a credit contract under which both credit and debit facilities are available to the extent that the contract or any amount payable or other matter arising out of it relates only to the debit facility.
Bill facilities
6(7)
This Code applies to the provision of credit arising out of a bill facility, that is, a facility under which the credit provider provides credit by accepting, drawing, discounting or endorsing a bill of exchange or promissory note. However, it does not apply if:
(a) the credit is provided by an authorised deposit-taking institution (within the meaning of subsection 5(1) of the Banking Act 1959 ); or
(b) the regulations provide that the Code does not apply to the provision of all or any credit arising out of such a facility.
Insurance premiums by instalments
6(8)
This Code does not apply to the provision of credit by an insurer for the purpose of the payment to the insurer of an insurance premium by instalments, even though the instalments exceed the total of the premium that would be payable if the premium were paid in a lump sum, if on cancellation the insured would have no liability to make further payments under the contract.
Pawnbrokers
6(9)
This Code does not apply to the provision of credit on the security of pawned or pledged goods by a pawnbroker in the ordinary course of a pawnbroker ' s business (being a business which is being lawfully conducted by the pawnbroker) as long as it is the case that, if the debtor is in default, the pawnbroker ' s only recourse is against the goods provided as security for the provision of the credit. However, sections 76 to 81 (Court may reopen unjust transactions) apply to any such provision of credit.
Trustees of estates
6(10)
This Code does not apply to the provision of credit by the trustee of the estate of a deceased person by way of an advance to a beneficiary or prospective beneficiary of the estate. However, sections 76 to 81 (Court may reopen unjust transactions) apply to any such provision of credit.
Employee loans
6(11)
This Code (other than this Part, Part 4, Division 3 of Part 5, Divisions 4 and 5 of Part 7 and Parts 12, 13 and 14) does not apply to the provision of credit by an employer, or a related body corporate within the meaning of the Corporations Act 2001 of an employer, to an employee or former employee (whether or not it is provided to the employee or former employee with another person). However, for a credit provider that provides credit to which this Code applies in the course of a business of providing credit to which this Code applies to employees or former employees and to others, this subsection applies only to the provision of credit on terms that are more favourable to the debtor than the terms on which the credit provider provides credit to persons who are not employees or former employees of the credit provider or a related body corporate.
Margin loans
6(12)
This Code does not apply to the provision of credit by way of a margin loan (within the meaning of subsection 761EA(1) of the Corporations Act 2001 ).
Regulations may exclude credit
6(13)
The regulations may exclude, from the application of this Code, the provision of credit of a class specified in the regulations. In particular (but without limiting the generality of the foregoing), the regulations may so exclude the provision of credit if the amount of the credit exceeds or may exceed a specified amount or if the credit is provided by a credit provider of a specified class.
ASIC may exclude credit
6(14)
ASIC may exclude, from the application of this Code, a provision of credit specified by ASIC.
6(15)
Without limiting subsection (14), ASIC may exclude a provision of credit if:
(a) the amount of the credit exceeds, or may exceed, a specified amount; or
(b) the credit is provided by a specified credit provider.
6(16)
An exemption under subsection (14) is not a legislative instrument.
6(17)
ASIC may, by legislative instrument, exclude from the application of this Code, the provision of credit of a class specified in the instrument.
6(18)
Without limiting subsection (17), ASIC may exclude a provision of credit if:
(a) the amount of the credit exceeds, or may exceed, a specified amount; or
(b) the credit is provided by a specified credit provider, or a class of credit providers.
Definitions
6(19)
In this section:
Note:
See section 3 of the National Credit Act.
PART 1 - PRELIMINARY 6 Provision of credit to which this Code does not applyShort term credit
6(1)
This Code does not apply to the provision of credit if, under the contract:
(a) the provision of credit is limited to a total period that does not exceed 62 days; and
(b) the maximum amount of credit fees and charges that may be imposed or provided for does not exceed 5 % of the amount of credit; and
(c) the maximum amount of interest charges that may be imposed or provided for does not exceed an amount (calculated as if the Code applied to the contract) equal to the amount payable if the annual percentage rate were 24 % per annum.
6(2)
For the purposes of paragraph (1)(b), credit fees and charges imposed or provided for under the contract are taken to include the following, whether or not payable under the contract:
(a) a fee or charge payable by the debtor to any person for an introduction to the credit provider;
(b) a fee or charge payable by the debtor to any person for any service if the person has been introduced to the debtor by the credit provider;
(c) a fee or charge payable by the debtor to the credit provider for any service related to the provision of credit, other than a service mentioned in paragraph (b).
6(3)
For the purposes of paragraphs (2)(a) and (b), it does not matter whether or not there is an association between the person and the credit provider.
Credit without express prior agreement
6(4)
This Code does not apply to the provision of credit if, before the credit was provided, there was no express agreement between the credit provider and the debtor for the provision of credit. For example, when a cheque account becomes overdrawn but there is no expressly agreed overdraft facility or when a savings account falls into debit.
Credit for which only account charge payable
6(5)
This Code does not apply to the provision of credit under a continuing credit contract if the only charge that is or may be made for providing the credit is a periodic or other fixed charge that does not vary according to the amount of credit provided. However, this Code applies if the charge is of a nature prescribed by the regulations for the purposes of this subsection or if the charge exceeds the maximum charge (if any) so prescribed.
Joint credit and debit facilities
6(6)
This Code does not apply to any part of a credit contract under which both credit and debit facilities are available to the extent that the contract or any amount payable or other matter arising out of it relates only to the debit facility.
Bill facilities
6(7)
This Code applies to the provision of credit arising out of a bill facility, that is, a facility under which the credit provider provides credit by accepting, drawing, discounting or endorsing a bill of exchange or promissory note. However, it does not apply if:
(a) the credit is provided by an authorised deposit-taking institution (within the meaning of subsection 5(1) of the Banking Act 1959 ); or
(b) the regulations provide that the Code does not apply to the provision of all or any credit arising out of such a facility.
Insurance premiums by instalments
6(8)
This Code does not apply to the provision of credit by an insurer for the purpose of the payment to the insurer of an insurance premium by instalments, even though the instalments exceed the total of the premium that would be payable if the premium were paid in a lump sum, if on cancellation the insured would have no liability to make further payments under the contract.
Pawnbrokers
6(9)
This Code does not apply to the provision of credit on the security of pawned or pledged goods by a pawnbroker in the ordinary course of a pawnbroker ' s business (being a business which is being lawfully conducted by the pawnbroker) as long as it is the case that, if the debtor is in default, the pawnbroker ' s only recourse is against the goods provided as security for the provision of the credit. However, sections 76 to 81 (Court may reopen unjust transactions) apply to any such provision of credit.
Trustees of estates
6(10)
This Code does not apply to the provision of credit by the trustee of the estate of a deceased person by way of an advance to a beneficiary or prospective beneficiary of the estate. However, sections 76 to 81 (Court may reopen unjust transactions) apply to any such provision of credit.
Employee loans
6(11)
This Code (other than this Part, Part 4, Division 3 of Part 5, Divisions 4 and 5 of Part 7 and Parts 12, 13 and 14) does not apply to the provision of credit by an employer, or a related body corporate within the meaning of the Corporations Act 2001 of an employer, to an employee or former employee (whether or not it is provided to the employee or former employee with another person). However, for a credit provider that provides credit to which this Code applies in the course of a business of providing credit to which this Code applies to employees or former employees and to others, this subsection applies only to the provision of credit on terms that are more favourable to the debtor than the terms on which the credit provider provides credit to persons who are not employees or former employees of the credit provider or a related body corporate.
Margin loans
6(12)
This Code does not apply to the provision of credit by way of a margin loan (within the meaning of subsection 761EA(1) of the Corporations Act 2001 ).
Regulations may exclude credit
6(13)
The regulations may exclude, from the application of this Code, the provision of credit of a class specified in the regulations. In particular (but without limiting the generality of the foregoing), the regulations may so exclude the provision of credit if the amount of the credit exceeds or may exceed a specified amount or if the credit is provided by a credit provider of a specified class.
ASIC may exclude credit
6(14)
ASIC may exclude, from the application of this Code, a provision of credit specified by ASIC.
6(15)
Without limiting subsection (14), ASIC may exclude a provision of credit if:
(a) the amount of the credit exceeds, or may exceed, a specified amount; or
(b) the credit is provided by a specified credit provider.
6(16)
An exemption under subsection (14) is not a legislative instrument.
6(17)
ASIC may, by legislative instrument, exclude from the application of this Code, the provision of credit of a class specified in the instrument.
6(18)
Without limiting subsection (17), ASIC may exclude a provision of credit if:
(a) the amount of the credit exceeds, or may exceed, a specified amount; or
(b) the credit is provided by a specified credit provider, or a class of credit providers.
Definitions
6(19)
In this section:
fee or charge
does not include a government fee, charge or duty of any kind.
security
, of pawned or pledged goods, means security by way of bailment of the goods under which the title to the goods does not pass, conditionally or unconditionally, to the bailee.
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