National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

See section 3 of the National Credit Act.

PART 4 - CHANGES TO OBLIGATIONS UNDER CREDIT CONTRACTS, MORTGAGES AND GUARANTEES  

Division 2 - Changes by agreement of parties  

71   Changes by agreement  

71(1)    

If the parties under an existing credit contract, mortgage or guarantee agree to change its terms, the credit provider must, not later than 30 days after the date of the agreement, give to the other party under the agreement a written notice setting out:

(a) particulars of the change in the terms of the credit contract, mortgage or guarantee; and

(b) any information required by the regulations.

Criminal penalty: 100 penalty units.

71(2)    
Subsection (1) does not apply to a change which defers or otherwise reduces the obligations of the debtor for a period not exceeding 90 days or to an agreement to increase the amount of credit under a credit contract.

71(3)    
If the parties under a credit contract (other than a continuing credit contract) propose to increase the amount of credit under the contract by agreement, the credit provider must also, before the agreement is made, give to the debtor a written notice containing the information required by the regulations.

Criminal penalty: 100 penalty units.

71(4)    
This section does not apply to a change made under Division 3.

71(5)    
The credit provider may, under subsection (1), give a person particulars only of a matter as changed instead of particulars of the change, but only if the credit provider:

(a) makes it clear to the person that the matter has changed; or

(b) issues to the person a new set of terms and conditions relating to the credit contract, mortgage or guarantee.

71(6)    
Subsections (1) and (3) are offences of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code .