Financial Sector Reform Act 2022 (87 of 2022)

Schedule 4   Consumer credit reforms

Part 2   Consumer leases

National Consumer Credit Protection Act 2009

40   Subsection 115(1) of the National Credit Code

Repeal the subsection, substitute:

(1) An amount of penalty ordered by the court to be paid may:

(a) if the order was made on an application by a debtor or a guarantor in relation to a credit contract - be set off by the debtor or guarantor against any amount that is due or becomes due to the credit provider under the contract; or

(b) if the order was made on an application by a lessee in relation to a consumer lease - be set off by the lessee against any amount that is due or becomes due to the lessor under the lease.

If there is no such amount, the amount of the penalty is a debt due by the credit provider or lessor to the debtor, lessee or guarantor