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Credit Law

Care Consumer Law offers advice about your protections under the National Consumer Credit Protection Act 2009 (Credit law). It includes a schedule known as the National Credit Code.

It applies when credit is provided or meant to be provided for personal, domestic, or household purposes (or to refinance a loan taken out for these purposes).

Under the Credit law, consumers have important protections, such as:

  • Certain information about a credit contract must be disclosed to the consumers.

  • Mandatory notices: credit providers must take certain steps before seizing goods and property, and before commencing court proceedings. For example, they must issue a default notice giving at least 30 days to repay any arrears before court action or repossession can take place.

  • Certain procedures must be followed for the repossession of goods (including cars).

  • Credit providers and brokers must be in an External Dispute Resolution scheme.

  • Consumers can request documents from credit providers.

  • Consumers can challenge unjust contracts and unsuitable loans (responsible lending).

  • Consumers have the right to apply for a repayment arrangement on the grounds of financial hardship. We will work with you and financial counsellors to help you work through your hardship.

Examples of loans that the Credit law would usually apply to:

  • car loans

  • personal loans

  • home loans

  • consumer leases (e.g. car leases and rental contracts for goods)

  • credit cards

  • investment property loan (for loans granted on or after 1 July 2010)

Examples of loans that the Credit law would not apply to:

  • short term loans (under two months)

  • insurance premiums paid by instalments

  • investment loans for shares, business loans and business leases

  • pawnbroking loans

  • staff loans and other financial transactions related to your employment, such as novated leases

  • overdrafts that have not been arranged in advance with the financial institutions

  • charge cards when the entire balance must be paid every month.

It is not uncommon for lenders and their agents to ask borrowers to sign a business or investment purposes declaration stating the loan is for a purpose not regulated by the Credit law. Such declaration will be accepted as proof that Credit law does not apply, unless the lender or their agent knew, or had reason to believe, that the credit was in fact for personal purposes, or largely for personal purposes. If this is the case, it is important that you get legal advice.

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Here to help

If you would like to access free legal assistance, contact the Consumer Law team 

02 6143 0044  

I just wanted to express my massive gratitude for your assistance in this matter.

The emotional and mental improvement that has come from what you have done for me is incredible.

I hope you continue to help people in the way you have helped me and I wish you nothing but the best for the future

Care Consumer Law's client