Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) ASIC may accept a written undertaking given by a person in connection with a matter in relation to which ASIC has a function or power under the Commonwealth credit legislation.
(2) The person may withdraw or vary the undertaking at any time, but only with ASIC's consent.
(3) If ASIC considers that the person who gave the undertaking has breached any of its terms, ASIC may apply to the court for an order under subsection (4).
(4) If the court is satisfied that the person has breached a term of the undertaking, the court may make all or any of the following orders:
(a) an order directing the person to comply with that term of the undertaking;
(b) an order directing the person to pay to the Commonwealth an amount up to the amount of any financial benefit that the person has obtained directly or indirectly and that is reasonably attributable to the breach;
(c) any order that the court considers appropriate directing the person to compensate any other person who has suffered loss or damage as a result of the breach;
(d) any other order that the court considers appropriate.
National Consumer Credit Protection Act 2009
No. 134, 2009
Compilation No. 48
Compilation date: 14 October 2024
Includes amendments: Act No. 38, 2024
This compilation is in 2 volumes
Schedule 1
Endnotes
Each volume has its own contents
This compilation
This is a compilation of the National Consumer Credit Protection Act 2009 that shows the text of the law as amended and in force on 14 October 2024 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Chapter 7--Miscellaneous
Part 7 - 1--Miscellaneous
Division 1--Introduction
323 Guide to this Part
Division 1A--Avoidance schemes
323A Schemes for avoidance purposes
323B Whether it is reasonable to draw conclusion as to purpose
323C Presumption of avoidance for certain schemes in civil cases
323D Exemption by ASIC
Division 2--Liability of persons for conduct of their agents etc.
324 Liability for bodies corporate for conduct of their agents, employees etc.
325 Liability of persons (other than bodies corporate) for the conduct of their agents, employees etc.
326 Regulations for the purposes of this Division
Division 3--Review of ASIC's decisions
327 Review by Administrative Review Tribunal of decisions by ASIC under this Act
328 Notice of reviewable decision and review rights
Division 4--Regulations
329 Regulations
330 Regulations--where proceedings may be brought
Division 5--Other miscellaneous provisions
332 Civil penalty provisions contravened or offences committed partly in and partly out of this jurisdiction
333 Contravention of Act does not generally affect validity of transactions etc.
334 Contracting out etc.
335 Indemnities
336 Acquisition of property
337 Minister may delegate prescribed functions and powers under this Act
Schedule 1--National Credit Code
Part 1--Preliminary
1 Short title
2 Interpretation generally
3 Meaning of credit and amount of credit
4 Meaning of credit contract
5 Provision of credit to which this Code applies
6 Provision of credit to which this Code does not apply
7 Mortgages to which this Code applies
8 Guarantees to which this Code applies
9 Goods leases with option to purchase to be regarded as sale by instalments
10 Deciding application of Code to particular contracts for the sale of land by instalments
11 Deciding application of Code to particular contracts for the sale of goods by instalments
12 Deciding application of Code to particular contracts for the sale of goods by instalments under related contracts
13 Presumptions relating to application of Code
Part 2--Credit contracts
Division 1--Negotiating and making credit contracts
14 Credit contract to be in form of written contract document
15 Other forms of contract
16 Precontractual disclosure
17 Matters that must be in contract document
18 Form and expression of contract document
18A Provisions that must not be included in credit contract for reverse mortgage
18B Disclosure if credit contract for reverse mortgage does not protect tenancy of person other than debtor
18C Independent legal advice before entry into credit contract for reverse mortgage
19 Alteration of contract document
20 Copy of contract for debtor
21 When debtor may terminate contract
22 Offence for noncompliance
Division 2--Debtor's monetary obligations
23 Prohibited monetary obligations--general
23A Prohibited monetary obligations--small amount credit contracts
24 Offences related to prohibited monetary obligations--credit providers
24A Offences related to prohibited monetary obligations--credit assistance providers
25 Loan to be in money or equivalent
26 Early payments and crediting of payments
26A Regulations about residential investment property
Division 3--Interest charges
27 Definitions relating to interest
27A Application of this Division
28 Limit on interest charges
29 Early debit or payment of interest charges prohibited
30 Default interest
30A Regulations about residential investment property
30B Regulations about credit card contracts
Division 4--Fees and charges
31 Prohibited credit fees or charges
31A Restrictions on fees and charges for small amount credit contracts
31B Credit provider or prescribed person must not require or accept payment of a fee or charge in relation to a small amount credit contract etc.
31C Prohibition on unexpired monthly fees in relation to small amount credit contracts
32 Fees or charges in relation to third parties
Division 4A--Annual cost rate of certain credit contracts
32A Prohibitions relating to credit contracts if the annual cost rate exceeds 48%
32AA Prohibition relating to the annual cost rate of credit contracts--later increases of the annual percentage rate etc.
32B Calculation of annual cost rate
Division 5--Credit provider's obligation to account
33 Statements of account
34 Information to be contained in statements of account
35 Opening balance must not exceed closing balance of previous statement
36 Statement of amount owing and other matters
37 Court may order statement to be provided
38 Disputed accounts
39 Dating and adjustment of debits and credits in accounts
Division 5A--Additional rules relating to small amount credit contracts
39A Limit on the application of amount of credit provided under a small amount credit contract
39B Limit on amount that may be recovered if there is default under a small amount credit contract
39C Credit provider must do prescribed things if a default in payment by direct debit occurs
Division 6--Certain transactions not to be treated as new contracts
40 Changes etc. under contracts
Part 3--Related mortgages and guarantees
Division 1--Mortgages
41 Application of Division
42 Form of mortgage
43 Copy of mortgage for mortgagor
44 Mortgages over all property void
45 Restriction on mortgage of future property
46 Mortgages and continuing credit contracts
47 All accounts mortgages
48 Third party mortgages prohibited
49 Maximum amount which may be secured
50 Prohibited securities
51 Assignment or disposal of mortgaged property by mortgagor
52 Conditions on consent to assignment or disposal of property subject to mortgage
53 Offence for noncompliance
Division 2--Guarantees
54 Application of Division
55 Form of guarantee
56 Disclosure
57 Copies of documents for guarantor
58 Guarantor may withdraw before credit is provided
59 Extension of guarantee
60 Limitation of guarantor's liability
61 Increase in guarantor's liabilities
62 Offence for noncompliance
Part 4--Changes to obligations under credit contracts, mortgages and guarantees
Division 1--Unilateral changes by credit provider
63 Application of Division
64 Interest rate changes
65 Repayment changes
66 Credit fees and charges changes
67 Changes to credit limits etc. in continuing credit contracts
67A Changes to tenancy protection in credit contracts for reverse mortgages
68 Other unilateral changes by credit provider
69 Particulars of matters as changed only required to be given under this Division in certain cases
70 Prohibited increases in liabilities
Division 2--Changes by agreement of parties
71 Changes by agreement
Division 3--Changes on grounds of hardship and unjust transactions
72 Changes on grounds of hardship
73 Notice of change
74 Changes by court
75 Credit provider may apply for variation of change
76 Court may reopen unjust transactions
77 Orders on reopening of transactions
78 Court may review unconscionable interest and other charges
79 Applications by ASIC
80 Time limit
81 Joinder of parties
Part 5--Ending and enforcing credit contracts, mortgages and guarantees
Division 1--Ending of credit contract by debtor etc.
Subdivision A--Paying out contract etc.
82 Debtor's or guarantor's right to pay out contract
83 Statement of pay out figure
84 Court may determine pay out figure if credit provider does not provide a pay out figure
85 Surrender of mortgaged goods and goods subject to sale by instalments
86 Compensation to debtor or mortgagor
Subdivision B--Ending of reverse mortgage by credit provider receiving value of reverse mortgaged property
86A Application of this Subdivision
86B Discharge of debtor's obligations under credit contract and discharge of mortgage
86C Credit provider must pay debtor excess of receipt over adjusted market value for reverse mortgaged property
86D Credit provider must not demand or accept further payments
86E Cases in which sections 86B, 86C and 86D do not apply
86F Relationship between this Subdivision and other provisions
Subdivision C--Notice of first direct debit default
87 One - off notice to be given the first time a direct debit default occurs
Division 2--Enforcement of credit contracts, mortgages and guarantees
88 Requirements to be met before credit provider can enforce credit contract or mortgage against defaulting debtor or mortgagor
89 Defaults may be remedied
89A Effect of hardship notices on enforcement
90 Requirements to be met before credit provider can enforce guarantee against guarantor
91 Requirements to be met before credit provider can repossess mortgaged goods
93 Requirements to be met before credit provider can enforce an acceleration clause
93A Extra requirements for enforcing reverse mortgage if debtor's liability exceeded value of reverse mortgaged property
Division 3--Postponement of enforcement proceedings
94 Postponement of exercise of rights
95 Effect of negotiated postponement
96 Postponement by court
97 Credit provider may apply for variation of postponement order
Division 4--Enforcement procedures for goods mortgaged
98 Information as to location of mortgaged goods
99 Entry to residential property to take possession of goods
100 Court may order entry
101 Order for possession
102 Procedures to be followed by credit provider after taking possession of goods
103 Mortgagor may nominate purchaser of goods taken by credit provider
104 Sale of goods by credit provider
105 Matters for which account can be debited after mortgagee sale of goods
106 Compensation to mortgagor
Division 5--Enforcement expenses
107 Recovery of enforcement expenses
Division 6--Mortgagor's remedies
108 Mortgagor may apply to regain possession of mortgaged goods
109 Order for possession for mortgagor
110 Ancillary or consequential orders
Part 6--Penalties for defaults of credit providers and lessors
Division 1--Penalties for breach of key disclosure and other requirements
111 Key requirements
112 Application for order relating to key requirements
113 Penalty may be imposed for contravention of key requirement
114 Penalty if application made by debtor or guarantor
114A Penalty if application made by lessee
115 Payment of penalty to debtor, lessee or guarantor
116 Penalty if application made by credit provider, lessor or ASIC
117 Payment of penalty
118 Compensation for debtor, lessee or guarantor
119 General provisions relating to applications by credit providers, lessors or ASIC
120 ASIC may represent interests of debtors and lessees
121 Directions pending court's decision
122 Offences
123 Time limit for application for orders under this Division
Division 2--Other penalties
124 Civil effect of contraventions
Part 7--Related sale contracts
Division 1--Interpretation and application
125 Meaning of sale contract
126 Sale contracts to which this Part applies
127 Linked credit providers and tied credit contracts
Division 2--Liability of credit providers for suppliers' misrepresentations
128 Credit provider liable with respect to supplier's misrepresentations etc. about tied credit contract
Division 3--Liability of credit providers in relation to goods
129 Right to damages under sale contract against both supplier and linked credit provider
130 Limits on debtor's right of action against linked credit provider
131 Liability of supplier to linked credit provider
132 Interest may be awarded
133 Subrogation of credit provider
Division 4--Termination of related transactions
134 Termination of sale contract which is conditional on obtaining credit
135 Termination of (or recredit under) tied credit contract if sale contract terminated
136 Termination of linked maintenance services contract if credit contract terminated
137 Termination of contract under this Part to be in writing
138 Powers of court with respect to termination of contract under this Part
139 Part 5 not to apply to termination of contract under this Part
Division 5--Other provisions
140 Requirement as to source of credit for goods or services
141 Prohibition on payment for goods or services by postdated bills of exchange or notes which exceed cash price of goods or services
Part 8--Related insurance contracts
142 Interpretation and application
143 Requirement to take out insurance or to insure with particular insurer or on particular terms
144 Financing of insurance premiums over mortgaged property
145 Commission for consumer credit insurance
146 Supply of copy of credit - related insurance contract by insurer
147 Rejection of debtor's proposal for insurance
148 Termination of consumer credit insurance contract if credit contract terminated
149 Termination of insurance contract over mortgaged property if credit contract terminated
Part 9--Advertising and related conduct
150 Advertising
151 Persons liable for advertisements
152 Defence
153 Interest rates which may be disclosed
154 False or misleading representations
155 Harassment
156 Canvassing of credit at home
Part 10--Comparison rates
Division 1--Preliminary
157 Object of Part
158 Part not to apply to continuing credit contracts
159 Definitions
Division 2--Comparison rate in credit advertising
160 Comparison rate mandatory in advertisements containing annual percentage rate
161 The relevant comparison rate
162 Information about comparison rate
163 Warning about comparison rate
164 Other requirements for comparison rate
Division 3--Comparison rate in other documents
165 Comparison rates in documents other than credit advertising
Division 4--Miscellaneous
166 Calculation of comparison rates
167 Compliance grace period following changes in interest or fees
168 Regulations--exemptions and other matters
Part 11--Consumer leases
Division 1--Interpretation and application
169 Meaning of consumer lease
170 Consumer leases to which this Part applies
171 Consumer leases to which this Part does not apply
172 Presumptions relating to application of this Part
Division 2--Form of and information to be included in consumer leases
173 Form of consumer lease
173A Other forms of consumer lease
174 Disclosures in consumer leases
174A Alteration of consumer lease document
175 Copy of lease etc. for lessee
Division 4--Fees and charges
175A Prohibited consumer lease fees or charges
175AA Cap on fees and charges for consumer leases
175AB Imposing fees or charges above the permitted cap--offence
175AC Lessee may recover fees and charges exceeding base price if cap is breached
175B Fees or charges in relation to third parties
Division 5--Lessor's obligation to account
Subdivision A--Ongoing statements of account
175C Statements of account
175D Information to be contained in statements of account
175E Statement of amount owing and other matters
175F Court may order statement of account to be provided
175G Disputed accounts
Subdivision B--End of lease statements
175H End of lease statement
Division 6--Certain transactions not to be treated as new consumer leases
175J Changes etc. under consumer leases
Division 7--Changes to obligations under consumer leases
Subdivision A--Changes by agreement of parties
177A Changes by agreement
Subdivision B--Changes on grounds of hardship and unjust transactions
177B Changes on grounds of hardship
177C Notice of change
177D Changes by court
177E Lessor may apply for variation of change
177F Court may reopen unjust transactions
177G Orders on reopening of transactions
177H Applications by ASIC
177J Time limit
177K Joinder of parties
Division 8--Repossession, termination and enforcement of consumer leases
Subdivision A--Repossession of goods under consumer lease
178 Notice of repossession
Subdivision B--Termination of consumer lease by lessee
178A Termination before goods have been provided
179 Termination after goods have been provided
179A Statement of amount payable on termination
179B Court may determine amount payable on termination if lessor does not
179C One - off notice to be given the first time a direct debit default occurs
Subdivision C--Enforcement of consumer leases
179D Requirements to be met before lessor can enforce consumer lease against defaulting lessee
179E Defaults may be remedied
179F Effect of hardship notices on enforcement
179G Requirements to be met before lessor can enforce an acceleration clause
179GA Limit on amount that may be recovered if there is default under a consumer lease
Subdivision D--Postponement of enforcement proceedings
179H Postponement of exercise of rights
179J Effect of negotiated postponement
179K Postponement by court
179L Lessor may apply for variation of postponement order
Subdivision E--Enforcement procedures for goods hired under a consumer lease
179M Information as to location of goods hired under a consumer lease
179N Entry to residential property to take possession of goods
179P Court may order entry
179Q Order for possession
Subdivision F--Enforcement expenses
179R Recovery of enforcement expenses
Division 9--Linked lessors and tied consumer leases
Subdivision A--Interpretation and application
179S Linked lessors and tied consumer leases
Subdivision B--Liability of lessors for suppliers' misrepresentations
179T Lessor liable for supplier's misrepresentations about hired goods
Division 10--Conduct relating to consumer leases
179U False or misleading representations
179V Harassment
179VA Canvassing of consumer leases for household goods
179VB Using postal, telegraphic, telephonic or other like services to enter into a consumer lease for an indefinite period
179VC Entering into a consumer lease for an indefinite period in the course of constitutional trade and commerce
Division 11--Other Code provisions applicable to consumer leases
179W Application of certain Code provisions to consumer leases
Part 12--Miscellaneous
Division 1--Tolerances and assumptions
180 Tolerances and assumptions relating to information
181 Tolerances relating to contracts and other documents
182 Regulations
Division 2--Documentary provisions
183 Form of notices
184 Legibility and language
185 Copies of contracts and other documents
185A Records of nominations of persons to occupy reverse mortgaged properties
186 Signing of documents
187 Electronic transactions and documents
Division 3--General provisions
188 Assignment by credit provider
189 Assignment by debtor, mortgagor or guarantor
190 Appropriation of payments
191 Contracting out
192 Indemnities
193 Effect of noncompliance
194 Giving notice or other document
195 Manner of giving notice or other document
196 Date of notice or other document
197 Extensions of time
198 Orders of court
199 Conduct of agents and related matters
Division 4--Provisions relating to offences
200 Offences by officers, agents or employees
201 Offences by corporations
202 Limitations
203 Application of section 4K of the Crimes Act 1914
Division 5--Exemptions from this Code
203A Exemptions by ASIC
203B Exemptions by the regulations
Part 13--Principal definitions
204 Principal definitions
Part 14--Miscellaneous provisions relating to interpretation
Division 1--Preliminary
205 Displacement of Part by contrary intention
Division 2--General
207 References to particular Acts and to enactments
208 Compliance with forms
Division 3--Terms and references
209 Provisions relating to defined terms and gender and number
210 Meaning of may and must etc.
211 Effect of express references to bodies corporate and individuals
212 Reference to certain provisions of Code
213 Reference to provisions of this Code or an Act is inclusive
Division 4--Functions and powers
214 Power to make instrument or decision includes power to amend or repeal
215 Matters for which statutory instruments may make provision
216 Presumption of validity and power to make
217 Exercise of powers between enactment and commencement
Division 5--Distance, time and age
218 Matters relating to distance, time and age
Endnotes
Endnote 1--About the endnotes
Endnote 2--Abbreviation key
Endnote 3--Legislation history
Endnote 4--Amendment history