A debt that does not have to be paid until some future time. Being allowed to pay later, in the future, for something you are getting now. usually involves someone borrowing money and agreeing to pay it back later with interest, fees or charges. Common forms of credit are home loans, credit cards, store cards and accounts, personal loans and pay-day loans.
Other financial products or services that may be protected by Australian Under the Australian Consumer Law, a person who buys goods or services for less than $40 000 or for personal or home use. credit laws include A document that sets out an agreement between a landlord and a tenant for the renting out of property, or for the use of other personal property such as a car. contracts for the supply of goods, mortgages, guarantees, terms contracts for the sale of land and pawn broking contracts.
Consumer protections under Australian Credit Law
The key consumer credit Statutory rules made by parliament or by bodies the parliament delegates power to, for example a local council or a registration authority. See delegated legislation; statute. is the National Consumer Credit Protection A written law made by parliament. Also called an ‘Act of parliament’, ‘statute’ or legislation. 2009 (Cth) (‘NCCP Act’), the National Consumer Credit Protection Regulations 2010 (Cth) (‘NCCP Regulations’) and the National Credit Code (NCC).
The NCC is very similar to the Uniform Credit Code (‘Old Code’), which was the main consumer credit law before 1 July 2010. The Old Code commenced on 1 November 1996 and still has limited application to some contracts entered into before the NCC commenced (for discussion of transitional arrangements, see ‘What credit contracts are regulated by the NCC?’, below).
In addition, protections in the Australian Securities and Investments Commission Act 2001 (Cth) relating to Something done by a manufacturer or seller that is unfair, dishonest or likely to mislead a consumer when buying goods or services., Behaviour that takes unfair advantage of a vulnerable person in a contract or other transaction. The vulnerability can be due to factors such as poor education, disability, language difficulties or being affected by alcohol. and unfair An agreement that the law will enforce. terms, may also assist consumers of credit (see Chapter 7.2: Consumer protection laws).
Guidance on credit law can be found in the various regulatory guides published by the Australian Securities and Investments Commission (ASIC) (see https://asic.gov.au/rg).
Credit providers may also have obligations under one or more codes of conduct. These include the:
- Banking Guidelines setting out proper practice in an industry or occupation. For example, the franchising code of practice sets out rules for businesses operating under a franchise. Codes can be voluntary or statutory (required by legislation). (‘Banking Code’) (see ‘Banking Code of Practice’ in Chapter 5.10: Unauthorised transactions and ePayments Code). The Banking Code has been held to form part of the contract between a bank and customer (see National Australia Bank Ltd v Rice  VSC 10);
- A restriction attached to ownership of property to secure the repayment of money borrowed. The mortgage stops the owner of the property selling it until they have paid off the debt. and Finance Association of Australia Code of Practice; and
- Customer Owned Banking Code of Practice (prior to 1 January 2014 the Mutual Banking Code of Practice applied).
The Australian Financial Complaints Authority (AFCA) (see ‘Contacts’ at the end of this chapter) provides consumers and small businesses with fair, free and independent dispute resolution for financial complaints. AFCA considers fairness, good industry practice and industry codes, as well as legal principles, in determining disputes (see Chapter 5.10: Unauthorised transactions and ePayments Code).
Readers of this chapter may also be assisted by Chapter 5.2: Are you in Money that is owed by one person or business to another.?; Chapter 5.8: Mortgages, consumer leases and other finance products; Chapter 6.2: Buying or selling a house; Chapter 6.7: Buying a car; and Chapters 7.1 to 7.4, on consumers and contracts.