9.12 – DISCUSS THE PROVISIONS OF THE CONSUMER CREDIT CODEKane S. Versteeg s2964333

Tutor: Mr Dilshad Wijayaratne

INTRODUCTION National Credit Code (NCC) Founded on the Principle Truth of

Lending Regulatory scheme implemented by

the Commonwealth Government through ASIC

Applies to all credit and credit providers Aims to guarantee informational

disclosure to consumers Facilitates informed consumer decision making Conducted via the legislative scaffold provided Sets a standard for the credit market

NCC BACKGROUND

Proposed by the Commonwealth Government in Jun 2009 National Consumer Credit Protection Act, 2009

Replaced the Uniform Consumer Credit Code on July 1 2010

Incorporates much of the UCCC’s previous provisions

Essentially a strengthened revision of the UCCC Redesigned to better protect credit consumers

CHANGES FROM THE UCCC

National Uniformity Introduction of default notices Capping loans to reasonable costs Disallowing loan refinancing Consumers required to register in order to

increase credit limits Credit licencing

NCC’S KEY PROVISIONS

National uniformity Clear and concise contractual disclosure of relevant

information Full disclosure of contractual obligations

Balance Payments Statement provision

Consumers to be advised of their rights and responsibilities Facilitating consumer contract change requests Providers to ensure consumers financial capabilities Hardship clause

IN CONCLUSION

NCC provides consistent national regulation Successfully reduced uncertain consumer

circumstances Reduced consumer exploitation Increased informational awareness Achieved through implementation credit code

improvements Continuous improvements by ASIC and the

Commonwealth Government

REFERENCES

Asic.gov.au,. (2014). Australian Securities and Investments Commission - Consumer-Credit-Code. Retrieved 12 October 2014, from http://www.asic.gov.au/asic/asic.nsf/byheadline/Consumer-Credit-Code

Doran, B. (2014). Topic 9 - Regulation of Financial Institutions. Lecture, Griffith University Nathan Campus. Wiley and Sons Australia.

Kidwell, D. (2014). Financial markets, institutions and money. Milton, Qld.: John.

Moneysmart.gov.au,. (2014). Consumer credit regulation | MoneySmart by ASIC. Retrieved 15 October 2014, from https://www.moneysmart.gov.au/borrowing-and-credit/consumer-credit-regulation