Consumer Credit (Administration) (Amendment) Act 1998 (ACT)

The Consumer Credit (Administration) (Amendment) Act 1998 was enacted by the Legislative Assembly of the Australian Capital Territory to amend the Consumer Credit (Administration) Act 1996. The Act introduces new civil penalty provisions and modifies existing powers to obtain information and documents. The Act is relevant to credit providers and finance brokers who may have their registration suspended or cancelled and subsequently provide consumer credit or enter into finance broking contracts in breach of the suspension or cancellation.

The court was required to interpret the new provisions introduced by the Consumer Credit (Administration) (Amendment) Act 1998. The primary issue was whether the debtor is entirely relieved from liability to pay any amount under the credit contract or finance broking contract if the credit provider or finance broker provides services while their registration is suspended or cancelled. A secondary issue was whether the debtor could recover amounts already paid under the contract from the credit provider or finance broker.

The court held that the new provisions of the Act provide that debtors are not liable to pay any amount under a credit contract or finance broking contract if the provider or broker provides services while their registration is suspended or cancelled. The court found that the plain language of the provisions indicates that the debtor's liability is entirely discharged, and the debtor can recover any amounts already paid from the credit provider or finance broker. The court also noted that the Act does not affect any liability of a person to be convicted of an offence.

The court's interpretation of the Act means that debtors are not liable to pay any amount under a credit contract or finance broking contract if the provider or broker provides services while their registration is suspended or cancelled. The debtor can recover any amounts already paid from the credit provider or finance broker. The court's decision provides clarity for debtors and credit providers or finance brokers in the event of a breach of the suspension or cancellation of registration.