Consumer Credit Amendment Regulation (No. 1) 1996 (Qld)

Queensland Subordinate Legislation 1996 No. 128 Consumer Credit (Queensland) Act 1994 CONSUMER CREDIT AMENDMENT REGULATION (No. 1) 1996 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Replacement of s 31 (Proportionate rebate of consumer credit insurance premium) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 31 Proportionate rebate of consumer credit insurance premium . . . . . . 3 4 Amendment of s 36 (Tolerances relating to disclosures) . . . . . . . . . . . . . . . 3 5 Replacement of s 38 (Additional assumptions relating to interest charges and repayments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 38 Additional assumptions relating to disclosures . . . . . . . . . . . . . . . . . 4 38A Contracts linked to loan account offset arrangements . . . . . . . . . . . 5 6 Insertion of new pt 11, div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Division 1—General 40A Transitional provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 7 Amendment of s 41 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 8 Insertion of new div heading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Division 2—Savings and transitional provisions generally 9 Insertion of new pt 11, div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Division 3—Special transitional provisions . . . . . . . . . . . . . . . . . . . . . . . . . 6 58 Credit fees and charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 59 Matters to be included in contract document . . . . . . . . . . . . . . . . . . 7

2 Consumer Credit Amendment (No. 1) No. 128, 1996 60 Copies of contracts and mortgages for debtors . . . . . . . . . . . . . . . . . 7 61 End of day for purposes of credit contracts . . . . . . . . . . . . . . . . . . . . 8 62 Early debit of interest charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 63 Dating and adjustment of debits and credits in accounts . . . . . . . . . 8 64 Statements of account for multiple facility contracts . . . . . . . . . . . . 9 65 Requirements for statements of amounts owing . . . . . . . . . . . . . . . . 10 66 Particulars of interest rate changes . . . . . . . . . . . . . . . . . . . . . . . . . . 10 67 Particulars of repayment changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 68 Particulars of credit fees and charges changes . . . . . . . . . . . . . . . . . 11 69 Particulars of unilateral changes by credit provider . . . . . . . . . . . . . 11 70 Agreed changes to contracts, mortgages and guarantees . . . . . . . . . 11 71 Particulars of changes on grounds of hardship . . . . . . . . . . . . . . . . . . 12 72 Key requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 73 Termination of insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . 13 74 Application of Code to related insurance contracts . . . . . . . . . . . . . 13 10 Amendment of sch (Forms) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

s1 3 s4 Consumer Credit Amendment (No. 1) No. 128, 1996 ˙ Short title 1. This regulation may be cited as the Consumer Credit Amendment Regulation (No. 1) 1996 . ˙ Regulation amended 2. This regulation amends the Consumer Credit Regulation 1995 . ˙ Replacement of s 31 (Proportionate rebate of consumer credit insurance premium) 3. Section 31— omit, insert — ˙ ‘ Proportionate rebate of consumer credit insurance premium ‘ 31. For the purposes of section 138(4) of the Code, the manner of calculating the proportionate rebate of premium is by applying the following formula— Y = PS (S+1) T (T+1) where— “Y” is the amount of the rebate of premium. “P” is the amount of the premium paid (not including any amount payable in respect of a government charge). “S” is the number of whole months in the unexpired portion of the period for which insurance was agreed to be provided. “T” is the number of whole months for which insurance was agreed to be provided.’. ˙ Amendment of s 36 (Tolerances relating to disclosures) 4. Section 36— insert —

s5 4 s5 Consumer Credit Amendment (No. 1) No. 128, 1996 ‘ (4) For the purposes of section 158(1)(a) of the Code, information disclosed about any— (a) interest charges or repayments payable; or (b) credit fees or charges that are government fees or government charges; is within permissible tolerances if it overstates the amount or amounts payable. ‘ (5) However, any such overstatement does not affect the amounts payable under the credit contract and accordingly is not within permissible tolerances for the purposes of section 159 of the Code (unless it is within permissible tolerances because of section 37 of this regulation).’. ˙ Replacement of s 38 (Additional assumptions relating to interest charges and repayments) 5. Section 38— omit, insert — ˙ ‘ Additional assumptions relating to disclosures ‘ 38.(1) Disclosures for the purposes of the Code relating to interest charges, repayments and fees and charges may, if any repayment is to be made or interest charge or fee or charge is to be paid or debited on a particular day, be made on the assumption that the repayment will be made or the interest charge or fee or charge paid or debited on that day even though it is not a business day and the contract provides that the repayment is to be made or the interest charge or fee or charge paid or debited on the next preceding or succeeding business day. ‘ (2) Disclosures for the purposes of the Code relating to repayments and interest charges may also be made on the assumption that the amount of credit will be provided on the date— (a) nominated for that purpose in the pre-contractual statement given under section 14 of the Code; or (b) if no date is so nominated—on the relevant date of disclosure set out in the financial statement as referred to in section 13(8) of this regulation; or

s6 5 s6 Consumer Credit Amendment (No. 1) No. 128, 1996 (c) if no date is so set out—the date on which the statement is given to the debtor. ‘ (3) Subsection (2) does not apply to— (a) a continuing credit contract; or (b) a credit contract under which credit is provided progressively and the dates on which the credit is to be provided are not ascertainable. ˙ ‘ Contracts linked to loan account offset arrangements ‘ 38A.(1) Disclosures for the purposes of the Code relating to a credit contract linked to a loan account offset arrangement may be made on the assumption that the contract is not linked to the arrangement. ‘ (2) If the amount of interest charges under a credit contract is affected by a loan account offset arrangement during a statement period— (a) the statement of account is to disclose the net interest charge debited under the credit contract during the statement period; and (b) any such statement of account must also show the amount by which the net interest differs from the interest charge that would otherwise have been payable under the credit contract if the interest charge had not been affected by the loan account offset arrangement.’. ˙ Insertion of new pt 11, div 1 6. Part 11, before section 41— insert— ‘ Division 1—General ˙ ‘ Transitional provisions ‘ 40A. This part is made pursuant to section 11 of the Consumer Credit(Queensland) Act 1994 and has effect despite any provision of the Code.’.

s7 6 s9 Consumer Credit Amendment (No. 1) No. 128, 1996 ˙ Amendment of s 41 (Definitions) 7. Section 41, definition “pre-Code credit contract” , ‘provision of credit’— omit, insert — ‘provision of credit of a kind to which the Code applies’. ˙ Insertion of new div heading 8. After section 41— insert — ‘ Division 2—Savings and transitional provisions generally ’. ˙ Insertion of new pt 11, div 3 9. After section 57— insert — ´ ‘ Division 3—Special transitional provisions ˙ ‘ Credit fees and charges ‘ 58.(1) Paragraph (b) of the definition of “credit fees and charges” in schedule 1 to the Code does not apply to a fee or charge referred to in subsection (5). ‘ (2) For the purposes of the Code, credit fees and charges do not include any fees or charges that are payable to or by a credit provider in connection with a credit contract in connection with which both credit and debit facilities are available if the fees or charges would be payable even if credit facilities were not available. ‘ (3) Despite subsection (2), an annual fee or charge in connection with a continuing credit contract under which credit is ordinarily obtained only by the use of a card is a credit fee or charge for the purposes of the Code. ‘ (4) For the purposes of the Code, enforcement expenses are not credit fees and charges. ‘ (5) This section applies to a fee or charge payable in connection with—

s9 7 s9 Consumer Credit Amendment (No. 1) No. 128, 1996 (a) a pre-Code credit contract to which the Code applies; and (b) any other credit contract entered into not later than 12 months after the commencement of the Code. ˙ ‘ Matters to be included in contract document ‘ 59.(1) The amount of credit required under section 15(B) of the Code to be included in the contract document does not include— (a) any interest charge under the contract; or (b) any fee or charge that— (i) is to be or may be debited to the debtor’s account after credit is first provided under the contract; and (ii) is not payable in connection with the making of the contract or the making of a mortgage or guarantee related to the contract. ‘ (2) The requirement under section 15(F)(a)(ii) of the Code that a contract document contain the total amount of the repayments applies to a credit contract only if the contract would, on the assumptions in sections 158 and 160 of the Code, be paid out within 7 years of the date on which credit is first provided under the contract. ‘ (3) The prescribed information to be contained in the pre-contractual statement relating to section 15(B) and (F)(a)(ii) of the Code is the information under those requirements as changed by this section. ‘ (4) This section applies to credit contracts entered into not later than 12 months after the commencement of the Code. ˙ ‘ Copies of contracts and mortgages for debtors ‘ 60.(1) Section 18(2) of the Code does not apply if, when the credit provider gives the debtor a copy of the contract document to sign and return to the credit provider, the credit provider gives the debtor a copy of the contract document signed by the credit provider to keep. ‘ (2) Section 39 of the Code does not apply if, when the credit provider gives the debtor a copy of the mortgage document to sign and return to the credit provider, the credit provider gives the debtor a copy of the mortgage

s9 8 s9 Consumer Credit Amendment (No. 1) No. 128, 1996 document to keep. ‘ (3) This section applies to credit contracts and mortgages entered into not later than 12 months after the commencement of the Code. ˙ ‘ End of day for purposes of credit contracts ‘ 61.(1) Section 25(2) of the Code extends to specifying, for any purpose or purposes under a credit contract, when a day ends. Different times may be specified for different purposes. ‘ (2) This section applies— (a) to pre-Code credit contracts to which section 25(2) of the Code applies; and (b) to any other credit contracts entered into not later than 12 months after the commencement of the Code. ˙ ‘ Early debit of interest charges ‘ 62.(1) Section 27 of the Code does not apply to the debit of an interest charge under a credit contract before the end of the period to which the charge applies if— (a) the charge is debited on the last day of the period; and (b) the amount debited is not treated by the credit provider as part of the unpaid daily balance for that day for the purpose of calculating interest charges under the contract. ‘ (2) This section applies to debits made not later than 12 months after the commencement of the Code. ˙ ‘ Dating and adjustment of debits and credits in accounts ‘ 63.(1) Except as provided by this section, for the purposes of the Code (including section 27) and the credit contract, a debit or a credit made by a credit provider to a debtor’s account is taken to have been made, and has effect, on the date assigned to the debit or credit, not on the date on which it is processed. ‘ (2) Except as provided by this section, a credit provider may

s9 9 s9 Consumer Credit Amendment (No. 1) No. 128, 1996 subsequently adjust debits or credits to a debtor’s account, and the account balances, so as to accurately reflect the legal obligations of the debtor and the credit provider. ‘ (3) However, subsections (1) and (2) do not permit a debit or a credit to be assigned a date other than the date on which it is processed, or the subsequent adjustment of a debit or credit or account balance, if— (a) the assignment or adjustment is not consistent with the credit contract; or (b) the adjustment results in an interest charge that is more than the maximum amount permitted by the Code, as calculated on the basis of debits or credits to a debtor’s account consistent with the credit contract; or (c) the assignment or adjustment results in a contravention of section 24 of the Code; or (d) the assignment of the date on which an interest charge is taken to be debited results in a debit being taken to be done before a time permitted under the Code or this regulation. ‘ (4) For the purposes of section 32(K) of the Code, a statement of account must set out any adjustments made under this section during the statement period. ‘ (5) This section applies to adjustments of, and debits and credits to, debtors’ accounts made not later than 12 months after the commencement of the Code. ‘ (6) This section does not affect the operation of section 18 of this regulation. ‘ (7) An adjustment by a credit provider under subsection (2) does not affect any liability of a credit provider under part 6 of the Code. ˙ ‘ Statements of account for multiple facility contracts ‘ 64.(1) Sections 31 and 32 of the Code apply so that a separate statement of account may be, but is not required to be, given in respect of any or all credit facilities provided under a credit contract. ‘ (2) This section applies—

s 9 10 s 9 Consumer Credit Amendment (No. 1) No. 128, 1996 (a) to pre-Code credit contracts to which sections 31 and 32 of the Code apply; and (b) to any other credit contracts entered into not later than 12 months after the commencement of the Code. ˙ ‘ Requirements for statements of amounts owing ‘ 65.(1) A credit provider is not required under section 34(1)(c) or (d) of the Code to provide information in a statement under that section about amounts which are not then currently overdue or payable. ‘ (2) This section applies— (a) to pre-Code credit contracts to which section 34 of the Code applies; and (b) to any other credit contracts entered into not later than 12 months after the commencement of the Code. ˙ ‘ Particulars of interest rate changes ‘ 66.(1) A credit provider is only required under section 59(2) of the Code to give the debtor particulars of the new rate or rates or, if a rate is determined by referring to a reference rate, the new reference rate. ‘ (2) Subsection (1) applies only if the credit provider— (a) makes it clear to the debtor that the rate has changed; or (b) issues to the debtor a new set of terms and conditions relating to the credit contract. ‘ (3) This section applies to a change that occurs not later than 12 months after the commencement of the Code. ˙ ‘ Particulars of repayment changes ‘ 67.(1) A credit provider is only required under section 60(1)(a) and (2) of the Code to give the debtor particulars of the matter as changed. ‘ (2) Subsection (1) applies only if the credit provider— (a) makes it clear to the debtor that the matter has changed; or

s 9 11 s 9 Consumer Credit Amendment (No. 1) No. 128, 1996 (b) issues to the debtor a new set of terms and conditions relating to the credit contract. ‘ (3) A credit provider must give the written notice required under section 60(1) of the Code not later than 20 days before the change takes effect. ‘ (4) This section applies to a change that occurs not later than 12 months after the commencement of the Code. ˙ ‘ Particulars of credit fees and charges changes ‘ 68.(1) A credit provider is only required under section 61(1)(a), (2) and (3) of the Code to give the debtor particulars of the matter as changed. ‘ (2) Subsection (1) applies only if the credit provider— (a) makes it clear to the debtor that the matter has changed; or (b) issues to the debtor a new set of terms and conditions relating to the credit contract. ‘ (3) This section applies to a change that occurs not later than 12 months after the commencement of the Code. ˙ ‘ Particulars of unilateral changes by credit provider ‘ 69.(1) A credit provider is only required under section 63(1)(a) and (2) of the Code to give the other party particulars of the matter as changed. ‘ (2) Subsection (1) applies only if the credit provider— (a) makes it clear to the debtor that the matter has changed; or (b) issues to the debtor a new set of terms and conditions relating to the credit contract. ‘ (3) This section applies to a change that occurs not later than 12 months after the commencement of the Code. ˙ ‘ Agreed changes to contracts, mortgages and guarantees ‘ 70.(1) A credit provider is only required under section 65(1)(a) of the Code to give the other party particulars of the matter as changed.

s 9 12 s 9 Consumer Credit Amendment (No. 1) No. 128, 1996 ‘ (2) Subsection (1) applies only if the credit provider— (a) makes it clear to the debtor that the matter has changed; or (b) issues to the debtor a new set of terms and conditions relating to the credit contract. ‘ (3) The information required to be given under section 22(c) of this regulation, and section 65(3) of the Code, in relation to the amount by which the amount of credit is increased by agreement, does not include— (a) any interest charge under the contract; or (b) any fee or charge that— (i) is to be or may be debited to the debtor’s account after credit is first provided under the agreement to increase the amount of credit; and (ii) is not payable in connection with the making of the agreement or the making of the mortgage or guarantee related to the agreement. ‘ (4) The requirements under section 22(h) and (i) of this regulation, and section 65(3) of the Code, to include the total amount of repayments yet to be made in information provided apply only if the credit contract would, on the assumptions in sections 158 and 160 of the Code, be paid out within 7 years of the date of the notice. ‘ (5) This section applies to a change that occurs not later than 12 months after the commencement of the Code. ˙ ‘ Particulars of changes on grounds of hardship ‘ 71.(1) A credit provider is only required under section 67 of the Code to give the debtor, and any guarantor, particulars of the matter as changed. ‘ (2) Subsection (1) applies only if the credit provider— (a) makes it clear to the debtor that the matter has changed; or (b) issues to the debtor a new set of terms and conditions relating to the credit contract. ‘ (3) This section applies to a change that occurs not later than 12 months after the commencement of the Code.

s 10 13 s 10 Consumer Credit Amendment (No. 1) No. 128, 1996 ˙ ‘ Key requirements ‘ 72.(1) Section 100 of the Code applies so that any requirements of section 15, 21, 32 or 33 of the Code that are modified by this regulation are taken to be requirements of the Code (where applicable) for the purposes of section 100 of the Code. ‘ (2) Section 100(1)(e) and (i) and (2)(d) and (f) of the Code apply so that the key requirements referred to in those provisions do not apply to credit fees and charges that are government fees or government charges. ‘ (3) This section applies— (a) to pre-Code credit contracts to which section 100 of the Code applies; and (b) to any other credit contracts entered into not later than 12 months after the commencement of the Code. ˙ ‘ Termination of insurance contracts ‘ 73. Section 125 of the Code does not apply to a sale contract if the contract is a contract of consumer credit insurance cancelled under section 64A of the Insurance Contracts Act 1984 (Cwlth) not later than 12 months after the commencement of the Code. ˙ ‘ Application of Code to related insurance contracts ‘ 74.(1) The Code does not apply to a contract for insurance over mortgaged property in connection with a credit contract unless the property is mortgaged to secure obligations under the credit contract. ‘ (2) The Code does not apply to a contract for consumer credit insurance in connection with a credit contract unless the contract for consumer credit insurance insures the obligations of the debtor under the credit contract. ‘ (3) This section applies to contracts of insurance entered into not later than 12 months after the commencement of the Code.’. ˙ Amendment of sch (Forms) 10.(1) Schedule, form 2, item 2, second paragraph, at the end—

s 10 14 s 10 Consumer Credit Amendment (No. 1) No. 128, 1996 insert — ‘The rule will also not apply if, when the credit provider gives you a copy of the contract document to sign and return to the credit provider, you are also given a copy of the contract document signed by the credit provider to keep.’. (2) Schedule, form 2, item 8, ‘• a change in repayments; or’— omit. (3) Schedule, form 2, item 16, at the end— insert — ‘However, you need not be given a copy if, when the credit provider gives you a copy of the mortgage document to sign and return to the credit provider, you are also given a copy of the mortgage document to keep.’. ENDNOTES 1. Made by the Governor in Council on 13 June 1996. 2. Notified in the gazette on 14 June 1996. 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Office of Consumer Affairs. © State of Queensland 1996