Credit (Life Insurance Policies as Security for Continuing Credit Contracts) Order 1991 (Qld)

Queensland Subordinate Legislation 1991 No. 100 ————— Credit Act 1987 CREDIT (LIFE INSURANCE POLICIES AS SECURITY FOR CONTINUING CREDIT CONTRACTS) ORDER 1991 Section TABLE OF PROVISIONS Page 1. Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2. Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3. Certain provisions of Act inapplicable . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4. Conditions applicable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5. Repeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Short title 1. This order in council may be cited as the Credit (Life Insurance Policies as Security for Continuing Credit Contracts) Order 1991 . Application 2. This order applies to a continuing credit contract entered into by a life insurance company on the security of a life insurance policy. Certain provisions of Act inapplicable 3. Subject to clause 4— (a) sections 51(2), 61(1)(a) and 62(6)(c) of the Act; and (b) section 63(1) of the Act, to the extent to which that section suspends a credit provider’s right of action in relation to an amount or

2 Credit (Life Insurance Policies as Security for Continuing Credit Contracts) Order 1991 other matter queried by a debtor and any related credit charge; do not have effect in relation to a continuing credit contract to which this order applies. Conditions applicable 4. (1) The continuing credit contract must— (a) give the debtor a right to deduct the amount advanced and any accrued interest from the life policy proceeds on termination or maturity of the policy; and (b) provide for a billing cycle not exceeding 6 months. (2) If under a continuing credit contract the credit provider exercises a right to vary the credit charges under the contract or vary the amount of or abridge the time for payment of the debit balance of the account, the variation does not have effect until— (a) the debtor has been given written notice of the variation; and (b) at least 2 months have elapsed since that notice was given. (3) If— (a) the debtor under a continuing credit contract queries, by a written document given or sent to the credit provider, any amount or other matter (being matter that the debtor reasonably believes is incorrect as to the nature or extent of the debtor’s liability to the credit provider) shown in a statement of account given to the debtor in accordance with section 62 of the Act; and (b) the document contains sufficient detail to enable the credit provider to identify the statement of account; and (c) the document is given or sent to the credit provider before payment under the contract is due in respect of the statement of account; and (d) the credit provider does not satisfy the query; the credit provider must suspend any right of action in relation to an amount or other matter and any related credit charges queried by the debtor until— (e) the debtor has been given written notice of the credit provider’s

3 Credit (Life Insurance Policies as Security for Continuing Credit Contracts) Order 1991 decision in relation to the query; and (f) at least 2 months have elapsed since that notice was given. Repeal 5. CreditOrder No. 13 (Life Insurance Policies as Security for Continuing Credit Contracts) published in the Gazette on 22 December 1990 is repealed. ENDNOTES 1. Made by the Governor in Council on 10 October, 1991 2. Published in the Gazette on 12 October, 1991 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Department of Justice. The State of Queensland 1991