Credit regulation in WA
Laws governing the provision of consumer credit in Western Australia
Laws about credit in Western Australia are defined in two major pieces of legislation (“Acts”), the Consumer Credit (Western Australia) Act 1996 and the Credit (Administration) Act 1984.
The Consumer Credit (Western Australia) Act 1996 implements a uniform, Australia-wide system which governs almost all personal or household credit arrangements. This "Consumer Credit Code" requires businesses offering credit and loan products to ensure that their terms and conditions are fair, to include interest rate comparisons and hardship provisions, and to disclose relevant details in a written contract. (WA’s version of the Code includes a few minor alterations to this otherwise uniform national standard.) The Code is implemented by all States and Territories as "template legislation", based on an Act originally passed in Queensland in 1994. Any alterations to the Code must be approved by WA's parliament and printed as an Order from the Governor in the Western Australian Government Gazette before becoming law in this State.
WA’s Credit (Administration) Act 1984 requires that businesses or institutions other than the Crown, banks, building societies, credit unions, insurers (when the credit is incidental to the insurance), pawnbrokers and pastoral finance companies must hold a Credit Provider's Licence, which in turn ensures that they meet certain minimum conditions and are subject to annual review.
The Consumer Credit Code and the licensing of credit providers are discussed in additional detail elsewhere on this website.