The Consumer Credit Code
All about the Australia-wide, uniform Consumer Credit Code
In 2003, WA's laws were changed to bring them into line with a national standard called the "Consumer Credit Code". WA's version of the Code is called the Consumer Credit (Western Australia) Code, and it differs from the otherwise uniform national Code in only a few minor respects.
The Code governs most but not all personal, domestic and household lending and credit arrangements, setting out a clearly-worded Australia-wide standard which requires credit providers to tell consumers about their rights and obligations, disclose all relevant information in a written contract, not to enter into unfair arrangements and to make allowances for unexpected circumstances.
Because of the complex list of exclusions, it's very important to check the details of the Code yourself (or have your lawyer or financial advisor do so on your behalf) when you're planning to enter into a credit arrangement. For example, the Code covers credit products including:
- mortgages and housing loans but not estate trustees in most circumstances;
- many personal loans, but not loans for business or investment purposes, some short-term loans, or pawnbroking;
- credit cards and formal overdrafts, but not overdrafts which occur without prior arrangement; and
- leasing or hiring arrangements which last for more than four months — unless they're part of an employment package.
The Consumer Credit Code Web site includes more detailed examples of what is covered, and what is not covered, but you should always ensure you receive appropriate advice if you're in any doubt.
In accordance with a provision of the Code, amendments to the Credit (Administration) Act 1984 established a Consumer Credit Fund to receive and make use of court costs awarded to the Commissioner for Consumer Protection and certain other payments from credit providers. The Fund is used to provide counselling services and legal advice to consumers, and to pay for information services and research about consumer credit in WA.
The UCCC Website
You can read more about the code on the Uniform Consumer Credit Code website, including:
- Frequently Asked Questions by Consumers
- Code Principles and Administration
- The Hardship Threshold
- What's New (recent changes to the Code)
The UCCC website also includes a large number of downloadable documents providing a wealth of additional detail about subjects including fringe lending, bill facilities, comparison rates, solicitor lending, e-commerce, balloon payments and interest-free offers.