1. 9.12 – DISCUSS THE PROVISIONS OF THE CONSUMER CREDIT CODE Kane S. Versteeg s2964333 Tutor: Mr Dilshad Wijayaratne

2. INTRODUCTION  National Credit Code (NCC)  Founded on the Principle Truth of Lending  Regulatory scheme implemented by the Commonwealth Government through ASIC  Applies to all credit and credit providers  Aims to guarantee informational disclosure to consumers  Facilitates informed consumer decision making  Conducted via the legislative scaffold provided  Sets a standard for the credit market

3. NCC BACKGROUND  Proposed by the Commonwealth Government in Jun 2009  National Consumer Credit Protection Act, 2009  Replaced the Uniform Consumer Credit Code on July 1 2010  Incorporates much of the UCCC’s previous provisions  Essentially a strengthened revision of the UCCC  Redesigned to better protect credit consumers

4. CHANGES FROM THE UCCC  National Uniformity  Introduction of default notices  Capping loans to reasonable costs  Disallowing loan refinancing  Consumers required to register in order to increase credit limits  Credit licencing

5. NCC’S KEY PROVISIONS  National uniformity  Clear and concise contractual disclosure of relevant information  Full disclosure of contractual obligations  Balance  Payments  Statement provision  Consumers to be advised of their rights and responsibilities  Facilitating consumer contract change requests  Providers to ensure consumers financial capabilities  Hardship clause

6. IN CONCLUSION  NCC provides consistent national regulation  Successfully reduced uncertain consumer circumstances  Reduced consumer exploitation  Increased informational awareness  Achieved through implementation credit code improvements  Continuous improvements by ASIC and the Commonwealth Government

7. REFERENCES  Asic.gov.au,. (2014). Australian Securities and Investments Commission - Consumer-Credit-Code. Retrieved 12 October 2014, from http://www.asic.gov.au/asic/asic.nsf/byheadline/Consumer-Credit-Code  Doran, B. (2014). Topic 9 - Regulation of Financial Institutions. Lecture, Griffith University Nathan Campus. Wiley and Sons Australia.  Kidwell, D. (2014). Financial markets, institutions and money. Milton, Qld.: John.  Moneysmart.gov.au,. (2014). Consumer credit regulation | MoneySmart by ASIC. Retrieved 15 October 2014, from https://www.moneysmart.gov.au/borrowing-and-credit/consumer-credit- regulation