Page 4935 - Week 15 - Thursday, 8 December 1994

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .

THE LEGISLATION ONLY APPLIES TO CREDIT GIVEN TO NATURAL PERSONS, UNLESS THE DEBTOR IS A STRATA CORPORATION. ALSO, A CHARGE MUST BE MADE FOR THE CREDIT, AND IT MUST BE PROVIDED BY A CREDIT PROVIDER AS PART OF ITS BUSINESS. THE CREDIT MUST BE PROVIDED, OR INTENDED TO BE PROVIDED, WHOLLY OR PREDOMINANTLY FOR PERSONAL, DOMESTIC OR HOUSEHOLD PURPOSES. A PREDOMINANT PURPOSE IS DEFINED TO INCLUDE A PURPOSE FOR WHICH MORE THAN ONE HALF OF THE CREDIT IS INTENDED TO BE USED, OR IF THE CREDIT IS INTENDED TO BE USED TO OBTAIN GOODS AND SERVICES FOR DIFFERENT PURPOSES, THE PURPOSE FOR WHICH THE GOODS OR SERVICES ARE INTENDED TO BE MOST USED. IN THE CASE OF CREDIT USED TO PURCHASE A VEHICLE USED PARTLY FOR PERSONAL AND PARTLY FOR BUSINESS ACTIVITIES, IF THE VEHICLE IS MOSTLY USED FOR BUSINESS PURPOSES THE TRANSACTION IS NOT REGULATED BY THE CODE, WHEREAS IF THE VEHICLE IS MOSTLY USED FOR PERSONAL PURPOSES IT IS REGULATED.

A NUMBER OF EXCEPTIONS ARE ALSO CONTAINED IN THE LEGISLATION AND ARE SET OUT IN CLAUSE 7 OF THE CODE. THE EXCEPTIONS ESSENTIALLY MIRROR THOSE WHICH ARE CURRENTLY PROVIDED BY THE CREDIT ACT. ONE OF THE KEY ELEMENTS OF THE CONSUMER CREDIT CODE IS TO ENSURE THAT THERE IS TRUTH IN LENDING. THIS MEANS THAT A CONSUMER CAN MAKE AN INFORMED CHOICE BETWEEN CREDIT PROVIDERS AS TO THE NATURE OF THE CREDIT BEING OFFERED, AS WELL AS THE COMPARATIVE COSTS BETWEEN CREDIT PROVIDERS.

4935

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .