Page 4936 - Week 15 - Thursday, 8 December 1994

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

THE LEGISLATION SETS OUT IN SOME DETAIL THE REQUIREMENTS FOR CREDIT CONTRACTS, INCLUDING BASIC MATTERS LIKE PRECONTRACTUAL DISCLOSURE, THE FACT THAT CREDIT CONTRACTS MUST BE IN WRITING AND THAT THEY MUST CONTAIN CERTAIN KEY MATERIAL DESIGNED TO ENSURE THAT THERE IS TRUTH IN LENDING. KEY DISCLOSURES ARE OUTLINED IN CLAUSE 15 OF THE CODE, AND DEAL WITH CRITICAL ISSUES SUCH AS THE ANNUAL PERCENTAGE RATE OR RATES, THE AMOUNT AND NUMBER OF REPAYMENTS, THE CALCULATION AND TOTAL AMOUNT OF INTEREST CHARGES, CREDIT FEES AND CHARGES, DEFAULT RATES, ENFORCEMENT EXPENSES, COMMISSIONS, INSURANCE FINANCED BY THE CONTRACT AND OTHER CRITICAL INFORMATION.

CLAUSE 16 PROVIDES THAT THE CONTRACT MUST CONFORM TO THE REQUIREMENTS OF THE REGULATIONS AS TO ITS FORM AND THE WAY IT IS EXPRESSED. THIS IS INTENDED TO ENSURE THAT DOCUMENTS ARE AS FAR AS POSSIBLE USER FRIENDLY, AND THAT CONSUMERS, WHEN ENTERING INTO TRANSACTIONS, UNDERSTAND THE EXTENT OF THEIR RIGHTS AND OBLIGATIONS.

A COPY OF THE CONTRACT IS REQUIRED TO BE GIVEN TO THE DEBTOR AND IT IS POSSIBLE FOR A CONSUMER TO TERMINATE A CONTRACT EVEN THOUGH THE CONTRACT HAS BEEN ENTERED INTO, PROVIDED THAT NO CREDIT HAS BEEN OBTAINED OR ATTEMPTED TO BE OBTAINED UNDER THE CONTRACT.

4936

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