Not all changes to the existing Credit Code will be deferred from 1 January 2010 to 1 July 2010.

On 14 August 2009 Minister Bowen issued a press release stating that “selected enhancements” to the National Credit Code (NCC) would be deferred from 1 January 2010 to 1 July 2010. The table at the end of the press release lists those specific changes from the UCCC that would apply from the later date – see the final row of the table.

The only obligations being deferred are:

• Application to credit for residential investment properties;
• Introduction of debit default notices;
• Amendments to business purpose declarations;
• Amendments to default notices; and
• New notices in response to application for hardship variations and postponements.

Our understanding, which we have confirmed with a telephone call to Treasury, is that all other changes from the UCCC to the NCC will commence from 1 January 2010 (subject to the passing of the Bill).

The changes that commence on 1 January 2010 are therefore as follows:

• the prohibition on mortgages of essential household property and property used to generate an income by personal exertion;
• the new higher limit ($500,000) for hardship and enforcement relief;
• expansion of documents in which comparison rate information and warning need to be included and deletion of the comparison rates schedule.