National Consumer Credit Protection Amendment Regulation 2013 (No. 1) was registered on 3 April 2013.
This regulation:
- Provides transitional arrangements to comply with the new hardship procedures introduced in the Consumer Credit Legislation Amendment (Enhancements) Act 2012. The Regulation provides a transitional exemption until 1 March 2014 for credit providers and lessors from the obligation of recording the fact that the credit provider and debtor have agreed to change the contract in a hardship variation.
- Introduces an exemption from the requirement to give written notice where the credit provider or lessor has agreed to any arrangement that defers or reduces the obligations of a debtor for a period of no more than 90 days.
- Prescribes new forms to be sent to consumers by credit providers and lessors following default by a consumer and transitional arrangements for use of those forms.
The new forms are:
• Form 11A – to be provided by a credit provider where a consumer has arranged to make a payment under a contract by direct debit and there has been a default in payment.
• Form 12A – to be provided by a credit provider where a debtor has defaulted in respect of their obligations under the contract.
• Form 18 – to be provided by a lessor where a consumer has arranged to make a payment under a contract by direct debit and there has been a default in payment.
• Form 18A – to be provided by a lessor where a lessee has defaulted in respect of their obligations under the contract.
The Regulations make transitional arrangements for the sending of default notices as follows:
• If the credit contract was entered into before 1 March 2013, and the notice is given on or after 1 March 2013 – the credit provider can send either the existing notices (Forms 11 and 12) or the new notices (Forms 11A and 12A).
• If the credit contract was entered into on or after 1 March 2013, and the notice is given before 1 December 2013 – the credit provider can also send either the existing notices (Forms 11 and 12) or the new notices (Forms 11A and 12A).
• If the credit contract was entered into on or after 1 March 2013, and the notice is given on or after 1 December 2013 – the credit provider can only send the new notices (Forms 11A and 12A).
