Consumer Credit Code

The Consumer Credit Code was developed in response to business and consumer concerns as a national initiative to standardise credit practice in Australia.

If you buy goods, services or land now and pay a charge for them later, then you are being provided with credit. You may have borrowed money from a bank, paid for the goods on a credit card or simply owe money to a business. If you pay a business for credit and use it mainly for personal, household or domestic purposes, the Consumer Credit Code will affect you.

The Consumer Credit Code covers a considerably wider range of credit transactions than previous laws. A credit provider is defined as any business which provides finance to purchase goods, services and land or to lease goods. The Consumer Credit Code applies to these credit providers if they charge for the credit and if their customers are individuals or residential strata corporations who use it mostly for personal, household or domestic purposes.

How the Code will Benefit You

The Consumer Credit Code governs all credit transactions taking place in Australia. You have the same standard coverage wherever you live and however you use credit.

The Code not only introduces standardisation, it also presents credit information in a clear and easy to understand format. Credit providers such as banks, building societies, credit unions, finance companies and businesses, must tell you what your rights and obligations are in any credit arrangement. They are required by law to truthfully disclose all relevant information about your arrangement in a written contract, including interest rates, fees, commissions and other information which in the past was often hidden.

While the aim is to prevent many of the credit problems faced by consumers, the Code recognises that it is still important to protect consumers if they get into trouble. If you lose your job or are sick, you can ask to have your contract changed so that you can better meet your repayments. Credit providers are required to be careful not to make contracts with consumers who would find it difficult to meet their repayments. A court can also order changes to a contract if it is considered unjust.

Complaining about the quality of consumer goods and non-financial services

If your complaint is about the quality of goods and non-financial services you have purchased or a registered business name, then the Fair Trading Department or Consumer Affairs Office in your State or Territory may be able to assist you.