The proposed NCCP amendments

by 01 May 2012

 

Summary of proposal

Suggested commencement date

New hardship provisions to make it easier for borrowers to apply for hardship relief.  Currently hardship applications apply when the credit amount is $500K or less, but that limit will no longer apply

1 March 2013

A prohibition on beginning enforcement action while a hardship application is being heard and for 14 days after responding to a postponement of enforcement application

1 March 2013

Courts can make orders to address unfair or dishonest conduct by finance brokers, but any such orders will not ordinarily affect the underlying loan or lease contract

1 March 2013

Restrictions on the use of ‘independent’, ‘impartial’, ‘unbiased’, ‘financial counsellor’, and ‘financial counselling’ by brokers, subject to exceptions when truly independent

1 March 2013

Prescribed notice to be given to borrowers/lessees and employers if a payment direction is given to an employer to collect default payments

1 March 2013

If a credit provider collects a third party fee which is unascertainable and the actual fee is less than the amount collected, the excess must be refunded or credited to the borrower

1 March 2013

If a credit provider collects a third party fee which is unascertainable and the actual fee is less than the amount collected, the excess must be refunded or credited to the borrower

1 March 2013

Extend the time for giving direct debit default notices from 10 business days to 14 days

1 March 2013

New requirements for reverse mortgages. (Some provisions start on 1 July 2012)

1 March 2013

No negative equity guarantee for reverse mortgages and extra requirements for enforcement

1 July 2013

Minor amendments to s88 (default notices)  

1 March 2013

Create a new regime for ‘small amount credit contracts’ of $2,000 or less for terms of two years or less

1 March 2013

Impose an interest rate cap for credit contracts, with a separate regime for small amount credit contracts

TBA

Amend the NCC so that consumer leases are regulated more like regulated loans

1 March 2013

 Source: Gadens Lawyers

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