27 May 2010

On 1 July 2010 the Australian Securities and Investment Commission (ASIC) will take over the regulation of consumer credit and finance broking under the National Consumer Credit Protection Act 2009 (National Credit Act).

National Credit Act

The National Credit Act will replace state and territory-based legislation and regulate products such as home loans, personal loans, credit cards, consumer leases, overdrafts, line of credit account and some other financial products and services.

The National Credit Act will replace the Consumer Credit (NSW) Code on 1 July 2010 and Consumer Credit Administration Act 1995 on 1 January 2011.

Transitional provisions

Consumer Credit Code

The CTTT will continue to hear and determine applications under the Consumer Credit (NSW) Code received prior to 1 July 2010 under transitional provisions.

After 1 July 2010, any application received under the Consumer Credit (NSW) Code will be returned to the applicant with information about ASIC which manages external dispute resolution (EDR) schemes for consumers.

Consumer Credit Administration Act 1995

The CTTT will continue to deal with finance broking disputes under the Consumer Credit Administration Act 1995 until 1 January 2011 when this legislation will be replaced by the National Credit Act.  Other responsible lending obligations including disclosure requirements such as upfront disclosure of broker fees and charges will also come into effect on 1 January 2011.

New South Wales will continue to impose its maximum annual percentage rates and disputes will continue to be dealt with by the CTTT until 1 July 2011 when it will be transferred to the Commonwealth. 

Continuing jurisdiction for the CTTT

The CTTT will continue to deal with disputes under the Credit Act 1984 and Credit (Home Finance Contracts) Act 1984 which predate the Consumer Credit (NSW) Code.  However, it is unlikely that many of these contracts are still in force.

Further information

For further details about the National Credit Code visit the ASIC website or Commonwealth Treasury Consumer Credit website.

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