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This is a Bill, not an Act. For current law, see the Acts databases.


CONSUMER CREDIT (QUEENSLAND) AMENDMENT BILL 2002

      Queensland




 CONSUMER CREDIT
   (QUEENSLAND)
AMENDMENT BILL 2002

 


 

 

Queensland CONSUMER CREDIT (QUEENSLAND) AMENDMENT BILL 2002 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 Commencement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 Code amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 Insertion of new s 113A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 113A Time limit for application for orders under this Division . . . . . . . . . 4 5 Amendment of s 140 (Advertising). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6 Insertion of new part 9A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 PART 9A--COMPARISON RATES Division 1--Preliminary 146A Object of Part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 146B Part not to apply to continuing credit contracts . . . . . . . . . . . . . . . . . 5 146C Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 146D Expiry of Part. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Division 2--Comparison rate in credit advertising 146E Comparison rate mandatory in advertisements containing annual percentage rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 146F The relevant comparison rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 146G Information about comparison rate . . . . . . . . . . . . . . . . . . . . . . . . . . 7 146H Warning about comparison rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 146I Other requirements for comparison rate . . . . . . . . . . . . . . . . . . . . . . 8 Division 3--Comparison rate schedules 146J The comparison rate schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 146K When comparison rate schedule to be provided to consumers . . . . . 9 146L Relevant comparison rate schedule . . . . . . . . . . . . . . . . . . . . . . . . . . 10

 


 

2 Consumer Credit (Queensland) Amendment Bill 2002 146M Comparison rates to be listed in schedule . . . . . . . . . . . . . . . . . . . . . 11 146N Form of comparison rate schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . 11 146O Warning about comparison rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 146P Other requirements for comparison rate schedules . . . . . . . . . . . . . . 12 146Q Offence for noncompliance with this Division . . . . . . . . . . . . . . . . . 13 Division 4--Miscellaneous 146R Calculation of comparison rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 146S Compliance grace period following changes in interest or fees . . . . 13 146T Regulations--exemptions and other matters . . . . . . . . . . . . . . . . . . . 13 7 Amendment of pt 12 (Transitional provision for Consumer Credit (Queensland) Amendment Act 2001) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Division 2--Transitional provision for Consumer Credit (Queensland) Amendment Act 2002 186 Time limits under s 113A for certain civil penalty orders . . . . . . . . . 14

 


 

2002 A BILL FOR An Act to amend the Consumer Credit (Queensland) Act 1994 to make changes to the Consumer Credit Code

 


 

s1 4 s5 Consumer Credit (Queensland) Amendment Bill 2002 The Parliament of Queensland enacts-- 1 1 Short title Clause 2 This Act may be cited as the Consumer Credit (Queensland) Amendment 3 Act 2002. 4 2 Commencement Clause 5 This Act commences on a day to be fixed by proclamation. 6 3 Code amended Clause 7 This Act amends the Consumer Credit Code set out in the appendix to 8 the Consumer Credit (Queensland) Act 1994. 9 4 Insertion of new s 113A Clause 10 Part 6, division 1-- 11 insert-- 12 `113A Time limit for application for orders under this Division 13 `(1) Proceedings under this Division for a declaration of contravention 14 and the imposition of a civil penalty for a contravention may not be brought 15 after 6 years from the day the contravention happened. 16 `(2) Subsection (1) applies despite any Act relating to the limitation of 17 time for commencing actions. 18 `(3) In this section-- 19 "contravention" means contravention of a key requirement.'. 20 5 Amendment of s 140 (Advertising) Clause 21 (1) Section 140(1), after `section'-- 22 insert-- 23 `and, until the expiry of Part 9A, with the provisions of Division 2 of that 24 Part'. 25

 


 

s6 5 s6 Consumer Credit (Queensland) Amendment Bill 2002 (2) At the end of section 140(4)-- 1 insert-- 2 `This subsection does not apply while Part 9A has effect.'. 3 6 Insertion of new part 9A Clause 4 After part 9-- 5 insert-- 6 `PART 9A--COMPARISON RATES 7 `Division 1--Preliminary 8 `146A Object of Part 9 `(1) The object of this Part is to assist consumers to identify the true cost 10 of credit offered by credit providers. 11 `(2) In order to achieve that object, this Part-- 12 (a) makes it mandatory for credit providers to include the 13 comparison rate in advertisements for consumer credit (other 14 than under continuing credit contracts) if an interest rate is 15 advertised; and 16 (b) requires credit providers, linked suppliers and finance brokers to 17 supply consumers with schedules of comparison rates for any 18 such consumer credit. 19 The comparison rate will reflect the total cost of credit arising from 20 interest charges and other prescribed credit fees and charges. 21 `146B Part not to apply to continuing credit contracts 22 `(1) This Part does not apply to advertising or other matters about the 23 provision of credit under continuing credit contracts. 24 `(2) Accordingly, a reference in this Part to the provision of credit (or to 25 a credit contract or related matters) does not include a reference to the 26 provision of credit under a continuing credit contract (or to a continuing 27 credit contract or matters related to such a contract). 28

 


 

s6 6 s6 Consumer Credit (Queensland) Amendment Bill 2002 `146C Definitions 1 `In this Part-- 2 "comparison rate schedule" see section 146J. 3 "consumer credit product" means any form of facility for the provision 4 of credit (other than under a continuing credit contract) provided to 5 debtors by a credit provider. 6 "credit advertisement" means an advertisement in any form or medium 7 that states or implies that credit is available, but (for the avoidance of 8 doubt) does not include-- 9 (a) notices or other documents required or authorised to be given 10 under this Code; or 11 (b) a publication that only lists reference rates. 12 "finance broker" means a person who carries on the business of 13 negotiating, or acting as intermediary to obtain, credit for persons 14 other than the employer or principal of the person so negotiating or 15 acting. 16 "name", of a consumer credit product, means the usual name or 17 description by which the credit provider describes or advertises the 18 product. 19 `146D Expiry of Part 20 `This Part expires on the third anniversary of its commencement. 21 22 Note-- 23 Section 14(3) provides that a credit provider may, before entering into a credit contract, 24 inform the debtor of the comparison rate. Section 140(4) continues (after the expiry of 25 this Part) the provision that an advertisement about the availability of consumer credit 26 may contain the comparison rate. `Division 2--Comparison rate in credit advertising 27 `146E Comparison rate mandatory in advertisements containing 28 annual percentage rate 29 `(1) A credit advertisement must contain the relevant comparison rate in 30 accordance with this Part if it contains an annual percentage rate. 31

 


 

s6 7 s6 Consumer Credit (Queensland) Amendment Bill 2002 `(2) A credit advertisement may contain the relevant comparison rate in 1 accordance with this Part even if it does not contain an annual percentage 2 rate. 3 4 Note-- 5 Section 140(1) makes it an offence (maximum penalty--100 penalty units) if a person 6 publishes a credit advertisement that does not comply with this Division. `146F The relevant comparison rate 7 `(1) The relevant comparison rate for the purposes of section 146E is the 8 comparison rate calculated for whichever of the designated amounts and 9 terms most closely represents the typical amount of credit and term initially 10 provided by the credit provider for the consumer credit product being 11 advertised. 12 `(2) The designated amounts and terms are the amounts and terms 13 prescribed by a regulation for the purposes of this section. 14 `(3) The credit advertisement may contain more than one relevant 15 comparison rate. 16 `146G Information about comparison rate 17 `(1) The credit advertisement must clearly state the name of the 18 consumer credit product, the amount of credit and the term to which each 19 comparison rate applies. 20 `(2) If the comparison rate is calculated for an amount of credit 21 prescribed by a regulation for the purposes of this subsection, the credit 22 advertisement must clearly state-- 23 (a) that the comparison rate is for a secured loan if it has been 24 calculated on the basis that a mortgage or guarantee is taken by 25 the credit provider; or 26 (b) that the comparison rate is for an unsecured loan if it has not 27 been so calculated. 28 The word "secured" or "unsecured" in connection with the amount of 29 credit for which the comparison rate is calculated is a sufficient description 30 for the purposes of this subsection. 31 `(3) The credit advertisement must clearly state that a comparison rate 32 schedule will be available at the premises of the credit provider, finance 33 broker or supplier to which the advertisement relates. 34

 


 

s6 8 s6 Consumer Credit (Queensland) Amendment Bill 2002 `146H Warning about comparison rate 1 `(1) A comparison rate in a credit advertisement must be accompanied 2 by a warning about the accuracy of the comparison rate that is prescribed 3 by a regulation. 4 `(2) If a comparison rate schedule comprises 2 or more documents, a 5 separate warning must be given on each document. 6 `(3) The warning may be given in conjunction with the basis on which 7 the comparison rate is calculated, that is, that the comparison rate is 8 accurate only for the specified amount of credit and specified term. 9 `146I Other requirements for comparison rate 10 `(1) A comparison rate in any credit advertisement must be identified as 11 a comparison rate. 12 `(2) A comparison rate in any credit advertisement must not be less 13 prominent than-- 14 (a) any annual percentage rate stated in the advertisement; and 15 (b) the amount of any repayment stated in the advertisement. 16 `(3) The following applies to credit advertisements on television, the 17 Internet or other electronic display medium-- 18 (a) if the annual percentage rate is in spoken form and not displayed 19 on the screen in text, the comparison rate must also be in spoken 20 form; 21 (b) if the annual percentage rate is displayed on the screen in text, 22 the comparison rate must also be displayed on the screen in text 23 and may be in spoken form; 24 (c) if the comparison rate is in spoken form, the warning and other 25 information may be either in spoken form or displayed on the 26 screen in text; 27 (d) if the comparison rate is displayed on the screen in text, the 28 warning and other information must also be displayed on the 29 screen in text. 30

 


 

s6 9 s6 Consumer Credit (Queensland) Amendment Bill 2002 `Division 3--Comparison rate schedules 1 `146J The comparison rate schedule 2 `The comparison rate schedule is a schedule that lists, in accordance 3 with this Part, comparison rates for consumer credit products of a credit 4 provider. 5 `146K When comparison rate schedule to be provided to consumers 6 `(1) Premises of credit provider. A credit provider is required to display 7 and make available for collection by members of the public copies of the 8 relevant comparison rate schedule at any premises of the credit provider-- 9 (a) at which the credit provider displays or makes available for 10 collection by members of the public copies of documents 11 advertising the consumer credit products of the credit provider; 12 or 13 (b) at which members of the public may lodge applications for credit 14 in person. 15 `(2) Premises of finance broker. A finance broker is required to display 16 and make available for collection by members of the public copies of the 17 relevant comparison rate schedule or schedules at any premises of the 18 finance broker-- 19 (a) at which the finance broker displays or makes available for 20 collection by members of the public copies of documents 21 advertising the consumer credit products of credit providers; or 22 (b) at which members of the public may lodge applications for credit 23 in person. 24 `(3) Premises of linked suppliers. A supplier is required to display and 25 make available for collection by members of the public copies of the 26 relevant comparison rate schedule or schedules at any premises of the 27 supplier-- 28 (a) at which the supplier displays or makes available for collection 29 by members of the public copies of documents advertising the 30 consumer credit products of credit providers who are linked 31 credit providers of the supplier; or 32 (b) at which members of the public may lodge applications for credit 33 in person. 34

 


 

s6 10 s6 Consumer Credit (Queensland) Amendment Bill 2002 1 Note-- 2 Section 117 defines "linked credit provider" for the purposes of the Code. `(4) Internet sites etc. A credit provider, finance broker or supplier who 3 makes material advertising consumer credit products available on an 4 Internet site, or on any other public electronic system, under the control of 5 the credit provider, finance broker or supplier is to ensure that electronic 6 access to the relevant comparison rate schedule is also available to 7 members of the public who access that material. 8 `(5) Provision of credit applications. A credit provider, finance broker 9 or supplier is to ensure that a copy of the relevant comparison rate schedule 10 accompanies any application for credit that is sent or given by the credit 11 provider, finance broker or supplier to any prospective debtor. 12 `146L Relevant comparison rate schedule 13 `(1) The relevant comparison rate schedule or schedules for the purposes 14 of section 146K are as follows-- 15 (a) in the case of the premises of a credit provider--a schedule or 16 schedules for all of the consumer credit products of the credit 17 provider; 18 (b) in the case of the premises of a finance broker--a schedule or 19 schedules for the consumer credit products of each credit 20 provider with which the broker deals (except as provided by 21 subsection (2)); 22 (c) in the case of the premises of a supplier--a schedule or schedules 23 for the consumer credit products of each linked credit provider; 24 (d) in the case of an Internet site or any other public electronic 25 system--a schedule or schedules for the consumer credit product 26 or products of each credit provider concerned; 27 (e) in the case of an application for credit--a schedule or schedules 28 for the consumer credit product or products to which the 29 application relates. 30 `(2) If a finance broker deals with the consumer credit products of more 31 than 6 credit providers, comparison rate schedules are only required to be 32 displayed under section 146K(2) for at least 6 credit providers (one for 33 each of the credit providers with whose products the broker mainly deals). 34

 


 

s6 11 s6 Consumer Credit (Queensland) Amendment Bill 2002 `146M Comparison rates to be listed in schedule 1 `(1) The comparison rates required to be listed in a relevant comparison 2 rate schedule for the purposes of section 146K1 are the comparison rates 3 calculated for each of the designated amounts of credit and terms for the 4 consumer credit product or products concerned. 5 `(2) The designated amounts and terms are the amounts and terms 6 prescribed by a regulation for the purposes of this section. 7 `(3) The comparison rate schedule for any consumer credit product need 8 not list any of the above amounts that are not generally available in 9 connection with that consumer credit product. If an amount is generally 10 available, it is to be listed in the comparison rate schedule whether or not it 11 is generally available for the term prescribed under subsection (2) for that 12 amount. 13 `(4) In the case of a comparison rate that is calculated for an amount of 14 credit prescribed by a regulation for the purposes of this subsection, the 15 comparison rate schedule must clearly state-- 16 (a) that the comparison rate is for a secured loan if it has been 17 calculated on the basis that a mortgage or guarantee is taken by 18 the credit provider; or 19 (b) that the comparison rate is for an unsecured loan if it has not 20 been so calculated. 21 The word "secured" or "unsecured" in connection with the amount of 22 credit for which the comparison rate is calculated is a sufficient description 23 for the purposes of this subsection. 24 `(5) The comparison rate schedule must clearly state-- 25 (a) the name of the consumer credit product, the amount of credit 26 and the term applicable to each comparison rate listed in the 27 schedule; and 28 (b) the annual percentage rate for each such amount of credit and 29 term. 30 `146N Form of comparison rate schedule 31 `(1) A comparison rate schedule is to take the form of-- 32 1 Section 146K (When comparison rate schedule to be provided to consumers)

 


 

s6 12 s6 Consumer Credit (Queensland) Amendment Bill 2002 (a) a printed document (comprising one or more pages); or 1 (b) text displayed on a screen, where access to the schedule is to be 2 made available on an Internet site, or on any other public 3 electronic system. 4 `(2) Comparison rates for different consumer credit products of a credit 5 provider may be shown on a single or several comparison rate schedules. 6 `146O Warning about comparison rates 7 `(1) The comparison rates in a comparison rate schedule must be 8 accompanied by a warning about the accuracy of the comparison rate that 9 is prescribed by a regulation. 10 `(2) If a comparison rate schedule comprises 2 or more documents, a 11 separate warning must be given on each document. 12 `(3) If a comparison rate schedule is displayed in text on a screen, a 13 regulation may require more than one warning to be given. 14 `146P Other requirements for comparison rate schedules 15 `(1) A comparison rate schedule must comply with the following 16 requirements-- 17 (a) the schedule must have "comparison rate schedule" as its title; 18 (b) the schedule must clearly state the name of the credit provider 19 providing the consumer credit product to which it relates (if the 20 credit provider is ascertainable); 21 (c) the schedule must clearly state the date of its issue. 22 `(2) A comparison rate schedule may contain-- 23 (a) the name of the finance broker or supplier who displays the 24 schedule or makes it available; and 25 (b) information for the purposes of contacting the credit provider, 26 finance broker or supplier named in the schedule. 27 `(3) A comparison rate schedule is not to contain any information other 28 than that required or permitted by or under this Code. 29

 


 

s7 13 s7 Consumer Credit (Queensland) Amendment Bill 2002 `146Q Offence for noncompliance with this Division 1 `A credit provider, finance broker or supplier that contravenes a 2 requirement of this Division is guilty of an offence. 3 Maximum penalty--100 penalty units. 4 `Division 4--Miscellaneous 5 `146R Calculation of comparison rates 6 `(1) A regulation may make provision about the way in which 7 comparison rates are to be calculated for the purposes of this Part. 8 `(2) For the purposes of calculating the relevant comparison rate, credit 9 fees or charges are not ascertainable and need not be included in the 10 calculation if their imposition or amount is dependent on events that may or 11 may not happen (unless a regulation under this section otherwise provides). 12 `146S Compliance grace period following changes in interest or fees 13 `A credit advertisement or comparison rate schedule does not cease to 14 comply with this Part merely because of a change in the annual percentage 15 rate or in any credit fees or charges during the period of 7 days after the 16 change takes effect. 17 `146T Regulations--exemptions and other matters 18 `A regulation may make provision about the following-- 19 (a) exempting any class of persons or matters from the operation of 20 any provision of this Part; 21 (b) requirements with which a credit advertisement containing a 22 comparison rate, or a comparison rate schedule, must comply.'. 23 7 Amendment of pt 12 (Transitional provision for Consumer Credit Clause 24 (Queensland) Amendment Act 2001) 25 (1) Part 12, heading-- 26 omit, insert-- 27

 


 

s7 14 s7 Consumer Credit (Queensland) Amendment Bill 2002 `PART 12--TRANSITIONAL PROVISIONS 1 `Division 1--Transitional provision for Consumer Credit (Queensland) 2 Amendment Act 2001'. 3 (2) After section 185-- 4 insert-- 5 `Division 2--Transitional provision for Consumer Credit (Queensland) 6 Amendment Act 2002 7 `186 Time limits under s 113A for certain civil penalty orders 8 `(1) Section 113A does not apply in relation to a contravention of a key 9 requirement that happened more than 2 years before the commencement of 10 the section. 11 `(2) Subject to subsection (1), section 113A2 applies to a contravention 12 of a key requirement that happened before the commencement of the 13 section.'. 14 State of Queensland 2002 2 Section 113A (Time limit for application for orders under this Division)

 


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