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.
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