State Consumer Credit Code Information
Western Australia
Up until July 2003 Western Australia's Consumer Credit Code was enacted
as "alternative but consistent" legislation rather than by
adopting the "template" Code. From 9 July 2003, as a result
of amendments to the Consumer Credit (Western Australia) Act 1996, the
template Code applies as a law in WA. However, in line with the Tasmanian
model, subsequent amendments made to the template Code in Queensland,
only apply as a law in WA following an Order being published in the Gazette
by the Governor. The Order cannot be made unless each House of Parliament
has first approved a draft of the Order.
Specific Western Australian Provisions
In Western Australia the Consumer Credit Code was enacted as "alternative
but consistent" legislation rather than by adopting the "template" Code.
There are some differences that WA has retained in relation to the way
some aspects of the template Code apply in WA:
Guarantees - section 53(1)
- In Western Australia, the right of a prospective guarantor to withdraw
is only permitted if the debtor terminates the credit contract which
relies on the availability of the credit the subject of the guarantee.
Under the template, a guarantor can withdraw at any time before
the credit that is being guaranteed has been provided. The form
that has to be given to a potential guarantor reflects the different
requirements.
Applying to Government Consumer Agency for assistance section
66 (1a)
- Section 66(1a) enables consumers in WA to apply to a Government
Consumer
Agency for assistance in negotiating a change in the terms of a credit
contract with a credit provider where the consumer is experiencing
genuine
short-term hardship (i.e.. illness or unemployment).
Civil penalties - Part 6
- Section 101(2) of the Western Australian legislation prevents a debtor
or guarantor from applying for a civil penalty only if the contract
is already subject to a civil penalty application in Western Australia.
Under the template legislation the prohibition applies if the contract
is subject to an application anywhere in Australia.
- Declarations and penalty orders under sections 102 and 105 of the
template legislation made outside Western Australia may not apply
automatically in Western Australia.
A separate application to the Western Australian Tribunal may be
needed.
Maximum interest rate
- No maximum interest rate has been prescribed for Western Australia.
More Information?
Publications on Consumer Credit are accessible at the WA Department
of Consumer and Employment Protection website.
Licensing of Credit Providers
A person who, in the course of a business, provides credit regulated
by the Consumer Credit (Western Australia) Code must hold
a Credit Providers Licence under the Credit (Administration)
Act 1984.
Credit providers exempt from licensing include; the Crown, banks,
building societies, credit unions, insurers (when incidental to
insurance), pawnbrokers and pastoral finance companies.
Contact the Western Australian Department of Consumer and
Employment Protection for more information.
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