Consumer Credit Code Exemption Applications
Code Policy
The policy objective of the Consumer Credit Code is that it should
apply to all consumer lenders and all products. Certain exemptions were written into the
Code and it was not anticipated that additional exemptions would be granted (as has been
the case with the previous legislation) unless it was discovered that products were
unintentionally caught by the Code’s provisions. In this way the Code is intended to
be competitively neutral with no lender or product gaining an advantage in the
marketplace.
Role of Uniform Consumer Credit Code Management Committee (UCCCMC)
In July 1996 the Standing Committee of Officials of Consumer
Affairs (SCOCA) established the Uniform Consumer Credit Code Management Committee (UCCCMC)
to monitor and co-ordinate all activities relating to the Code in order to ensure
consistency in its implementation and administration across jurisdictions. One of
UCCCMC’s functions is to deal with applications for exemption from the Code.
Exemption Process
A credit provider or their representative may submit a written
exemption application to the Chair of UCCCMC or any UCCCMC member. Generally, the
jurisdiction receiving the application will prepare a report for circulation to UCCCMC
members outlining the applicant’s case and recommending whether the application
should be supported or refused. Following receipt of comments from each member, the UCCCMC
Chair prepares a report to the Ministerial Council on Consumer Affairs (MCCA) conveying
the Committee’s recommendation as to how the exemption application should be
determined. Under the Australian Uniform Credit Laws Agreement, requests for exemption
from the Code must be approved by two-thirds of Ministerial Council members.
Procedures for Dealing with Code Exemption Applications
The following procedures and flow chart clearly document the
various stages of the exemption application process, allocate responsibility for each of
the tasks involved and specify time frames. This information has been provided to assist
exemption applicants in their understanding of the process and the likely time frame for
determinations.
1. Receipt of Applications
1.1 |
An exemption application shall be submitted in
writing, by a credit provider or their representative to the Chair of
UCCCMC or any UCCCMC member.
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1.2 |
An exemption application may be submitted to UCCCMC
via a member of MCCA.
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1.3 |
Applicants shall clearly outline in their
submission the grounds for seeking exemption and provide all relevant
supporting material.
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2. Exemption Reports
2.1 |
A report shall be prepared for circulation to
UCCCMC members outlining the applicant’s case and recommending whether the
application should be supported or refused.
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2.2 |
Where the application relates to one State or
Territory, the affected jurisdiction shall be responsible for preparing
the exemption report.
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2.3 |
Where the application has national effect, the
jurisdiction receiving the application shall be responsible for preparing
the exemption report subject to 2.4.
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2.4 |
Where the application is received from a national
industry body, the chairing jurisdiction shall be responsible for
preparing the exemption report.
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3. Processing Exemption Reports
3.1 |
When completed, exemption reports shall be
submitted to the MCCA Secretariat.
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3.2 |
Following consultation with the UCCCMC Chair, the
Secretariat shall arrange circulation of the report to all jurisdictions
and specify a return date for responses.
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3.3 |
Generally, jurisdictions shall be given 10 working
days to register their written response to the exemption report.
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3.4 |
Following the receipt of all responses, the
Secretariat shall prepare a summary of comments received from each
jurisdiction for circulation to all UCCCMC members.
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3.5 |
Where there is a need for further clarification of
the issues involved, the Chair may initiate further consultation with the
jurisdiction responsible for preparing the exemption report and other
UCCCMC members with a view to obtaining a conclusive view from each
jurisdiction.
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3.6 |
Where two-thirds of UCCCMC members support the
granting of an exemption, a recommendation to this effect shall be made to
MCCA.
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3.7 |
Where a two-third majority of UCCCMC members is not
obtained, a recommendation shall be made to MCCA that the exemption
application be refused.
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4. Reports to MCCA (Ministerial Council on
Consumer Affairs)
4.1 |
The Chair shall prepare a report to MCCA conveying
UCCCMC’s recommendation as to how the exemption application should be
determined and seeking a decision by MCCA members.
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4.2 |
The Chair shall ensure that, where there is not
unanimous support for an UCCCMC resolution on an exemption application the
report to MCCA shall include the views of dissenting
jurisdictions.
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4.3 |
The Secretariat shall arrange circulation of the
Chair’s report to MCCA members for an out-of-session decision (and to
UCCCMC members for information).
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4.4 |
Generally, MCCA members shall be given 15 working
days to respond to the Chair’s report.
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4.5 |
In accordance with the Australian Uniform Credit
Laws Agreement, approval of an exemption application shall require the
support of two thirds of MCCA members.
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4.6 |
Following receipt of MCCA’s decision, the
Secretariat shall convey advice of the outcome to all UCCCMC
members.
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5. Advice to Applicants
5.1 |
The Chair of UCCCMC shall forward a letter to the
exemption applicant advising of MCCA’s determination.
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5.2 |
The Secretariat shall forward a copy of the letter
to the applicant to all UCCCMC members.
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6. Making of Exemption Regulations
6.1 |
Where an exemption application has been approved by
MCCA, the Chair, in consultation with the jurisdiction which prepared the
exemption report, shall arrange for the NSW Parliamentary Counsel to
prepare a draft exemption regulation.
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6.2 |
The Chair shall submit
the draft exemption regulation to MCCA for
approval. |
6.3 |
Upon approval by MCCA, the Chair shall forward the
draft exemption regulation to the Queensland representative of
UCCCMC.
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6.4 |
The Queensland UCCCMC representative shall arrange
for the relevant amendment to be made to the uniform regulations giving
effect to the exemption (this is to include liaison with the Tasmanian and
Western Australian UCCCMC representatives on a common commencement date
for the exemption regulation).
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6.5 |
On advice that the Queensland Governor in Council
has approved of the making of a regulation, the Queensland UCCCMC
representative shall forward a copy of the approved regulation to the
Tasmanian and Western Australian UCCCMC representatives.
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6.6 |
The Tasmanian and Western Australian UCCCMC
representatives shall arrange for the exemption to be given effect under
the applicable legislation in their jurisdictions.
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Further Enquiries
Further details regarding exemption applications may be obtained by contacting a member of the Uniform Consumer Credit Code Management Committee.
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