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STANDING COMMITTEE OF OFFICIALS OF CONSUMER AFFAIRS
CONSUMER CREDIT CODE
STATEMENT OF ENFORCEMENT POLICY
VALUATION FEES
The Consumer Credit (Queensland) Amendment Act 2002 inserts into the
Consumer Credit Code a new Part 9A, which provides for the mandatory disclosure
of comparison rates:
- in advertisements for fixed term credit which feature an annual percentage
rate, and
- in comparison rate schedules which are to be made available to consumers.
Section 33F of the Consumer Credit Amendment Regulation (No. 1) 2003,
which sets out the formula to be used to calculate comparison rates, provides
that the calculation is to include all credit fees or charges that are ascertainable
at the time the comparison rate is disclosed, other than government fees, charges
or duties.
Questions have been raised regarding whether valuation fees which vary according
to customer circumstances should be included in the comparison rate calculation
if the exact amount of the fee to be charged is not known at the time the comparison
rate is disclosed.
The Standing Committee of Official of Consumer Affairs (SCOCA) has agreed to
the following enforcement approach by government consumer agencies in relation
to this issue:
Where there is no uncertainty over whether a consumer will be charged
a valuation fee, but the exact amount of the fee is not known at the time
a comparison rate is disclosed, a reasonable estimate of the likely valuation
fee is to be included for the purposes of calculating the comparison rate.
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