Code Principles and Administration

Objectives

Essentially the objectives of the Code are to provide laws which apply equally to all forms of consumer lending and to all credit providers, and which are uniform in all jurisdictions in Australia.

The legislation is based on the principles of truth-in lending which will allow borrowers to make informed choices when purchasing credit.

The Code applies rules which regulate the credit provider's conduct throughout the life of a loan, but without restricting product flexibility and consumer choice. The policy of the legislation is to rely generally on competitive forces to provide price restraint but to provide significant redress mechanisms for borrowers in the event that credit providers fail to comply with the legislation.

The Code is designed to apply to a deregulated credit market and provide standards for the provision of credit which will not be overtaken by changes in the financial marketplace.

Legislative Structure

The legislative structure of the Code is based upon a template scheme. This means that template legislation has been passed (in Queensland: Consumer Credit (Queensland) Act 1994 and the Consumer Credit Regulation (Queensland) 1995).

All States and Territories have passed enabling legislation which adopts the template legislation and applies it in the State or Territory as "in force from time to time". By doing this, any amendments (changes) to the Code or Regulations only need to be made to the template legislation; they will then automatically apply in other states without amendment to those States' Enabling Acts.  See the State Information for a link to the WA legislation.

Note: Prior to July 2003 Western Australia's Consumer Credit Code was enacted as "alternative but consistent" legislation rather than by adopting the "template" Code. As a result of amendments to the Consumer Credit (Western Australia) Act 1996 which commenced in July 2003, 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. WA's legislation retained some slight differences see the State Information for a link to the WA legislation.

Under the Uniform Consumer Credit Laws Agreement 1993 (AUCLA) the Ministerial Council for Uniform Credit Laws (an offshoot of the Ministerial Council on Consumer Affairs) has to agree to amendments to the Code by a two-thirds majority.

All states and territories are required by the AUCLA not to introduce legislation into their parliaments which conflicts with or negates the Code.

National Management

While the Consumer Credit Code is essentially "national" legislation, its administration is the responsibility of eight different State and Territory Governments.

Recognising the need for some formal structure to ensure consistency in the Code's implementation and application, the Standing Committee of Officials of Consumer Affairs (which reports to the Ministerial Council on Consumer Affairs) established the Uniform Consumer Credit Code Management Committee (UCCCMC) in 1996.

The Committee's role is to monitor and co-ordinate all activities relating to the Consumer Credit Code in order to ensure consistency in the Code's implementation and administration across jurisdictions.

Specific functions include consideration of amendments to the Code and Regulations, as well as review of Code exemption applications. The Committee is responsible for developing and administering procedures, schemes and arrangements designed to ensure consistency in the implementation of the Code.

The Committee comprises a representative from each jurisdiction and is presently chaired by Victoria. A complete list of Committee members and contact details appears below.

One of the intentions behind the creation of the Committee was to provide stakeholders with a national focus for Credit Code issues. Consequently, the Committee is able to receive submissions directly through its chair without the need for the correspondent to first negotiate the bureaucracies of one or more jurisdictions. This means that if an industry or consumer group has concerns over a particular issue, they can bring this directly to the attention of the Committee.

Credit Code Contacts 

If you wish to make a complaint about a possible breach of the Code, you should contact the appropriate fair trading/consumer protection agency in your State or Territory.

Please note: State and Territory fair trading/consumer protection agencies are not able to provide advice to credit providers on how to conduct their businesses to ensure compliance with the Code. You will need to seek advice appropriate to your business from a suitable professional or industry body.

If you wish to make a submission about the operation of the Code, have suggestions for reform or amendment, or wish to discuss any current reviews or discussion papers then you can contact the current members of the Uniform Consumer Credit Code Management Committee (UCCCMC) listed below:

MCCA CONTACT OFFICER

Disclaimer

Disclaimer: The information provided in this web site is of a general nature only and does not replace the Code itself. You should obtain your own copy of the Code and seek independent legal advice if you believe you are affected by the Code.

The Government Consumer Agencies assume no responsibility or liability in relation to anyone acting in reliance on the information provided on or linked to this site.