What are the consumer credit laws in Australia?

What are the consumer credit laws in Australia?

Consumer credit provides money so that a person can buy goods and services now, without their own money, by paying the price in the future over a period of time. Australians of the uses of consumer credit especially with credit cards. The deregulation of Australia's financial markets in the 1980s has led to easy credit from the fiercely competitive credit providers such as banks building societies, finance companies, credit unions and non-bank card issuers like Virgin and mortgage organisations like Aussie home loans.

Consumer credit used to be regulated by different legislation depending on the type of credit including hire purchase, led by common moneylenders and bills of sale legislation. Modern consumer credit legislation now regulates all credit transactions. However this legislation was the product of the 1970s marketplace and although it did contain reforms, it was still very complex, inflexible and prescriptive.  The ends of unified simplified credit laws were supported by the ministerial Council on consumer affairs and agreement was reached in 1993 on the introduction of uniform Australia wide consumer credit laws, the necessary legislation was passed in the Queensland Parliament in 1994. All states and territories have applied the Queensland code as local law.

The uniform consumer credit code is a national scheme by states and territories administered by a different state and territory governments. There was for a long time no push at the moment the administration of UCCC to move to the Commonwealth, although some aspects of consumer credit growing were monitored by the Australian Securities and Investments Commission, Commonwealth agency.  However, in the last six months in Australia with the introduction of the National Consumer Credit Protection Act 2009 (Cth) there has been a shift towards the regulation of consumer credit in the sphere of federal law and therefore the Australian Securities and Investments Commission.  If you have any questions about these laws, you can contact the author using the links below.

David Coleman is a lawyer in Sydney Australia with over 10 years experience in the legal industry. If you need legal advice or a access to a legal document click on the links contained here.

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