Sch 1 (National Credit Code), s 31B

Credit provider or prescribed person must not require or accept payment of a fee or charge in relation to a small amount credit contract etc

In force

(1)

A credit provider, or a person prescribed by the regulations, must not require or accept payment by the debtor of a fee or charge in relation to:

(a)

a small amount credit contract; or

(b)

the provision of the amount of credit under a small amount credit contract; or

(c)

a thing that is connected with a small amount credit contract or the provision of the amount of credit under such a contract.

Criminal penalty: 100 penalty units.

(2)

Subsection (1) does not apply if the fee or charge is:

(a)

a fee or charge that may be imposed or provided for by the small amount credit contract under section 31A; or

(b)

a fee or charge prescribed by the regulations.

(3)

If a credit provider or person contravenes subsection (1):

(a)

the debtor is not liable (and is taken never to have been liable) to make the payment to the credit provider or person; and

(b)

the debtor may recover as a debt due to the debtor the amount of any payment made by the debtor to the credit provider or person.

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