Prohibition on unexpired monthly fees in relation to small amount credit contracts
31C Prohibition on unexpired monthly fees in relation to small amount credit contracts
Requirement
A credit provider must not require or accept payment by the debtor under a small amount credit contract of an unexpired monthly fee.
A penalty may be imposed for contravention of a key requirement in this subsection: see Part 6.
An unexpired monthly fee in relation to a small amount credit contract is each permitted monthly fee that is in respect of a month that commences after the date on which the contract is paid out.
If a credit provider contravenes subsection (1) in relation to a small amount credit contract:
the debtor is not liable (and is taken never to have been liable) to make the payment of the unexpired monthly fee to the credit provider; and
the debtor may recover as a debt due to the debtor the amount of any payment of the unexpired monthly fee made by the debtor to the credit provider.
Offence
A person commits an offence if:
the person is subject to a requirement under subsection (1); and
the person engages in conduct; and
the conduct contravenes the requirement.
Criminal penalty: 100 penalty units.
Strict liability offence
A person commits an offence if:
the person is subject to a requirement under subsection (1); and
the person engages in conduct; and
the conduct contravenes the requirement.
Criminal penalty: 10 penalty units.
Subsection (5) is an offence of strict liability.
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