One‑off notice to be given of first default in payment
87 One‑off notice to be given of first default in payment
Which defaults does this section apply to?
This section applies if:
a debtor authorises payment of an amount for a credit contract (other than a low cost credit contract) by direct debit; and
default occurs; and
it is the first occasion the default occurs.
This section also applies if:
a debtor under a low cost credit contract is in default in relation to the payment of an amount under the contract; and
it is the first occasion when the debtor is in default in relation to such a payment.
Offence
The credit provider must give the debtor, and any guarantor, a notice, complying with this section, within 14 days of the default occurring.
Criminal penalty: 50 penalty units.
The notice must contain the information prescribed under the regulations.
Subsection (2) is an offence of strict liability.
For strict liability, see section 6.1 of the Criminal Code.
Other notice requirements not affected
This section does not affect any other requirement under this Code to give a notice.
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