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 LOOKING AFTER YOUR INTERESTS -
 THE CONSUMER CREDIT CODE
 The Consumer Credit Code (sometimes
 known as the 'Uniform Consumer Credit
 Code' ) is a law governing consumer lending
 in Australia and is designed to protect the
 interests of consumers. The Code does not
 apply to credit for business or investment
 purposes. In summary, it applies to credit
 provided wholly or predominantly for personal,
 domestic or household purposes where you
 are an individual or a strata corporation.
 FIND OUT MORE ABOUT THE
 CONSUMER CREDIT CODE
 You can find out more about the Consumer
 Credit Code by visiting the Consumer Credit
 Code website at: www.creditcode.gov.au
 The Code covers all major financial institutions
 and other providers of credit, including:
 - banks
 - building societies
 - credit unions
 - finance companies
 - friendly societies
 - retail stores and other businesses
 - government bodies that offer credit
 - payday lenders
 Credit products covered by the Code include:
 - personal loans
 - credit cards
 - store cards
 - overdrafts
 - housing loans
 - hire of goods
 - payday loans
 The Code also applies to related mortgages
 and guarantees.
 BEFORE YOU SIGN00/span>
 In accordance with the Code, the credit
 provider must provide you with a pre-
 contractual statement before you offer
 to enter into a credit contract with them
 or actually do so (such as by signing the
 contract or using a credit card). The
 statement must be in writing and must
 be easy to understand. It should include:
 - the credit provider's name
 - the amount of credit that is
 to be provided
 - the annual percentage rate(s)
 (often called the interest rate)
 - how interest is calculated
 and when it is charged
 - the total amount of interest if the
 loan is paid within seven years
 - any enforcement expenses that
 may become payable
 - credit fees and charges
 - how you will be informed of changes
 to the contract
 - any default rate of interest and how
 this is calculated
 - how often statements will be provided
 - commission charges
 - whether a mortgage or guarantee
 applies to the loan
 - any related insurance that is financed
 under the contract
 IN AUSTRALIA, A VARIETY OF FINANCIAL INSTITUTIONS AND BUSINESSES CAN
 PROVIDE CREDIT. SOMETIMES, DECIDING WHICH BUSINESS TO GO TO CAN SEEM
 AS COMPLICATED AS DECIDING WHICH TYPE OF CREDIT TO CHOOSE. DIFFERENT
 CREDIT PROVIDERS HAVE THEIR OWN PROS AND CONS, SO IT'S IMPORTANT TO
 CHOOSE CAREFULLY.
 CREDIT PROVIDERS AND THE LAW
 CREDIT PROVIDERS AND THE LAW
 
 
 PAGE P13
 Hardship variations can alter loan
 agreements by:
 - extending the length of the contract
 or reducing the amount of repayments
 - postponing the dates of repayments
 - extending the length of the loan
 and postponing payment during
 a specified period
 WHEN DOESN'T THE CODE APPLY?
 The Consumer Credit Code doesn't apply to
 all consumer credit. For example, the Code
 does not apply to the following types of credit:
 - credit provided for 62 days or less but
 only where the maximum credit fees and
 charges are less than 5% of the amount
 of credit and the maximum interest
 charges are not more than 24% per year
 - credit provided without prior agreement
 (for example, when a cheque account
 becomes overdrawn and there is no
 agreed overdraft facility)
 - continuing credit where the only charge
 that is made for providing the credit is a
 periodic or other fixed charge that does
 not vary according to the amount of
 credit provided
 - the debit part of a joint debit and
 credit facility
 - credit arising from bills of exchange
 or promissory notes
 - credit provided by an insurer for the
 payment of insurance premiums by
 instalment
 - credit provided by either pawnbrokers
 or by trustees of deceased estates
 - employee loans in certain circumstances
 (some provisions of the Code still apply)
 PAWNBROKERS
 Pawnbrokers provide money in return for
 valuable goods which they hold until the loan
 is repaid. A fee is charged on this type of
 loan. Pawnbrokers are not covered by the
 Consumer Credit Code. Instead, they are
 generally covered by separate legislation
 in the various states and territories.
 You must also be given an information
 statement that outlines your rights and
 obligations under the credit contract.
 You may get these two types of statements
 together or separately, but you should receive
 them (and read them), before you sign a
 contract or otherwise accept its terms.
 READ BEFORE YOU SIGN!
 It's your responsibility to read pre-contractual
 statements and information statements. If
 there is anything you don't understand, make
 sure you ask the lender about it before you
 sign the contract.
 Once you sign a credit contract it becomes
 legally binding - regardless of whether or not
 you've read it, and regardless of whether or
 not you understand all of it. So, always read,
 and ask if necessary, before you sign.
 AFTER YOU SIGN00/span>
 The Code still applies once you've entered
 into the contract - in fact it applies for the
 life of the credit contract.
 STATEMENTS
 Once you have entered into your credit
 contract, your lender is bound by the Code to
 provide you with regular account statements
 that include:
 - all credit provided during the
 statement period
 - fees and charges applying in
 the statement period
 - the name of the supplier in any
 credit card purchases
 - interest charges (including when they
 were charged) and the interest rate
 - opening and closing balances for the
 statement period
 - dates on which the statement period
 begins and ends
 - payments and transfers to and from
 other accounts
 - the minimum payment owed and the
 due date for that payment
 - certain insurance payments made,
 including the name of the insurer and
 any commission paid
 - any corrections to previous accounts
 IF YOU'RE EXPERIENCING HARDSHIP00/span>
 The Code recognises the importance of
 protecting consumers and allowing changes
 to credit contracts, such as loans, in special
 circumstances. If your circumstances
 change as a result of job loss, illness, or
 another reasonable cause but your inability
 to pay is only temporary, talk to your lender
 because it may be possible to have your
 repayments adjusted. Note that hardship
 variations are not likely to change the
 interest rate on your loan agreement or
 reduce the amount you owe. Ultimately, you
 must still be able to repay the loan, even if
 it may take longer than the original terms
 of the loan agreement.
 CREDIT PROVIDERS AND THE LAW
 CREDIT PROVIDERS AND THE LAW