National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

See section 3 of the National Credit Act.

PART 5 - ENDING AND ENFORCING CREDIT CONTRACTS, MORTGAGES AND GUARANTEES  

Division 1 - Ending of credit contract by debtor etc.  

Subdivision C - Notice of first default in payment  

87   One-off notice to be given of first default in payment  

Which defaults does this section apply to?

87(1)    
This section applies if:

(a) a debtor authorises payment of an amount for a credit contract (other than a low cost credit contract) by direct debit; and

(b) default occurs; and

(c) it is the first occasion the default occurs.

87(1A)    

This section also applies if:

(a)    a debtor under a low cost credit contract is in default in relation to the payment of an amount under the contract; and

(b)    it is the first occasion when the debtor is in default in relation to such a payment.

Offence

87(2)    

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.

87(3)    

The notice must contain the information prescribed under the regulations.

87(4)    
Subsection (2) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code .

Other notice requirements not affected

87(5)    
This section does not affect any other requirement under this Code to give a notice.

87(6)    
(Repealed by No 130 of 2012)