Credit Contracts and Consumer Finance Act 2003
Aim: To provide an overview of the Credit Contracts and Consumer Finance Act 2003 (CCCF Act) and an explanation of the rights of the borrower and obligations of the lender.
Outcome: Completion of this module will enable lenders to understand what a consumer credit contract is, the obligations of lenders, and the rights of borrowers when entering into consumer credit contracts.
Abstract: Borrowers that enter into consumer credit contracts have various rights under the CCCF Act which offers them a certain amount of protection, including the right to cancel a contract within a specified time period or vary the terms of a contract due to hardship. These rights also impose obligations on lenders, including the obligation to disclose certain information and not charge unreasonable fees.
The Government has decided to make law changes to the CCCF Act. The CCCF Amendment Bill has been introduced to Parliament and it is expected to become law around Q2 2020. We will update this module once those changes are in place.