The following changes are effective 13 January 2020.
Changes to the criteria for the application of repossession rules
The focus of the consumer protection relating to repossession is now on the purpose of the credit, rather than the nature of the goods. If you take security over consumer goods in relation to business loans you will no longer need to comply with the repossession rules set out in Part 3A of the CCCF Act.
If you take consumer goods as security for consumer loans, you will need to ensure you meet your obligations under Part 3A. You can read more about those obligations in our repossession guidelines.
Repossession rules (Part 3A) will continue to apply to non-consumer credit contracts entered into before 13 January 2020 which are secured over consumer goods.
Introduction of offences (including infringement offences) for failing to make prescribed information publicly available including online
It is now an infringement offence for consumer credit providers to fail to display prescribed information on their website, this includes information about:
annual interest rates
how interest is charged
You can find details about the specific information that must be displayed in the regulations.
If you have failed to display your standard form contract terms or if your costs of borrowing are not clear or prominent, you may be prosecuted and face penalties of up to $600,000 for a company and $200,000 for an individual. You can read more about how to ensure disclosure is clear and prominent in our guidelines.