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Department of Justice and Community Safety

CREDIT PROVIDERS AND FINANCE BROKERS

 

The ACT Office of Regulatory Services registers credit providers and finance brokers in the ACT.

General information

If you buy goods, services or land now, and pay a charge for them later, you are being provided with credit. Typical credit providers include:

  • banks;
  • credit unions;
  • building societies;
  • finance companies; and
  • businesses.

A credit provider or finance broker is an agent who bring two parties together, enabling them to enter into a contract to which he is not a principal. His remuneration consists of a brokerage, which is usually calculated as a percentage of the sum involved in the contract but may be fixed according to a tariff. Brokers are used because they have specialized knowledge of certain markets or to conceal the identity of a principal, in addition to introducing buyers to sellers.

CONSUMER CREDIT CODE

The Consumer Credit Code provides uniform regulation of most personal credit transactions in Australia including credit cards, personal loans and home loans.

What Does the Code Do?

The code presents credit information in a standard way. Credit providers must tell you what your rights are in any credit transaction. Typical credit providers include:

  • banks;
  • credit unions;
  • building societies;
  • finance companies; and
  • businesses.

All relevant information about your credit arrangement must be in writing. This includes interest rates, fees, commissions and other financial information.

Flexibility

If a person loses their job or becomes ill, they are able to ask for a contract variation so that repayments can still be met.

Credit providers are required to be careful not to make contracts with consumers who would find it difficult to meet their repayments. A court may order changes to a contract if it is considered unjust.

Protection

Credit providers cannot attempt to repossess or seize your goods without giving at least 30 days notice that they intend to do so. In some circumstances they must obtain a court order.

 

Legislation