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Anglo-Saxon countries rediscover consumer credit regulation through interest rate restrictions - Payday lending is being targeted in South Australia in an amendment bill 2009.

Below is the text from the South Australian Payday Lending Bill which was raised a few months ago. There is a similar Bill in the pipeline in Western Australia. Three Australian States and ACT have already imposed payday lender interest rate restrictions, with the above two States having Bills in the pipeline. This reassessment of existing non-regulation has also been taking place in other countries. E.g in the last year or so 9 of Canada's 10 Provinces have legislated on payday lenders, and in the US, President Barack Obama is in the process of implementing payday lender interest caps of 36% right across the country.


South Australian Bills

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This is a Bill, not an Act. For current law, see the Acts databases.

 


 

CONSUMER CREDIT (SOUTH AUSTRALIA) (PAY DAY LENDING) AMENDMENT BILL 2009

 

South Australia

Consumer Credit (South Australia) (Pay Day Lending) Amendment Bill 2009

A BILL FOR

An Act to amend the Consumer Credit (South Australia) Act 1995.

 

Contents

Part 1—Preliminary
1 Short title
2 Commencement
3 Amendment provisions

Part 2—Amendment of Consumer Credit (South Australia) Act 1995
4 Amendment of section 3—Definitions
5 Substitution of section 12
12 Maximum annual percentage rate

Schedule 1—Transitional provisions
1 Transitional provisions

 

The Parliament of South Australia enacts as follows:

Part 1—Preliminary

1—Short title

This Act may be cited as the Consumer Credit (South Australia) (Pay Day Lending) Amendment Act 2009.

2—Commencement

(1) Subject to subsection (2), this Act will come into operation on a day to be fixed by proclamation.

(2) If a provision of this Act has not been brought into operation sooner, it will, by force of this subsection, come into operation 3 months after assent.

3—Amendment provisions

In this Act, a provision under a heading referring to the amendment of a specified Act amends the Act so specified.

Part 2—Amendment of Consumer Credit (South Australia) Act 1995

4—Amendment of section 3—Definitions

Section 3—after its present contents (now to be designated as subsection (1)) insert:

(2) Words and expressions used in this Act and also in the Consumer Credit (South Australia) Code have the same meanings in this Act as they have in the Code.

5—Substitution of section 12

Section 12—delete the section and substitute:

12—Maximum annual percentage rate

(1) The maximum annual percentage rate for any credit contract is 48%.

(2) For the purposes of calculating a maximum annual percentage rate under subsection (1), interest charges and credit fees and charges must be included.

(3) However, the regulations may exclude prescribed classes of credit fees or charges from the operation of subsection (2).

(4) Division 2 of Part 2 of the Code (which limits the debtor's monetary obligations) applies in relation to the rate specified by subsection (1) as if that rate had been prescribed by the Code.

(3) Nothing in this section affects the powers of the Court under Division 3 of Part 4 of the Code in relation to a contract, or a provision of a contract, that is not, by reason of this section, void.

Schedule 1—Transitional provisions

1—Transitional provisions

(1) In this clause—

principal Act means the Consumer Credit (South Australia) Act 1995.

(2) Subject to subclause 3, section 12 of the principal Act, as enacted by this Act, applies to any credit contract entered into after the commencement of this Act.

(3) Section 12 of the principal Act, as enacted by this Act, extends to a credit contract entered into before the commencement of this Act if, after that commencement—

(a) the interest charges or credit fees or charges under the credit contract are increased, or a new fee or charge is imposed, whether or not the increase is made, or a new fee or charge is imposed, under the contract; or

(b) the period of the credit contract is extended, whether or not under the contract, other than under section 66 of the Code.

(4) Except as provided by subclause 3, section 12 of the principal Act, as in existence immediately before the commencement of this Act, and any regulations in force under that section immediately before that commencement, will continue to apply to a credit contract entered into before the commencement of this Act as if this Act had not been enacted.



ID: 44431
Publication date: 30/09/09
   
 

Created: 01/10/09. Last changed: 01/10/09.
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