The UCCCMC has announced that an amendment is expected to be made soon to the Consumer Credit Code (the Code) to regulate the use of bill facilities, that is, promissory notes and bills of exchange, by non-ADI’s. Consultation has been occurring since April 2006.
Once the amendment is made (possibly by the end of October 2007), the Code will apply to the use of bill facilities where the credit is provided wholly or predominantly for personal, domestic or household purposes. In Western Australia and Tasmania, this change will take effect at a slighter later date. Bill facilities were previously exempt from the Code.
This amendment will not apply to commercial bill facilities or to any
bill facility (no matter what the purpose) provided by an ADI.
The application of the Code to bill facilities will be brought about by the Consumer Credit (Bill Facilities) Amendment Regulation 2007. By bringing bill facilities within the Code, consumers will benefit from key protections in the Code, including full disclosure of fees and charges, controls on the calculation of interest, access to hardship arrangements and procedural protections in enforcement situations.
Consumer Credit (Bill Facilities) Amendment Regulation (No. 1) 2007 (Qld) was enacted on 30 November 2007. Read the Explanatory Memorandum for more details.