Zero-Interest Credit Card T&Cs
Card conditions of use
1. Introduction
Your use of your Card and any transactions performed under your Account are governed by this document.
2. About your Card
2.1 Subject to clause 9, you may use your Card to make purchases anywhere where Mastercard cards are accepted for transactions if there is a sufficient Available Balance for the amount of the transaction.
2.2 Your Card will be activated and ready for use once we have approved the opening of your Account.
2.3 Your Card is only valid up to the expiry date shown on the Card. Once your Card expires, you cannot access the Available Balance of your Account unless a replacement Card is issued to you.
3. The Credit Limit
3.1 We agree to make available to you credit up to the Credit Limit.
3.2 We may reduce the Credit Limit at any time without your consent. If we reduce your Credit Limit, we will notify you as soon as reasonably practicable afterwards.
3.3 You may reduce your Credit Limit at any time. We will take reasonable steps to give effect to any request by you to reduce your Credit Limit as soon as practicable.
3.4 We may only increase your Credit Limit at your request.
3.5 You must ensure that you do not exceed your Credit Limit. You must pay to us any amount owing in excess of the Credit Limit immediately.
3.6 If we authorise a transaction that causes your Credit Limit to be exceeded, we are not agreeing to an increase in your Credit Limit.
4. Replacement Cards
4.1 You may request a replacement Card at any time by contacting us. A fee may apply for issuing the replacement Card.
4.2 We may automatically issue a replacement Card to you without notifying you before we do so. A replacement Card may be issued to you after you notify us that your Device or Card information is misused, lost or stolen and the Card has been cancelled.
4.3 We reserve the right not to issue a replacement Card to you.
4.4 The use of any replacement Card is subject to this credit card contract.
5. Using your Card
5.1 Subject to clause 9, you can use your Card to purchase goods and services over the phone or the internet from merchants (within Australia and overseas) which accept Mastercard cards, or from merchants within Australian which accept Mastercard cards and have EFTPOS available.
5.2 We may allow you to use your Card to make a cash advance by transferring money from your Account to another account. A fee may apply if you obtain a cash advance using your Card.
5.3 You must not to make any transactions that exceed the Available Balance of your Account. If your Account does not have an Available Balance, any attempted transactions made with your Card may be declined. If you make any transactions that exceed the Available Balance of your Account, you must pay to us any amount owing in excess of the Available Balance immediately, along with any costs or interest we incur in recovering or attempting to recover the amount owing from you.
5.4 Transactions made using your Card are subject to your daily transaction limits.
5.5 We have the right to decline to accept your authorisation for any transaction if we have reason to doubt the authenticity or validity of the authorisation or your legal capacity to give the authorisation.
5.6 You cannot stop payment on any transaction after it has been completed. If you have a problem with a purchase made with your Card, or a dispute with a merchant, you must deal directly with the merchant involved. If you cannot resolve the dispute with the merchant, you should contact us on 1300 990 115.
5.7 When completing a transaction, you must ensure that the details are correct prior to authorisation, and you should retain any receipt issued for your records. You should ensure that the correct amount is entered in the EFTPOS terminal before you authorise a purchase.
5.8 If you are entitled to a refund for any reason relating to a transaction, you agree to accept the refund under the policy of that specific merchant. Refunds may be in the form of a credit to your Card or in store credit.
5.9 We are not liable in any way when an authorisation is declined for any particular transaction, and we are not responsible if a merchant refuses to accept your Card.
5.10 We do not accept any responsibility for the goods or services purchased with your Card. Any complaints about those goods and services must be addressed to the merchant.
| IMPORTANT: We are not responsible or liable for any goods or services you purchase with your Card. If you have a complaint about those goods or services, you must contact the merchant directly. |
5.11 Your Card may not be used for any direct or recurring debit payments.
6. Debiting your Account
6.1 We can debit your Accountwith any:
(a) purchases;
(b) cash advances;
(c) fees and charges;
(d) government charges;
(e) enforcement expenses incurred by us enforcing this credit card contract; and
(f) any other transactions permitted by us, at our discretion.
6.2 Transactions may not be processed to your Accounton the same day as they occur.
6.3 Unless otherwise specified in this credit card contract, you are liable for all amounts we debit to your Account.
7. Fees and charges
7.1 You must pay all the fees and charges specified in the Schedule of this credit card contract (as varied from time to time) when due.
7.2 Certain merchants may charge an additional fee if your Card is used to purchase goods and/or services. This fee is determined and charged by the merchant and is not retained by us.
7.3 You must also pay us any government duties, taxes and other charges on receipts, duties or withdrawals that apply to your Account. We may debit these duties, taxes and charges to your Account as and when they become payable.
8. Transactions outside Australia
8.1 You can use your Card to purchase goods and services from merchants outside Australia.
8.2 Transactions made with your Card in a currency other than Australian dollars will be subject to the prevailing Mastercard exchange rate at the time plus an international transaction fee.
9. Limitations of use of your Card
9.1 Your Card must not be used for any illegal transactions. The following transactions are also prohibited and may be declined:
(a) wires and money orders;
(b) illegal substances or drugs;
(c) drug proprietaries and sundries;
(d) manual cash disburse;
(e) automated cash disburse;
(f) betting and casino gambling;
(g) bail and bond payments;
(h) tax payments (government agencies); and
(i) any other transactions not approved by us.
9.2 Some merchants may choose not to accept Mastercard and will therefore not accept your Card as payment for goods or services.
9.3 The Schedule of this credit card contract sets out the transaction limits applicable to your Card. We may impose other daily transaction limits at any time by notifying you. Merchants or other providers of facilities may impose additional limits.
10. Payments
10.1 You must pay the minimum repayment amount shown on your statement each month by the due date. You can make additional payments at any time.
10.2 Payments are to be made by direct debit or by any other reasonable method we direct. You must sign a direct debit authority to authorise us to debit one of your bank accounts for payments due under this credit card contract and you must keep that account open. You authorise us to use that direct debit authority for payment of any amounts due under of this credit card contract. If an attempted direct debit fails, we may make reasonable further attempts to direct debit your account until the direct debit is successful.
10.3 If any payment is due on a day that is not a business day, the payment must be made on or before the next business day (even if that means that the payment is due in the next calendar month).
10.4 Your payments are made only when we credit them to your Account. Payments will be credited when they are received by us.
10.5 All payments must be made in full when they are due without you deducting, setting off or counterclaiming any money you think we owe you for any reason.
10.6 Payments to your Account are allocated as determined by us from time to time but in accordance with any applicable laws.
10.7 Payments can only be made in Australia and in Australian dollars.
10.8 If you have more than one account with us, and your Account is in arrears while any of those other accounts have funds available to be drawn, you authorise us to appropriate from one or more of those accounts to pay some or all of your arrears. We are not obliged to do this.
11. Default
| IMPORTANT: The events which may cause you to default under this credit card contract are listed below. You may default even if you have made all your payments. If you are in default, we may cancel your Card and require repayment of the balance outstanding. |
- You will be in default under this credit card contract if:
(a) you fail to pay any money to us when due;
(b) you become bankrupt, are wound up, or become subject to administration or receivership or any similar arrangement under any law;
(c) you are sentenced to jail for a term of 12 months or more; or
(d) any information you gave to us in relation to this credit card contract is found to be materially untrue or misleading.
11.2 If you are in default under this credit card contract, we may take any of the following actions:
(a) Suspend your Card.
(b) Cancel your Card.
(c) Require repayment of the outstanding balance of your Account and all other money payable under this credit card contract after giving you at least 30 days notice of the default.
11.3 If we cancel your Card, you must destroy any physical Card.
11.4 If you do not pay the minimum repayment for a statement period by the due date, we may elect not to provide any further credit to you until your Account is brought up to date and you satisfy any other requirements we reasonably impose.
11.5 Our rights under this credit card contract are unaffected by any delay in exercising those rights, or by us giving you any time or other indulgence, except to the extent those rights are waived by law.
12. Enforcement expenses
| IMPORTANT: If you default under this credit card contract, enforcement expenses may be payable. This means that you may have to pay any of our reasonable collection expenses, and any other internal or external costs we incur as a result of your default. |
12.1 Enforcement expenses may become payable by you if you default under or breach this credit card contract. We may debit your Account with our enforcement expenses at any time after they are incurred.
12.2 Enforcement expenses include collection expenses, expenses resulting from dishonour of a payment, and any internal or external costs we incur as a result of you breaching or defaulting under this credit card contract (including legal costs and expenses on a full indemnity basis or solicitor and own client basis, whichever is higher).
12.3 Enforcement expenses payable by you will not exceed our reasonable enforcement costs (including internal costs).
12.4 You indemnify us from and against any expense, loss, loss of profit, damage or liability which we incur as a consequence of a breach of or default under this credit card contract, except where such loss arises from the mistake, error, fraud, negligence or wilful misconduct of us, our employees, our agents or a receiver we appoint, or is otherwise recovered by us.
13. Cancellation or suspension of your Card by us
| IMPORTANT: We may suspend your Card at any time without notice. We may cancel your Card at any time without notice if you are in default or if we consider it reasonably necessary to prevent loss to you or us. |
13.1 In addition to our rights on default as set out in clause 11, we may suspend or cancel your Card at any time without prior notice. In particular, we may suspend or cancel your Card if we consider it reasonably necessary to prevent loss to you or us, including for security reasons and if there is suspected fraud.
13.2 If we cancel or suspend your Card, we will notify you promptly afterwards. We may also block or terminate access to your Account. If we cancel your Card, you must destroy any physical Card.
13.3 If we cancel or suspend your Card under this clause 13, you must continue paying the minimum repayment amount shown on each statement issued after the cancellation or suspension. Fees and charges and government charges will continue to be charged to your Account until you repay your Account in full.
13.4 You indemnify us against any loss or damage you may sustain as a result of your Card being cancelled or suspended.
14. Closing your Account and terminating this credit card contract
14.1 You may close your Account and terminate this credit card contract at any time by giving us notice in writing. We will take reasonable steps to give effect to your request as soon as practicable.
14.2 Before we close your Account and terminate this credit card contract, you must repay any outstanding balance of your Account plus any fees and charges owing but not yet debited. Your obligations under this credit card contract will continue, and fees and charges and our reasonable enforcement expenses will continue to be chargeable, until the outstanding balance of your Account is reduced to zero.
14.3 You will continue to be responsible for any transactions made before we fully process the closure of your Account.
15. Changes to this credit card contract
| IMPORTANT: We can make changes to this credit card contract at any time (except interest rate changes during a fixed rate period). In making any changes, we will act reasonably. |
15.1 Acting reasonably, we may change or vary any term of this credit card contract at any time, including:
(a) changing the amount or time for repayments;
(b) changing the frequency of any payment;
(c) changing the amount or frequency of the payment of any fee or charge;
(d) imposing a new fee or charge;
(e) changing the transaction limits;
(f) imposing an interest rate for transactions; and
(g) making any other reasonable change.
15.2 We will give you:
(a) not less than 20 days notice of a change to the amount, frequency or due date of your repayments;
(b) not less than 20 days notice of a change to the fees and charges payable;
(c) notice of a change to any government charge or tax not later than the day on which the change takes effect; and
(d) not less than 30 days notice of any other change we make to this credit card contract.
We may give you a shorter notice period or no notice if the change is not adverse to you or reduces your obligations. We may also not give you notice of a change to the amount of your repayments if your repayments are determined by reference to a method of calculation.
15.3 Changes necessitated by an immediate need to restore or maintain the security of the system in which your Card is used can be made without prior notice in accordance with the ePayments Code.
15.4 We will notify you of any change or variation to this credit card contract either in writing (including by electronic means) or by publishing a notice that is accessible to you and reasonably prominent. Any variation will take effect from the date specified in the notice of change we give you. We will endeavour to give you reasonable notice.
15.5 If you are not satisfied with any change or variation to this credit card contract, you may close your Account in accordance with clause 14. We will not charge you any fees for terminating this credit card contract and closing your Account.
16. Statements
16.1 We will send you a statement each month where there are any transactions on your Account or a balance outstanding on your Account. In all cases, we will send you a statement at least every six months.
16.2 Statements will be provided to you via the Handy Finance app.
16.3 It is your responsibility to regularly review your transaction history and statements for your Account to identify Unauthorised Transactions. If you believe there is an error in your statement, you must notify us immediately.
Security of your Card and liability for Unauthorised Transactions
17. Security requirements
17.1 You must make sure that you keep your Card, Identifiers, PIN and any Pass Code safe and secure.
17.2 You must ensure that any security details required to access your Device are not easily guessed.
17.3 When using your Card, you should:
(a) prevent anyone else from seeing you enter your PIN into an EFTPOS terminal;
(b) always lock your Device;
(c) assign a Device Passcode to unlock your Device;
(d) not share your Device Passcode with anyone;
(e) not store anyone else’s Biometric Identifier within your Device; and
(f) remove any other registered Biometric Identifier which is not your own from your Device.
17.4 You must not:
(a) allow anyone else to use your Card;
(b) unnecessarily disclose your Card number to anyone;
(c) carry your PIN with your Device;
(d) record your PIN or any Pass Code on anything carried with your Card or Device, or liable to loss or theft simultaneously with your Card or Device, without making a reasonable attempt to protect the security of your PIN or Pass Code;
(e) disclose your PIN or any Pass Code to anyone, including a family member or friend;
(f) lend your Device to anyone or leave your Device unattended; or
(g) be careless about protecting the security of your PIN or Pass Codes.
18. Breach of security and Unauthorised Transactions
18.1 If you know or have reason to suspect that:
(a) your Device or Card information has been lost, stolen or damaged, or is likely to be misused;
(b) someone else may know any of your Pass Codes or Identifiers; or
(c) an Unauthorised Transaction has occurred,
you must immediately notify us on 1300 990 115. We may then suspend or cancel your Card to restrict further use.
18.2 You may be required to confirm details of the loss, theft or misuse in writing and to provide particular information when reporting the loss, theft or misuse to us.
18.3 You must examine statements for your Account to identify and report any Unauthorised Transactions as soon as possible.
18.4 If an Unauthorised Transaction occurs, your liability for losses arising from the Unauthorised Transaction will be determined under the ePayments Code.
18.5 In some circumstances, transactions made using your Card may be covered by Mastercard’s Zero Liability Protection Policy, in which case you will not be liable for Unauthorised Transactions.
| IMPORTANT: There are some situations in which you may be liable for Unauthorised Transactions made using your Card. Read the below provisions carefully. |
19. When you are not liable for Unauthorised Transactions
19.1 You will not be liable for losses resulting from Unauthorised Transactions where it is clear that you have not contributed to the loss.
19.2 You will not be liable for losses resulting from Unauthorised Transactions that are caused by:
(a) fraud or negligence by our employees or agents, a third party involved in networking arrangements, or a merchant or their employee or agent;
(b) a Card, Identifier or Pass Code which is forged, faulty, expired or cancelled;
(c) a transaction requiring the use of your Card and/or Pass Code that occurred before you have received your Card and/or Pass Code (including a re-issued Card and/or Pass Code);
(d) a transaction being incorrectly debited to your Account more than once; or
(e) an Unauthorised Transaction performed after you have informed us that your Device or Card information has been misused, lost or stolen, or the security of a Pass Code has been breached.
19.3 You are not liable for loss arising from Unauthorised Transactions that can be made using an Identifier without your Card or a PIN. Where a transaction can be made using your Card, or your Card and an Identifier, but does not require a PIN, you are liable only if you unreasonably delay reporting the loss or theft of your Device or Card information to us.
20. When you are liable for Unauthorised Transactions
20.1 You are liable for loss resulting from an Unauthorised Transactions if we can prove on the balance of probability that you contributed to the loss through fraud or by breaching the security requirements in clause 17. In those circumstances, you are liable in full for the actual losses that occur before the loss, theft or misuse of your Device or Card information, or breach of Pass Code security is reported to us.
20.2 You will be liable for losses arising from an Unauthorised Transaction if we can prove on the balance of probability that you contributed to those losses by unreasonably delaying reporting the misuse, loss or theft of your Device or Card information, or that the security of your Pass Code(s) has been breached. In those circumstances, you are liable in full for the actual losses that occur between when you became or should reasonably have become aware of the loss, theft or misuse, or security breach.
20.3 If the circumstances specified in clauses 20.1 or 20.2 apply, you will not be liable for any portion of losses:
(a) incurred on any one day in excess of any applicable daily transaction limit;
(b) incurred in any period in excess of any applicable periodic transaction limit;
(c) that exceeds the Available Balance; and
(d) incurred if we and you had not agreed that your Account could be accessed using your Card or Identifier and/or Pass Code used to perform the transaction.
20.4 If a Pass Code was required to perform an Unauthorised Transaction and the circumstances specified in clauses 20.1 to 20.3 do not apply (for example, if it is not clear whether you have contributed to the loss), you will be liable for the least of:
(a) $150;
(b) the Available Balance; or
(c) the actual loss at the time that the misuse, loss or theft of your Device or Card information, or the breach of Pass Code security, is reported to us, excluding that portion of the losses incurred on any one day which exceeds any relevant daily or other periodic transaction limit.
20.5 If you report an Unauthorised Transaction, we will not hold you liable for losses arising from the Unauthorised Transaction for an amount greater than your liability if we exercised any rights under the Mastercard Scheme Rules at the time of the report against other parties to the Mastercard scheme (for example, chargeback rights).
21. Liability caused by equipment malfunctions
21.1 You are not liable for any loss caused by the failure of a system or equipment provided by any party to a shared electronic network to complete a transaction accepted by the system or equipment in accordance with your instructions.
21.2 If you incur loss as a result of a shared electronic network being unavailable or malfunctioning, and you should reasonably have been aware of the unavailability or malfunction, our liability will be limited to:
(a) correcting any errors; and
(b) reducing any fees or charges imposed on you.
21.3 We’re not responsible for:
(a) errors, inaccuracies, interruptions, viruses or defects due to any system or equipment failing to complete a transaction;
(b) delays resulting from any network, system or equipment failing to support the interactive service or card; or
(c) any internet banking or telephone banking service, or card system or equipment, failing to complete your transaction instructions.
22. Chargebacks
22.1 In some circumstances, you may be able to request a chargeback of a transaction when you have a dispute with a merchant, such as the merchant’s failure to supply the goods or services you paid for.
22.2 A chargeback is a right under the Mastercard Scheme Rules which allows a transaction to be effectively reversed by us debiting an amount to the merchant’s financial institution and crediting that amount back to the Available Balance of your Account. We can only process chargebacks if the Mastercard Scheme Rules allow us to.
22.3 If you believe that you are entitled to a chargeback, you must notify us as soon as possible by contacting us on 1300 990 115.
22.4 The Mastercard Scheme Rules impose time limits for initiating chargebacks. The time limit is generally 90 days from the date of the disputed transaction. Our ability to initiate a chargeback on your behalf may be lost if you do not notify us within the required timeframe.
22.5 If you request a chargeback, we may need you to provide additional information. If you do not provide the requested information within the required timeframe, you may lose any rights to the chargeback, and if the chargeback has already been processed, we may reverse it.
22.6 If we process a chargeback, the merchant may have rights under the Mastercard Scheme Rules to have the transaction investigated further, and this may result in the chargeback being reversed in some circumstances (which means that the original transaction might be reinstated by being debited to the Available Balance of your Account).
General provisions
23. How we can deal with this credit card contract
| IMPORTANT: We may disclose information about you to any third party involved in an actual or proposed assignment, novation or dealing by us, and that disclosure may be in a form that may enable that third party to identify you. |
23.1 We may at any time assign, novate or otherwise deal with our rights and obligations under this credit card contract, and any document or agreement entered into or provided under or in connection with this credit card contract in any way we wish. You must sign anything and do anything we reasonably require to enable any dealing with this credit card contract, and any document or agreement entered into or provided under or in connection with this credit card contract. Any dealing with our rights does not change your obligations under this credit card contract in any way.
23.2 You may not assign, novate or otherwise deal with your rights or obligations under this credit card contract, and any document or agreement entered into or provided under or in connection with this credit card contract.
23.3 We may disclose information about you and this credit card contract to any person involved in an actual or proposed assignment, novation or dealing by us with our rights under this credit card contract.
24. Governing law
24.1 This credit card contract is usually governed by the laws of the Australian state or territory in which you reside. If any borrower does not ordinarily reside in Australia, this credit card contract is governed by the laws of New South Wales.
24.2 You submit to the jurisdiction of the courts of the Australian state or territory whose laws apply to this credit card contract and the proper jurisdiction of any other court.
25. Applicable laws
To the extent that this credit card contract is regulated under consumer legislation (such as the National Credit Code) or any other law, any provisions in this credit card contract which do not comply with that law have no effect, and to the extent necessary, this credit card contract is to be read so it does not impose obligations prohibited by that law.
26. Severability
If any provision of this credit card contract is illegal or becomes illegal at any time, the affected provision will cease to have effect, but the balance of this credit card contract will remain in full force and effect, and we may by notice vary this credit card contract so that the provision is no longer illegal.
27. Changes to your contact details
You must tell us promptly if your contact details change (including any residential, postal or electronic address, or your phone number) or if you think there is any information that we should be aware of about your ability to comply with this credit card contract.
28. How we can give you notices or other documents in connection with your loan
28.1 Subject to any applicable laws, we may give you any notice, statement, demand, court document (including any collection notice, default notice, court originating process or other court document) or other document connected to this credit card contract by:
(a) giving it to you personally;
(b) leaving it at or posting it to your residential or business address last known to us;
(c) electronic means to your electronic address last known to us; or
(d) any other means permitted by law.
28.2 Any notice, statement, demand, court document or other document may be signed by any employee, solicitor or agent on our behalf.
29. If we are a trustee
If we are at any time trustee or custodian of any trust, our liability is limited to the assets of that trust which are available to us to satisfy that liability.
30. Identification information
On request by us, you must provide us with any information we require about you or anyone authorised to operate your loan account and, if you are a company or trustee, information about beneficial owners of you.
Definitions and interpretation
31. Definitions
Words in this credit card contract are defined as follows.
(a) Account means the Handy Credit Account opened in your name to record transactions.
(b) Available Balance means the amount recorded by us within your Account that is available for transactions.
(c) Biometric Identifier means a fingerprint, faceprint or any other similar biometric identifier.
(d) Card means the digital card issued to you to transact on your Account.
(e) Credit Limit means the amount specified in the Schedule of this credit card contract as varied from time to time.
(f) Device means a compatible smartphone or wearable device that supports a Device Wallet, enabling you to use the device as a payment method for purchase transactions.
(g) Device Passcode means anything used to unlock and access a Device, including, but not limited to, a password, numerical code, pattern or Biometric Identifier.
(h) Device Wallet means the Apple Pay, Google Pay or Samsung Pay mobile applications that store the Card on a compatible phone or wearable device.
(i) Identifier means any information that you know but are not required to keep secret and which you must provide to perform a transaction (for example, the number of your Card).
(j) Pass Code means a password or code that we may require to authenticate your identity or a transaction, such as your PIN.
(k) PIN means the four-digit personal identification number which we issue to you in connection with your Card.
(l) Unauthorised Transaction means a transaction made using your Card that is not authorised by you , but does not include any transaction carried out by you or by anyone performing the transaction with your knowledge and consent.
32. Interpretation
In this credit card contract:
(a) a reference to the singular includes the plural and vice versa;
(b) a reference to a document includes any variation or replacement of it;
(c) a reference to a person includes any other entity recognised by law;
(d) a reference to a person or to a party to this credit card contract includes its successors and permitted assigns;
(e) headings are for ease of reference only and not to assist interpretation; and
(f) use of examples is illustrative of the context only and does not limit the natural meaning of the terms of this credit card contract.
INFORMATION STATEMENT
THINGS YOU SHOULD KNOW ABOUT YOUR PROPOSED CREDIT CONTRACT
This statement tells you about some of the rights and obligations of yourself and your credit provider.
It does not state the terms and conditions of your contract.
If you have any concerns about your contract, contact the credit provider and, if you still have concerns, the AFCA scheme, or get legal advice.
| THE CONTRACT |
| How can I get details of my proposed credit contract? Your credit provider must give you a pre-contractual statement containing certain information about your contract. The precontractual statement, and this document, must be given to you before – your contract is entered into; oryou make an offer to enter into the contract, whichever happens first. |
| How can I get a copy of the final contract? If the contract document is to be signed by you and returned to your credit provider, you must be given a copy to keep. Also, the credit provider must give you a copy of the final contract within 14 days after it is made. This rule does not, however, apply, if the credit provider has previously given you a copy of the contract document to keep. If you want another copy of your contract, write to your credit provider and ask for one. Your credit provider may charge you a fee. Your credit provider has to give you a copy – within 14 days of your written request if the original contract came into existence 1 year or less before your request; orotherwise within 30 days of your written request. |
| Can I terminate the contract? Yes. You can terminate the contract by writing to the credit provider so long as – you have not obtained any credit under the contract; ora card or other means of obtaining credit given to you by your credit provider has not been used to acquire goods or services for which credit is to be provided under the contract. However, you will still have to pay any fees or charges incurred before you terminated the contract. |
| Can I pay my credit contract out early? Yes. Pay your credit provider the amount required to pay out your credit contract on the day you wish to end your contract. |
| How can I find out the pay out figure? You can write to your credit provider at any time and ask for a statement of the pay out figure as at any date you specify. You can also ask for details of how the amount is made up. Your credit provider must give you the statement within 7 days after you give your request to the credit provider. You may be charged a fee for the statement. |
Will I pay less interest if I pay out my contract early? Yes. The interest you can be charged depends on the actual time money is owing. However, you may have to pay an early termination charge (if your contract permits your credit provider to charge one) and other fees. |
| Can my contract be changed by my credit provider? Yes, but only if your contract says so. |
| Will I be told in advance if my credit provider is going to make a change in the contract? That depends on the type of change. For example – you get at least same day notice for a change to an annual percentage rate. That notice may be a written notice to you or a notice published by your credit provider.you get 20 days advance written notice for –a change in the way in which interest is calculated; ora change in credit fees and charges; or any other changes by your credit provider, except where the change reduces what you have to pay or the change happens automatically under the contract. |
| Is there anything I can do if I think that my contract is unjust? Yes. You should first talk to your credit provider. Discuss the matter and see if you can come to some arrangement. If that is not successful, you may contact the AFCA scheme. The AFCA scheme is a free service established to provide you with an independent mechanism to resolve specific complaints. The AFCA scheme can be contacted by phone on 1800 931 678, by email at [email protected], or in writing to GPO Box 3, Melbourne VIC 3001. Alternatively, you can go to court. You may wish to get legal advice, for example from your community legal centre or Legal Aid. You can also contact ASIC, the regulator, for information on 1300 300 630 or through ASIC’s website at http://www.asic.gov.au. |
| INSURANCE |
| Do I have to take out insurance? Your credit provider can insist you take out or pay the cost of types of insurance specifically allowed by law. These are compulsory third party personal injury insurance, mortgage indemnity insurance or insurance over property covered by any mortgage. Otherwise, you can decide if you want to take out insurance or not. If you take out insurance, the credit provider cannot insist that you use any particular insurance company. |
| Will I get details of my insurance cover? Yes, if you have taken out insurance over mortgaged property or consumer credit insurance and the premium is financed by your credit provider. In that case the insurer must give you a copy of the policy within 14 days after the insurer has accepted the insurance proposal. |
| Also, if you acquire an interest in any such insurance policy which is taken out by your credit provider then, within 14 days of that happening, your credit provider must ensure you have a written notice of the particulars of that insurance. You can always ask the insurer for details of your insurance contract. If you ask in writing your insurer must give you a statement containing all the provisions of the contract. |
| If the insurer does not accept my proposal, will I be told? Yes, if the insurance was to be financed by the credit contract. The insurer will inform you if the proposal is rejected. |
| In that case, what happens to the premiums? Your credit provider must give you a refund or credit unless the insurance is to be arranged with another insurer. |
| What happens if my credit contract ends before any insurance contract over mortgaged property? You can end the insurance contract and get a proportionate rebate of any premium from the insurer. |
| MORTGAGES |
| If my contract says I have to give a mortgage, what does this mean? A mortgage means that you give your credit provider certain rights over any property you mortgage. If you default under your contract, you can lose that property and you might still owe money to the credit provider. |
| Should I get a copy of my mortgage? Yes. It can be part of your credit contract or, if it is a separate document, you will be given a copy of the mortgage within 14 days after your mortgage is entered into. However, you need not be given a copy if the credit provider has previously given you a copy of the mortgage document to keep. |
| Is there anything that I am not allowed to do with the property I have mortgaged? The law says you cannot assign or dispose of the property unless you have your credit provider’s, or the court’s, permission. You must also look after the property. Read the mortgage document as well. It will usually have other terms and conditions about what you can or cannot do with the property. |
| What can I do if I find that I cannot afford my repayments and there is a mortgage over property? See the answers to questions 22 and 23. Otherwise you may – if the mortgaged property is goods – give the property back to your credit provider, together with a letter saying you want the credit provider to sell the property for you;sell the property, but only if your credit provider gives permission first; OR give the property to someone who may then take over the repayments, but only if your credit provider gives permission first. |
| If your credit provider won’t give permission, you can contact the AFCA scheme for help. If you have a guarantor, talk to the guarantor who may be able to help you. You should understand that you may owe money to your credit provider even after the mortgaged property is sold. |
| Can my credit provider take or sell the mortgaged property? Yes, if you have not carried out all of your obligations under your contract. |
| If my credit provider writes asking me where the mortgaged goods are, do I have to say where they are? Yes. You have 7 days after receiving your credit provider’s request to tell your credit provider. If you do not have the goods you must give your credit provider all the information you have so they can be traced. |
| When can my credit provider or its agent come into a residence to take possession of mortgaged goods? Your credit provider can only do so if it has the court’s approval or the written consent of the occupier which is given after the occupier is informed in writing of the relevant section in the National Credit Code. |
| GENERAL |
| What do I do if I cannot make a repayment? Get in touch with your credit provider immediately. Discuss the matter and see if you can come to some arrangement. You can ask your credit provider to change your contract in a number of ways – to extend the term of your contract and reduce payments; orto extend the term of your contract and delay payments for a set time; orto delay payments for a set time. |
| What if my credit provider and I cannot agree on a suitable arrangement? If the credit provider refuses your request to change the repayments, you can ask the credit provider to review this decision if you think it is wrong. If the credit provider still refuses your request you can complain to the AFCA scheme. Further details about this scheme are set out below in question 25. |
| Can my credit provider take action against me? Yes, if you are in default under your contract. But the law says that you cannot be unduly harassed or threatened for repayments. If you think you are being unduly harassed or threatened, contact the AFCA scheme or ASIC, or get legal advice. |
| Do I have any other rights and obligations? Yes. The law will give you other rights and obligations. You should also READ YOUR CONTRACT carefully. |
| IF YOU HAVE ANY COMPLAINTS ABOUT YOUR CREDIT CONTRACT, OR WANT MORE INFORMATION, CONTACT YOUR CREDIT PROVIDER. YOU MUST ATTEMPT TO RESOLVE YOUR COMPLAINT WITH YOUR CREDIT PROVIDER BEFORE CONTACTING THE AFCA SCHEME. IF YOU HAVE A COMPLAINT WHICH REMAINS UNRESOLVED AFTER SPEAKING TO YOUR CREDIT PROVIDER, YOU CAN CONTACT THE AFCA SCHEME OR GET LEGAL ADVICE. THE AFCA SCHEME IS A FREE SERVICE ESTABLISHED TO PROVIDE YOU WITH AN INDEPENDENT MECHANISM TO RESOLVE SPECIFIC COMPLAINTS. THE AFCA SCHEME CAN BE CONTACTED BY PHONE ON 1800 931 678, BY EMAIL AT [email protected], OR IN WRITING TO GPO BOX 3, MELBOURNE VIC 3001. PLEASE KEEP THIS INFORMATION STATEMENT. YOU MAY WANT SOME INFORMATION FROM IT AT A LATER DATE. |