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UCCC to NCCP Changes

The introduction of national regulation of consumer credit involves changes to the existing Uniform Consumer Credit Code which will have implications for lenders and brokers alike. While the National Consumer Credit Protection Act (NCCP) largely replicates the content of the UCCC there are some important differences. Listed below are some of the key differences between the UCCC and the NCCP:

 

 Uniform Consumer Credit Code 
 (UCCC)

National Consumer Credit Protection ACT
(NCCP)

 1) Credit for predominantly personal,
 domestic or household use.

 1) UCCC credit plus credit to purchase,
 renovate, improve or refinance residential
 property for investment purposes.

 2) Applies where debtor is resident of an
 Australian State or Territory.

 2) Applies where credit provider carries on
 business in Australia.
 3) No fringe lending provisions.
 3) Bans security over household goods.
 4) Hardship threshold = $345,290
 (adjusts periodically)
 4) Hardship threshold = $500,000
 (Variable by regulation)
 

 5) Business Purpose Declaration
 "Conclusive".

 5) Business Purpose Declaration no
 longer conclusive. Criminal Penalties. 

 6) Regulator = State or Territory FTA or
 Consumer Affairs.
 6) Regulator = ASIC.

 

 

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