Document ID: chunk:federal_register_of_legislation:C2022A00087:clause:4_31c
Version: federal_register_of_legislation:C2022A00087
Segment Type: clause
Provision Reference: sch 4 cl 31C
Character Range: 18913–20407

31C  Prohibition on unexpired monthly fees in relation to small amount credit contracts

Requirement
 (1) A credit provider must not require or accept payment by the debtor under a small amount credit contract of an unexpired monthly fee.
Note: A penalty may be imposed for contravention of a key requirement in this subsection: see Part 6.
 (2) An unexpired monthly fee in relation to a small amount credit contract is each permitted monthly fee that is in respect of a month that commences after the date on which the contract is paid out.
 (3) If a credit provider contravenes subsection (1) in relation to a small amount credit contract:
 (a) the debtor is not liable (and is taken never to have been liable) to make the payment of the unexpired monthly fee to the credit provider; and
 (b) the debtor may recover as a debt due to the debtor the amount of any payment of the unexpired monthly fee made by the debtor to the credit provider.

Offence
 (4) A person commits an offence if:
 (a) the person is subject to a requirement under subsection (1); and
 (b) the person engages in conduct; and
 (c) the conduct contravenes the requirement.
Criminal penalty: 100 penalty units.

Strict liability offence
 (5) A person commits an offence if:
 (a) the person is subject to a requirement under subsection (1); and
 (b) the person engages in conduct; and
 (c) the conduct contravenes the requirement.
Criminal penalty: 10 penalty units.
 (6) Subsection (5) is an offence of strict liability.