Document ID: chunk:federal_register_of_legislation:F2022L00976:body:0:p3
Version: federal_register_of_legislation:F2022L00976
Segment Type: other
Provision Reference: 
Character Range: 5373–7537

a continuing credit provider or of an associate must not cause or authorise the provider or associate to impose or provide for fees and charges under a collateral contract in relation to a continuing credit contract except in accordance with the condition in subsection (5).
Condition
(5) The total of:
           (a) the amount of fees and charges that may be imposed or provided for under the continuing credit contract; and
           (b) the amount of fees and charges that:
              (i)  may be imposed or provided for under:
                  (A) a collateral contract (other than a collateral non-cash payment facility); or
                  (B) a contract, arrangement or understanding that belongs to a series or combination that constitutes the continuing credit contract (except for a fee or charge already counted under paragraph (a)); and
              (ii) are paid or payable by a retail client;
must not exceed the maximum charge permitted under subsection 6(5) of the National Credit Code or regulations made for the purposes of that subsection.

6 Application
(1) This instrument applies in relation to a continuing credit contract entered into on or after the commencement of this instrument.
(2) For the avoidance of doubt, where a continuing credit provider is not purporting to rely on subsection 6(5) of the National Credit Code in relation to a continuing credit contract, subsections 5(1) to (4) of this instrument do not apply in relation to the contract.
(3) This instrument does not apply in relation to a continuing credit contract if:
           (a) the continuing credit contract forms a part of a buy now pay later arrangement; and
           (b) each advance of credit under the continuing credit contract occurs as a result of the buy now pay later arrangement.
       Note 1: The application of the orders in section 5 is subject to the limitations in section 1023C of the Act.
       Note 2: Subject to the Court making an order staying or otherwise affecting the operation of the orders in section 5, the orders will remain in force for 18 months from the day this instrument commences: see subsection 1023G(2) of the Act.