Consumer credit - maximum annual percentage rate

On 19 October 2005 the Government introduced into Parliament the Consumer Credit (New South Wales) Amendment (Maximum Annual Percentage Rate) Bill 2005. The Bill passed through both Houses of Parliament on 10 November 2005 and was assented to on 17 November 2005. The Act commenced on 1st March 2006.

The main features of the Act are:

• It extends the requirement to disclose charges that are in the nature of interest as interest to all consumer credit contracts regulated by the Consumer Credit Code;
• It extends the provision requiring the inclusion of credit fees and charges in the calculation of the maximum annual percentage rate, to all consumer credit contracts regulated by the Consumer Credit Code;
• It includes an exemption for any fees charged in connection with a temporary credit facility offered by an authorised deposit-taking institution such as an overdraft, and;
• To provide that contracts entered into before the date of commencement (proposed as 1 March 2006) are not affected except in relation to new fees and charges levied after commencement.