The National Credit Code (NCC) is an Australia wide code administered by ASIC. The NCC provides certain protections for people who have borrowed money for non-business purposes. The NCC does not apply to loans made to a company.
Under the NCC a lender must:
- not lend to a person if the loan agreement is unsuitable for them. (A loan would be unsuitable if the borrower would not be able to meet their loan repayments without experiencing substantial hardship);
- issue a default notice in a prescribed form allowing a borrower certain time to repay any arrears before the lender can take any further steps;
- follow certain procedures when attempting to enforce any mortgage or security
The NCC applies to most loans for an owner occupied property and also loans for an investment property. Because of the protection offered by the NCC it is in your interest as a borrower to have the NCC apply to your loan agreement.
We have many years of experience in offering legal advice upon the NCC.
If you are looking to borrow money – or have borrowed money – and wish to understand if the NCC applies – and what rights you have under it – please contact us. We are here to help!
03 9548 5500
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