The meaning of key words, including ‘we’ and ‘you’, is explained in the section ‘Key words explained’.
How we may exercise our rights and discretions
Giving us instructions
How we provide your personal loan
Operating your personal loan
Your general payment obligations
Fees and charges and other amounts
Repayments for personal loans
Early repayment of personal loan
Changes we can make
NAB Personal Loan Cover insurance
Banking Code of Practice
Payments and effective dating
Contacting each other
Restriction on set off, combination or counterclaim by you
Our rights for set off, combination and counterclaim
Our right to debit other accounts
Key words explained
1.1 We’ll exercise any rights or discretions we have under this contract fairly, reasonably and in accordance with our business needs.
1.2 We may exercise a right or remedy, or give or refuse consent, in any way we consider appropriate, including by imposing conditions. You must comply with all conditions and requirements in any consent we give, or agreement to any request you make.
1.3 If we do not exercise a right or remedy fully or at a given time, we can still exercise it later.
1.4 Our rights and remedies under this contract are in addition to other rights and remedies given by law independently of this contract.
1.5 Our rights and remedies may be exercised by any officer or any other person we authorise.
1.6 We’re not liable for loss or damage caused by the exercise or attempted exercise of, failure to exercise, or delay in exercising, a right or remedy where:
(a) there’s no breach of a legal duty of care owed to you by us or by any of our employees or agents; or
(b) such loss or damage is not a reasonably foreseeable result of any such breach.
Also, we are not responsible for any loss or damage resulting from a breach by you of any term of this contract.
2.1 We only have to provide your personal loan if:
(a) nothing has happened since you applied for the personal loan which has led, or which we reasonably believe could lead, to a significant adverse change in your financial circumstances;
(b) we have received any document or information we reasonably require;
(c) you’re not in default under this contract (for example, you have paid all relevant fees and interest charges and haven’t given us any misleading financial or other information); and
(d) you have complied with all of our other reasonable requirements.
2.2 If there’s more than one of you:
(a) we’ll treat this contract as accepted when each of you have notified us in a manner reasonably acceptable to us that you have accepted it;
(b) the acceptance date will be the date of the last acceptance; and
(c) each of you may accept this contract separately, and each acceptance will be taken to form part of the one contract binding all of you.
2.3 You mustn’t use any part of your personal loan for business purposes.
3.1 Subject to the section ‘Redraw’ and 3.2, if there’s more than one of you, each of you authorises any one of you to give us instructions in relation to this contract, including any changes to this contract. These instructions will bind all of you.
3.2 We will not act on instructions from one of you where any of you tells us that any or all of you are in dispute with each other. In these circumstances, we will ask all of you to confirm the relevant instructions.
3.3 If you and we agree that loan funds will be used to finance NAB Personal Loan Cover insurance premiums, you are taken to have authorised us to debit the amount of the premiums to your loan account. For more information about how this affects your repayments, see the section ‘NAB Personal Loan Cover insurance’.
4.1 Your personal loan must be borrowed in full at the one time, and this must be done within 90 days of the offer date, unless we agree otherwise. We may treat this contract as ended in respect of any part of the personal loan that you have not borrowed within 90 days of the offer date, or such other agreed date, even if we have charged you any fees to establish the loan. In these circumstances, we may retain the fees that we have charged you to establish the loan. See the section ‘Fees and charges and other amounts’ and the clause(s) under the heading ‘Retaining and rebating fees and charges if this contract ends’.
4.2 However, we may subsequently use loan funds under this contract to finance NAB Personal Loan Cover insurance premiums if you and we agree. See the section ‘NAB Personal Loan Cover insurance’.
4.3 If you have told us that you will use some or all of the proceeds of your personal loan to repay a debt or credit facility with another credit provider:
(a) we will pay the loan funds into an account nominated by you; and
(b) you must immediately transfer those funds to pay off and close the other debt or credit facility.
4.4 The conditions in the section ‘First Steps’ must be met before we lend you all, or any part, of your personal loan.
5.1 We’ll make your personal loan available through a loan account.
(a) Your personal loan is made available to you through a loan account established by us.
(b) If you have not operated your account for seven years (or such other period of time specified in Australian legislation dealing with unclaimed moneys) (for example, by making repayments or redrawing funds), the account may be closed and any credit balance you have in the account will be transferred to the Commonwealth Government as unclaimed money. We will notify you at your last known address at least 30 days before this takes effect.
5.2 Which amounts are drawn from the loan account
(a) Any amounts payable in connection with the loan account (other than your principal and interest repayments) will be automatically debited to the loan account.
(b) We will also debit to the loan account any NAB Personal Loan Cover insurance premium that you have asked us to pay in accordance with the section ‘NAB Personal Loan Cover insurance’.
6 You must
(a) repay all amounts you borrow from us and pay us interest charges, fees and other amounts under this contract;
(b) pay the total owing under this contract on or before the last day of the loan term; and
(c) pay amounts due under this contract in a manner acceptable to us.
7.1 Amounts to be paid
You must pay us:
(a) all fees and charges, including any government charges and duties calculated in accordance with the relevant legislation, in the circumstances described in your letter of offer and any changed or new fee or charge notified to you;
(b) if we’re liable to pay GST or any similar tax on a supply (as defined in relevant legislation) (”the supply”) made in connection with this contract, an additional amount equal to the consideration payable for the supply multiplied by the prevailing GST rate; and
(c) when asked by us, any reasonable expenses we reasonably incur in enforcing this contract or a security after you’re in default (including all expenses reasonably incurred in preserving and maintaining a security property).
7.2 Debiting fees and charges
We may debit these amounts on or after the date we pay them or the date they become due or payable by you or us (whichever is earlier). We’ll endeavour (where reasonable and practicable) to notify you before we debit enforcement expenses to a facility account.
7.3 Changes to fees and charges
Subject to any representations we have made to the contrary and the section ‘How we may exercise our rights and discretions’, we may change the amount, type of fees and charges and when they’re payable (including by imposing new fees and charges or changing the method of their calculation). We’ll give you advance notice if we make these changes. See the section ‘Contacting each other’ for information about how we may give notice. Some changes in government fees and charges are publicised by the government and not by us.
7.4 Retaining and rebating fees and charges if this contract ends
If this contract ends before you obtain credit under it, we will keep fees that you have paid in relation to establishing your contract.
We’ll rebate to you any amount paid by you to us, or reduce the amount payable to us, which was intended to directly meet a third party fee or charge which is no longer payable because this contract ends.
8.1 You must pay us interest charges for each day on the balance owing on the loan account for the end of that day. Interest charges are calculated daily at the interest rate applying to the account for that day on the basis of a 365 day year (including in a leap year).
8.2 The interest charges for an account accrue daily from the settlement date and are debited on:
(a) the last banking day of each month; and
(b) on the day when the total owing is finally paid.
9.1 The amount of each repayment payable is stated in your letter of offer.
9.2 You may ask us to change the frequency of your repayments.
9.3 We may:
(a) change the amount of the repayments for the loan account in line with changes to the interest rate for that loan account, changes to fees or charges or otherwise as necessary to ensure that the total owing is repaid within the loan term;
(b) on or about each anniversary of the settlement date for a loan account (or the end of any longer period we choose), review the amount of any repayment for that loan account if it’s calculated using a variable interest rate.
We may also change the amount of your repayments to cover the cost of any annual NAB Personal Loan Cover insurance premium where you and we have agreed that loan funds will be used to finance the premiums. See the section ‘NAB Personal Loan Cover insurance’.
9.4 We’ll notify you before making any change to a repayment amount unless we’re not required by law or an industry code to give you this notice. See the section ‘Contacting each other’ about how we may give you notice.
9.5 Repayments must be made in the following way.
(a) You must make repayments for a loan account at the frequency stated in your letter of offer.
(b) Your first repayment for a loan account is due as described in the letter of offer.
(c) All following repayments for the loan account are then due:
(i) for monthly repayments, on the same date in each following month as the first repayment. If a particular month does not have that date, you must make your repayment on the last day of that month;
(ii) for fortnightly repayments, on the same day in each following fortnight as the first repayment; and
(iii) for weekly repayments, on the same day in each following week as the first repayment.
10.1 You may repay early all or any part of the personal loan at any time.
10.2 If you repay early only part of the loan account, your repayment does not change unless we agree otherwise.
10.3 If you choose to prepay the total owing at any time before the end of the loan term, (so that your loan account has either a zero or credit balance):
(a) we may close your loan account and we will usually do this within one banking day of the account having a zero or credit balance; and
(b) if we do this, this contract is ended.
The total owing on your loan account is subject to change. You can check with us to see if a prepayment will pay out and close your loan account.
11 WARNING: If there is more than one of you, any one of you can redraw from your personal loan. You must specifically advise us if you wish to cancel this redraw option or if you wish only to redraw on the joint instructions of all of you. All of you are then required to authorise redraw before we can agree to your request. You can notify us at any time that you cancel the authority.
11.1 Your right to redraw
You have an automatic right to redraw amounts in respect of the loan account subject to:
(a) there being an amount to redraw which is determined in accordance with this section ‘Redraw’ and the clause(s) under the heading ‘Amount you can redraw’; and
(b) the conditions in this section ‘Redraw’ and the clause(s) under the heading ‘Redraw conditions’.
Otherwise redraw is at our discretion. Any amount you redraw becomes part of the amount of credit
11.2 Amount you can redraw
You may only redraw if the expected amount outstanding for the loan account on a day is more than the balance owing on the loan account on that day (excluding any uncleared funds which have been credited to the loan account), and this difference between amounts is called the excess amount.
If you are permitted to redraw, the maximum you will be able to redraw is the excess amount. We ordinarily deduct from this one contracted repayment amount.
11.3 Redraw conditions
You may redraw only if:
(a) the loan account has a variable interest rate;
(b) the redraw option has not been cancelled by us under this section ‘Redraw’ and the clause(s) under the heading ‘Cancelling redraw’ or by any one of you (unless the option has subsequently been re-activated);
(c) the redraw amount is at least a minimum amount which we determine from time to time; and
(d) your request for a redraw has been made in accordance with our standard procedures.
11.4 When you must not request a redraw
You must not request a redraw if:
(a) the redraw amount is to be used for business purposes; or
(b) you’re aware of anything which could adversely affect your ability to repay the personal loan as a result of the redraw; or
(c) you’re in default of your payment obligations under this contract.
11.5 Cancelling redraw
You may cancel this automatic right to redraw at any time by notifying us to that effect. See the section ‘Contacting each other’ about how to give us notice.
We may cancel this automatic right to redraw at any time where you are in default under this contract or where we believe on reasonable grounds that continued operation of the redraw may cause loss to you or us.
Subject to the section ‘How we may exercise our rights and discretions’, we may also cancel this automatic right to redraw at any other time.
When we cancel an automatic right to redraw we may do so without prior notice to you but will give you notice after we do so. See the section ‘Contacting each other’ for how we may give you notice.
11.6 Redraw at our discretion
If there is an amount to redraw (determined in accordance with the section ‘Amount you can redraw’) but you do not satisfy all the conditions set out in the section ‘Redraw conditions’, you may request a redraw at our discretion.
12 Our indicator rates (used to calculate your interest rate under this contract) are published daily on our website, and may also be published from time to time in the press. You may also obtain information about our indicator rates by contacting us.
12.1 A variable interest rate applies to the loan account unless it has a fixed interest rate.
12.2 If a loan account has a variable interest rate, we may change the amount of that interest rate at any time under the section ‘Changes we can make’. The variable interest rate stated in your letter of offer is the rate applying at the offer date and is only a guide – the actual rate which applies to a loan account may be different.
12.3 We’ll generally give you notice on or before the date of any change in the variable interest rate. However, we may decide not to give you notice of this if it is not required by law or an industry code. See the section ‘Contacting each other’ about how we may give you notice.
13 We may conduct a review of the operation of your loan accounts and your financial position. The review may be conducted at any time. As a result of a review and subject to the section ‘How we may exercise our rights and discretions’, we may vary this contract, including by changing your principal and interest repayments under this contract to ensure that the total owing is repaid within the loan term.
14.1 When are you in default?
You’re in default if:
(a) you do not pay on time any amount due under this contract;
(b) you breach any material provision of this contract or other agreement you have with us and that breach can’t be remedied, or isn’t remedied, within 30 days of notice requiring you to do so;
(c) you, or someone you have authorised us to get information from about you, gives us information which we reasonably believe to be incorrect or misleading in connection with this contract;
(d) you or another person does not carry out in full an undertaking given in connection with this contract, within the period specified, or immediately if no period is specified;
(e) you are or become insolvent or steps are commenced to make you insolvent; or
(f) we reasonably believe you or another person has acted fraudulently in connection with this contract or another agreement you have with us.
14.2 What can happen when you are in default
(a) If you’re in default, we may give you a notice stating that you’re in default. If you do not correct the default within any grace period given in the notice or required by law (or if you’re in default again for a similar reason at the end of that period), then, at the end of that period and without further notice to you, the total owing under this contract becomes immediately due for payment (to the extent it is not already due for payment).
(b) We may then sue you for that amount.
(c) In limited circumstances set down by law (such as if we’re unable to locate you), we need not give the notice or wait until the end of any grace period given in a notice. Instead, if you’re in default, the total owing under this contract becomes immediately due for payment without notice (if it is not already due for payment). We may then immediately sue you for that.
(d) Your obligation to pay on time is not cancelled by this clause.
15.1 In addition to other changes we may make (as set out in this contract), we may, subject to any representations we have made:
(a) change the interest rate by:
(i) changing the relevant indicator rate from time to time in accordance with our normal practices for that indicator rate; or
(ii) substituting a different indicator rate; or
(iii) changing any applicable margins;
(b) change the amount, frequency or time for payment of the credit fees and charges payable by you (including government charges);
(c) change the amount, frequency or time for payment of repayments;
(d) change the method by which interest is calculated or the frequency with which it is charged;
(e) impose a new fee or charge;
(f) change the frequency with which you’re entitled to receive statements of account under this contract; or
(g) change any of the other provisions of this contract.
15.2 We’ll exercise our rights in this section ‘Changes we can make’ fairly and reasonably and may act in accordance with our business needs. We’ll tell you of any unilateral change to this contract made by us. How we give you notice is set out in the section ‘Contacting each other’. We’ll do this no later than the day the change takes effect.
15.3 Where we’re not required by law to give you prior notice of a change, we may elect not to do so.
15.4 If the Banking Code of Practice applies to this contract:
(a) apart from the changes to interest rates (see 12.3) or changes to repayments (see 9.3 and 9.4), if we believe any other change is unfavourable to you, then we will give you prior notice of at least 30 days subject to (b).
(b) we may give you a shorter notice period, or no notice, of an unfavourable change if that is in accordance with the law and applicable industry codes and if:
(i) it is reasonable for us to manage a material and immediate risk; or
(ii) there is a new or varied government charge in connection with this contract. In that case, we will tell you about the introduction or change reasonably promptly after the government notifies us. However, we do not have to tell you about the change or introduction if the government publicises it.
15.5 If the National Credit Code applies to this contract, we’ll only vary this contract in accordance with that Code and this clause 15. See also the section ‘Giving us instructions’.
15.6 We may agree with you and if there’s more than one of you, any one of you, to change this contract or to defer or waive any of these terms and conditions without creating a new contract and the change will bind all of you.
16 NAB Personal Loan Cover is consumer credit insurance. At your request we will arrange any NAB Personal Loan Cover insurance specified in your letter of offer or as otherwise agreed to by us, including the renewal of any such insurance. In all cases, you will be responsible for all insurance costs. Where we arrange any such insurance, or where any such insurance is renewed, the premiums will be debited to your loan account if we have agreed to finance the premiums. Nothing in this clause prevents you taking up or renewing any other consumer credit insurance.
17.1 You must promptly give us any information about your financial position that we reasonably request.
17.2 You must do anything (such as producing and signing documents) that we reasonably require to give full effect to this contract.
18 Unless otherwise agreed, we give you statements for a loan account every six months. We may choose not to give you a statement if not required by law or an industry code to do so.
19.1 We have adopted the Banking Code of Practice (“Code”) and relevant provisions of the Code apply to this contract if you are an individual or a small business referred to in the Code.
19.2 You can request from us a copy of the Code and:
(a) information on our current interest rates and standard fees and charges relating to this contract, if any;
(b) general descriptive information concerning our banking services including for accounts with cheque access, general descriptive information about cheques; account opening procedures; our obligations regarding the confidentiality of your information; complaint handling procedures; bank cheques; and the advisability of you informing us promptly when you are in financial difficulty and of you reading the terms and conditions applying to each banking service we provide to you; and
(c) general descriptive information about the identification requirements of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), and the options available to you under the tax file number legislation.
20.1 We may assign or otherwise deal in any way with our rights under this contract. You agree that we may disclose any information or document we consider necessary to help us exercise these rights.
20.2 Your rights under this contract may not be assigned.
21.1 If a day on which a payment must be made is not a banking day, then the payment must be made no later than the next banking day.
21.2 We will apply payments to your account in any order we see fit.
21.3 For the purposes of payments under this contract a day ends at 4.00pm.
21.4 We may assign any date we consider appropriate to a debit or credit to the facility account (but, in the case of a debit, that date must not be earlier than the date on which the relevant transaction occurred). We may subsequently adjust such a debit or credit, or the balance owing on the account, so as to accurately reflect the legal obligations of you and us, subject to consumer credit legislation. If we do this we may make consequential changes (including to interest charges).
21.5 We also have the discretion to arrange the order of payments from your facility account.
22.1 How notices and other communications can be given
(a) Notices and other communications in connection with this contract must be in writing (unless this contract says otherwise).
(b) They can be given in any way permitted by law. This includes:
(i) via My Applications tab in Internet Banking or other customer specific communication channel with our website;
(ii) by email, SMS or other form of electronic or telegraphic transmission using the contact details last provided for that channel (in this clause 22.1, each called an “Electronic Alert”);
(iii) by post or fax using the contact details last provided for that channel; or
(iv) where given by us, via a newspaper or via a public page on our website.
If we give you a notice or other communication via our website, we’ll promptly tell you that it's available using one of the methods set out in (ii), unless we are not required to do so by law
See our website for more information about how and when we’ll use electronic channels to communicate with you.
When notices and other communications take effect
(c) Notices and other communications take effect from the time they are received unless a later time is specified in them.
(d) For the purposes of (c), notices and other communications are taken to be received as set out below.
(i) If we give a notice or other communication via My Applications tab in Internet banking or otherwise via our website and we’re required by law to give you an Electronic Alert, you are taken to have received the notice or other communication when you receive that Electronic Alert.
(ii) If we give you a notice or other communication via My Applications tab in Internet Banking or otherwise
via our website but we’re not required by law to give you an Electronic Alert, you are taken to have received that notice or other communication when it is first available for viewing on My Applications or otherwise on our website.
(iii) If you give us a notice or other communication via My Applications tab in Internet Banking or otherwise via our website, we are taken to have received that notice or other communication when it is first available for viewing on My Applications or otherwise on our website.
(iv) If a notice or other communication is sent by another form of electronic communication (eg email), the notice or other communication is taken to be received when the electronic communication enters the information system of the recipient.
(v) If a notice or other communication is sent by post, the notice or other communication is taken to be received on the date it would have been delivered in the ordinary course of post.
(vi) If a notice or other communication is sent by fax machine that produces a transmission report, the notice or other communication is taken to be received at the time shown in a transmission report that indicates that the whole fax was sent.
(vii) If a notice or other communication is published in a newspaper, the notice or other communication is taken to be received on the day of first publication.
22.2 Updating contact details
(a) If you change your contact details, including any electronic or physical address, you must notify us as soon as you can.
(b) Please contact us using the details set out on the last page of these General Terms. We’ll also publish our current contact details on our website.
23.1 To the extent that the National Credit Code or other legislation applies to this contract, if:
(a) that legislation would otherwise make a provision of this contract illegal, void or unenforceable; or
(b) a provision of this contract would otherwise contravene a requirement of that legislation or impose an obligation or liability which is prohibited by that legislation, that provision is to be read down subject to such legislation.
23.2 To the extent the National Credit Code or other legislation applies to this contract:
(a) our rights to demand any amounts from you and to exercise our rights and remedies against you are subject to the limitations on enforcement of this contract imposed by the legislation; and
(b) our rights and remedies under this contract are in addition to those given to a credit provider under the legislation.
23.3 Otherwise, to the extent allowed by the law, this contract prevails where there’s any inconsistency between this contract and any law.
23.4 If a provision of this contract is void, voidable or unenforceable by us, but would not be void, voidable or unenforceable if it were read down, it shall be read down accordingly.
23.5 If despite 23.4, a provision of this contract is still void, voidable or unenforceable by us:
(a) if the provision would not be void, voidable or unenforceable if a word was omitted from it, that word is severed; and
(b) in any other case, the whole provision is severed, and the remainder of this contract has full force and effect.
24 We may give you a certificate or formal statement signed by an officer about a matter or about an amount payable in connection with this contract. Subject to the section ‘How we may exercise our rights and discretions’, the certificate is conclusive evidence of the matter or amount, unless it is proved to be incorrect.
25 Except to the extent that you have a right of set off granted by law which cannot be excluded, all amounts payable to us must be paid by you in full without set off, counterclaim or deduction.
26.1 Subject to the section ‘How we may exercise our rights and discretions’, we may, without prior notice, set-off sums standing to the credit of any accounts you have with us towards satisfying any liability you have to us under this contract. To enable the set-off, we may convert any amount denominated in a foreign currency into Australian dollars at the spot rate of exchange quoted by us at or about that time.
26.2 Our rights in 26.1 are additional to any other rights we have to combine your accounts or set-off amounts in them.
27.1 Subject to the section ‘How we may exercise our rights and discretions’, if this contract says that an amount will be debited to a nominated account, and there are insufficient cleared funds in that account to cover that amount, we may, at our discretion, overdraw your nominated account.
27.2 Subject to the section ‘How we may exercise our rights and discretions’, if:
(a) this contract does not say which account of yours an amount payable by you will be debited to; or
(b) 27.1 applies, and we decide not to overdraw your nominated account,
we may debit that amount to any account of yours (including the loan account) we choose. We may also open an account in your name if one is required to allow us to make the debit. When choosing which account of yours to debit, or whether to open a new account in your name, we will exercise our discretion, in accordance with this section ‘Our right to debit other accounts’.
27.3 You irrevocably authorise us to debit your accounts as set out in this contract.
28.1 This contract is governed by the law of Victoria.
28.2 Any court cases involving this contract can be held in courts of any State or Territory of Australia. You and we submit to the non-exclusive jurisdiction of the courts of that place.
acceptance date means the date you accept the offer of credit from us as determined by the secton 'first-steps'.
amount of credit means the amount shown in your letter of offer.
annual percentage rate means the interest rate for this contract.
balance owing means, for a loan account at any time, the difference between all amounts debited and credited to that account at that time. When this amount is to be calculated for the end of a day, it includes all debits and credits assigned to that day.
balance owing on the loan accountmeans the balance owing.
banking day means a day other than a Saturday or a Sunday or a day gazetted as a public holiday throughout Australia.
Banking Code of Practice means the Banking Code of Practice, but before 1 July 2019 refers to the Code of Banking Practice (2013 version).
business day means a banking day.
contracted repayment amount means a repayment amount that you are contracted to pay under this contract, which is described in your letter of offer.
Corporations Act means the Corporations Act 2001 (Cwlth) and includes any consolidation, amendment, re-enactment or replacement of it.
Details means your letter of offer.
disclosure date means the offer date.
electronic communication means a message we or you send electronically, such as email, secure email or SMS.
expected amount outstanding means, on a particular day:
- The amount of credit;
- Less the total amount of scheduled principle and interest repayments that have already fallen due under this contract prior to that day;
- Plus the actual interest, fees, charges and expenses debited to the loan account under this contract.
facility account means any loan account.
General Terms means this document.
GST has the same meaning as in the A New Tax System (Goods and Services Tax Act 1999).
A person is insolvent if:
(a) they commit an act of bankruptcy within the meaning of the Bankruptcy Act 1966 (Cth);
(b) they are otherwise unable to pay their debt when they fall due; or
(c) something having a substantially similar effect to any of the things referred to above happens in connection with them under any law.
interest rate means the interest rate specified in the letter of offer as the interest rate.
loan account means the account used by us to record transactions in relation to the personal loan.
loan amount means the amount of credit.
loan term means the term set out in your letter of offer which commences on the settlement date.
NAB Personal Loan Cover insurance means consumer credit insurance by that name or such other consumer credit insurance which replaces it.
National Credit Code means the National Credit Code set out in Schedule 1 to the National Consumer Credit Protection Act 2009 and includes all regulations under that legislation.
nominated account means any account that we agree with you will be used as a nominated account for a particular purpose.
nominal amount outstanding means the expected amount outstanding.
offer date means the date specified in your letter of offer.
officer means any of our officers (as that expression is defined in the Corporations Act), any person who is authorised to act under our general power of attorney and any solicitor acting on our behalf.
payable in relation to an amount, means an amount which is currently payable, or will or may be payable in the future.
personal loan means the loan described in your letter of offer as a personal loan.
principal and interest repayment is the repayment of both interest and principal specified in your letter of offer.
settlement date in relation to a loan account means the first date we lend you any part of the amount of credit for that loan account.
this contract means the contract comprising your letter of offer and the general terms.
total amount owing means the total owing.
total owing means the total of the balance owing at any time, plus all accrued interest charges, default interest charges and other amounts which you must pay under this contract but which have not been debited to an account at that time.
trust means the trust described in your letter of offer.
we and us means the credit provider named in your letter of offer and includes our successors and assigns.
you means the person named in your letter of offer as ‘borrower’ and includes their successors and assigns. If there are more than one, you means each of them separately and every two or more of them jointly. In the description of the total owing you refers to you whether alone or jointly or jointly and separately. ‘Your’ has a corresponding meaning.
your letter of offer means the separate document called ‘your letter of offer’ which names you as ‘borrower’, forming part of this contract and, if we agree to change this contract, includes any notice we give you which sets out the details of the agreed change.
The singular includes the plural and vice versa.
A reference to:
(a) a document or agreement includes any variation or replacement of it;
(b) law means common law, principles of equity, State, Territory and Commonwealth laws and regulations and other instruments under them, and consolidations, amendments, re-enactments or replacements of any of them);
(c) ”person” includes any corporation, joint venture, partnership, trust, committee, incorporated or unincorporated organisation and authority;
(d) our consent or approval means our prior written consent or approval; and
(e) “writing” or “written” includes electronic communication.
The following information statement only applies to you if the National Credit Code applies to this contract.
This statement tells you about some of the rights and obligations of yourself and your credit provider. It does not state the terms and conditions of your contract.
If you have any concerns about your contract, contact your credit provider and, if you still have concerns, the AFCA scheme, or get legal advice.
1. How can I get details of my proposed credit contract?
Your credit provider must give you a precontractual statement containing certain information about your contract. The precontractual statement, and this document, must be given to you before:
- your contract is entered into; or
- you make an offer to enter into the contract;
whichever happens first.
2. How can I get a copy of the final contract?
If the contract document is to be signed by you and returned to your credit provider, you must be given a copy to keep.
Also, the credit provider must give you a copy of the final contract within 14 days after it is made. This rule does not, however, apply, if the credit provider has previously given you a copy of the contract document to keep
If you want another copy of your contract write to your credit provider and ask for one. Your credit provider may charge you a fee. Your credit provider has to give you a copy:
- within 14 days of your written request if the original contract came into existence one year or less before your request; or
- otherwise within 30 days of your written request.
3. Can I terminate the contract?
Yes. You can terminate the contract by writing to the credit provider so long as:
- you have not obtained any credit under the contract; or
- a card or other means of obtaining credit given to you by your credit provider has not been used to acquire goods or services for which credit is to be provided under the contract.
However, you will still have to pay any fees or charges incurred before you terminated the contract.
4. Can I pay my credit contract out early?
Yes. Pay your credit provider the amount required to pay out your credit contract on the day you wish to end your contract.
5. How can I find out the pay out figure?
You can write to your credit provider at any time and ask for a statement of the pay out figure as at any date you specify. You can also ask for details of how the amount is made up.
Your credit provider must give you the statement within 7 days after you give your request to the credit provider. You may be charged a fee for the statement.
6. Will I pay less interest if I pay out my contract early?
Yes. The interest you can be charged depends on the actual time money is owing. However, you may have to pay an early termination charge (if your contract permits your credit provider to charge one) and other fees.
7. Can my contract be changed by my credit provider?
Yes, but only if your contract says so.
8. Will I be told in advance if my credit provider is going to make a change in the contract?
That depends on the type of change. For example:
- you get at least same day notice for a change to an annual percentage rate. That notice may be a written notice to you or a notice published in a newspaper.
- you get 20 days advance written notice for:
- a change in the way in which interest is calculated; or
- a change in credit fees and charges; or
- any other changes by your credit provider;
except where the change reduces what you have to pay or the change happens automatically under the contract.
9. Is there anything I can do if I think that my contract is unjust?
Yes. You should first talk to your credit provider. Discuss the matter and see if you can come to some arrangement. If that is not successful, you may contact the AFCA scheme. The AFCA scheme is a free service established to provide you with an independent mechanism to resolve specific complaints.
The AFCA scheme can be contacted at
Telephone: 1800 931 678 (free call)
In writing to: Australian Financial Complaints Authority
GPO Box 3, Melbourne VIC 3001 Australia
Alternatively, you can go to court. You may wish to get legal advice, for example from your community legal centre or Legal Aid.
10. Do I have to take out insurance?
Your credit provider can insist you take out or pay the cost of types of insurance specifically allowed by law. These are compulsory third party personal injury insurance, mortgage indemnity insurance or insurance over property covered by any mortgage. Otherwise, you can decide if you want to take out insurance or not. If you take out insurance, the credit provider cannot insist that you use any particular insurance company.
11. Will I get details of my insurance cover?
Yes, if you have taken out insurance over mortgaged property or consumer credit insurance and the premium is financed by your credit provider. In that case the insurer must give you a copy of the policy within 14 days after the insurer has accepted the insurance proposal
Also, if you acquire an interest in any such insurance policy which is taken out by your credit provider then, within 14 days of that happening, your credit provider must ensure you have a written notice of the particulars of that insurance.
You can always ask the insurer for details of your insurance contract. If you ask in writing your insurer must give you a statement containing all the provisions of the contract.
12. If the insurer does not accept my proposal, will I be told?
Yes, if the insurance was to be financed by the credit contract. The insurer will inform you if the proposal is rejected.
13. In that case, what happens to the premiums?
Your credit provider must give you a refund or credit unless the insurance is to be arranged with another insurer.
14. What happens if my credit contract ends before any insurance contract over mortgaged property?
You can end the insurance contract and get a proportionate rebate of any premium from the insurer.
15. What do I do if I cannot make a repayment?
Get in touch with your credit provider immediately. Discuss the matter and see if you can come to some arrangement. You can ask your credit provider to change your contract in a number of ways:
- to extend the term of your contract and reduce payments; or
- to extend the term of your contract and delay payments for a set time; or
- to delay payments for a set time.
16. What if my credit provider and I cannot agree on a suitable arrangement?
If the credit provider refuses your request to change the repayments, you can ask the credit provider to review this decision if you think it is wrong.
If the credit provider still refuses your request you can complain to the AFCA scheme. Further details about this scheme are set out below in question 18.
17. Can my credit provider take action against me?
Yes, if you are in default under your contract. But the law says that you cannot be unduly harassed or threatened for repayments. If you think you are being unduly harassed or threatened, contact the AFCA scheme or ASIC, or get legal advice.
18. Do I have any other rights and obligations?
Yes. The law will give you other rights and obligations. You should also READ YOUR CONTRACT carefully.
If you have any complaints about your credit contract, or want more information, contact your credit provider. You must attempt to resolve your complaint with your credit provider before contacting the AFCA scheme. If you have a complaint which remains unresolved after speaking to your credit provider you can contact the AFCA scheme or get legal advice.
The AFCA scheme is a free service established to provide you with an independent mechanism to resolve specific complaints. The AFCA scheme can be contacted at:
Telephone: 1800 931 678 (free call)
Website: www.afca.org.au, opens in new window
In writing to: Australian Financial Complaints Authority
GPO Box 3, Melbourne VIC 3001 Australia
Please keep this information statement.
You may want some information from it at a later date.
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