Credit and debt
Your rights and obligations when you borrow money
What this chapter covers
This chapter includes information about the following:
- Credit contracts: Hire purchase, loans and other credit – This section explains:
- the new “lender responsibility principles”
- the information you must be given by the lender (or “creditor”)
- your rights to cancel the credit contract
- interest and credit fees
- when and how you can challenge an unfair credit contract
- rules about repayment, including when you can ask the lender or the courts to relax the contract terms because of unforeseen hardship.
- Guarantors – This section describes guarantors (people who agree to be responsible for someone else’s debt) and the rules and protections that apply to them.
- Debt recovery and enforcement – This section explains how lenders can recover debts through debt collection agencies and through the courts. It includes information about:
- how you can dispute that you owe a debt
- how agencies can report on your credit history
- your rights against debt collection agencies
- rules that say when and how your property can be seized (“repossessed”) to pay off a debt (this property could be either hire-purchase goods or goods that you’ve put up as security for the loan).
- When you can’t pay your debts: Bankruptcy and other options – This section explains bankruptcy and also two other processes: the no-asset procedure and summary instalment orders.