Legislative Assembly for the ACT: 1998 Week 8 Hansard (27 October) . . Page.. 2257 ..
MR HUMPHRIES (continuing):
Members can see that this kind of regime has been long overdue. It has been good to see it operating effectively. I thank members for their support. I foreshadow that I will be moving amendments in the detail stage.
Question resolved in the affirmative.
Bill agreed to in principle.
Bill, by leave, taken as a whole
MR HUMPHRIES (Acting Chief Minister, Attorney-General, Minister for Justice and Community Safety and Minister Assisting the Treasurer) (11.55): Mr Speaker, I seek leave to move two amendments together.
MR HUMPHRIES: I move:
Page 2, line 11, clause 4, proposed new subsection 24A(1), omit `any amount under the credit contract', substitute `, at any time, any amount under the credit contract that would, but for this subsection, have been payable during the period of suspension or cancellation'.
Page 2, line 12, clause 4, proposed new subsection 24A(2), omit `any', substitute `an'.
I present a supplementary explanatory memorandum for the amendments. The problem which is being addressed here was raised by the Law Society in consultations we had with them about this legislation. They suggested that in proposed new subsection 24A(1) of the Bill the words "the debtor is not liable to pay any amount under the credit contract" could enable the avoidance by debtors of all payments under a credit contract and not just those arising in relation to credit provided during the suspension or cancellation of the credit provider's licence. That, of course, is not what is intended, and that would amount to an excessive penalty. We believe that that is not what the legislation should suggest. Therefore, the amendments make it clear that the debtor is not liable to pay any amount under the credit contract that, but for the new subsection 24A(1), would have been payable during the period of suspension or cancellation.
The amendments mean that a debtor who enters into a credit contract with a credit provider whilst the provider's licence is suspended or cancelled will not have to repay amounts under the credit contract that fall due during the period of cancellation or suspension only. In practical terms, for example, this means that where a credit provider whose licence is suspended for four months enters into a credit contract involving monthly repayments of $400 of principal and interest over two years the debtor will have no obligation to pay the $1,600, that is four payments of $400, due during the period