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This is a Bill, not an Act. For current law, see the Acts databases.
BANKING AND CONSUMER CREDIT PROTECTION AMENDMENT (MOBILITY AND FLEXIBILITY) BILL 2011
2010-2011
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Banking and Consumer Credit
Protection Amendment (Mobility and
Flexibility) Bill 2011
No. , 2011
(Mr Bandt)
A Bill for an Act to amend the Banking Act 1959
and the National Consumer Credit Protection Act
2009 to improve basic banking services, and for
related purposes
i Banking and Consumer Credit Protection Amendment (Mobility and Flexibility) Bill 2011
No. , 2011
Contents
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
1
3 Schedule(s)
........................................................................................
1
Schedule 1--Amendment of the Banking Act 1959
2
Schedule 2--Amendment of the National Consumer Credit
Protection Act 2009
4
Banking and Consumer Credit Protection Amendment (Mobility and Flexibility) Bill 2011 No.
, 2011 1
1
2
3
4
A Bill for an Act to amend the Banking Act 1959
5
and the National Consumer Credit Protection Act
6
2009 to improve basic banking services, and for
7
related purposes
8
The Parliament of Australia enacts:
9
1 Short title
10
This Act may be cited as the Banking and Consumer Credit
11
Protection Amendment (Mobility and Flexibility) Act 2011.
12
2 Commencement
13
This Act commences on the 28th day after this Act receives the
14
Royal Assent.
15
3 Schedule(s)
16
Each Act that is specified in a Schedule to this Act is amended or
17
repealed as set out in the applicable items in the Schedule
18
concerned, and any other item in a Schedule to this Act has effect
19
according to its terms.
20
21
Schedule 1 Amendment of the Banking Act 1959
2 Banking and Consumer Credit Protection Amendment (Mobility and Flexibility) Bill
2011 No. , 2011
Schedule 1--Amendment of the Banking Act
1
1959
2
3
1 At the end of subsection 9(4)
4
Add "or the requirements of sections 9AG and 9AH".
5
2 After section 9
6
Insert:
7
9AG Variation of conditions of authorities--switching services
8
(1) APRA must, within 30 days of the commencement of this section,
9
vary the conditions of existing section 9 authorities to give effect to
10
this section and any new section 9 authority granted after that
11
commencement must include conditions that give effect to this
12
section.
13
(2) A section 9 authority must require an ADI to offer a switching
14
service to personal account holders.
15
(3) If a personal account holder advises the ADI (the old ADI) at
16
which he or she has one or more transaction accounts that he or she
17
is transferring those accounts to another ADI (the new ADI), the
18
new ADI's switching service must arrange for all direct debits and
19
direct credits made in relation to the personal account holder's
20
transaction accounts with the old ADI to be made instead in
21
relation to the personal account holder's transaction accounts with
22
the new ADI.
23
(4) The old ADI must:
24
(a) provide the new ADI with all the information necessary to
25
comply with subsection (3); and
26
(b) otherwise facilitate the transfer of the personal account
27
holder's transaction account or transaction accounts by all
28
reasonable means.
29
(5) In this section:
30
direct credit means a credit payment made by a third party to a
31
nominated transaction account in accordance with instructions
32
Amendment of the Banking Act 1959 Schedule 1
Banking and Consumer Credit Protection Amendment (Mobility and Flexibility) Bill 2011 No.
, 2011 3
provided to the third party by the person who is the account holder
1
of the transaction account.
2
direct debit means a debit payment drawn by a third party from a
3
nominated transaction account in accordance with instructions
4
provided to the third party by the person who is the account holder
5
of the transaction account.
6
switching service means the service provided by an ADI to:
7
(a) personal account holders who wish to transfer their
8
transaction accounts to another ADI; and
9
(b) personal account holders who have transferred their
10
transaction accounts from another ADI.
11
9AH Variation of conditions of authorities--term deposits
12
(1) APRA must, within 30 days of the commencement of this section,
13
vary the conditions of existing section 9 authorities to give effect to
14
this section and any new section 9 authority granted after that
15
commencement must include conditions that give effect to this
16
section.
17
(2) A section 9 authority must require an ADI that offers term deposits
18
to give written notice of the following to the holder of a term
19
deposit at least 15 working days before the end of the term:
20
(a) the interest rate and the term that will apply if the money in
21
the term deposit is automatically reinvested at the end of the
22
current term; and
23
(b) any special term interest rates, special interest rates or
24
additional bonus interest rates that are available from the ADI
25
at that time.
26
The information required by paragraphs (a) and (b) must be set out
27
clearly and prominently on the notice.
28
29
Schedule 2 Amendment of the National Consumer Credit Protection Act 2009
4 Banking and Consumer Credit Protection Amendment (Mobility and Flexibility) Bill
2011 No. , 2011
Schedule 2--Amendment of the National
1
Consumer Credit Protection Act 2009
2
3
1 After subsection 17(4) of the National Credit Code
4
Insert:
5
Unjust transactions and unconscionable interest and other charges
6
(4A) The contract document must contain information that expressly
7
advises the debtor of the provisions of this Code that relate to
8
review of:
9
(a) unjust transactions; and
10
(b) unconscionable interest and other charges;
11
and the debtor's rights under those provisions.
12
2 After subsection 17(15) of the National Credit Code
13
Insert:
14
Information about recovery of insurance premiums
15
(15A) If the credit provider knows that a related insurance contract of a
16
kind mentioned in section 147A, 148 or 149 is being entered into,
17
the contract document must expressly advise the debtor of the
18
debtor's rights under those sections.
19
3 After section 147 of the National Credit Code
20
Insert:
21
147A Termination of mortgage indemnity insurance contract if
22
credit contract terminated
23
(1) On termination of a credit contract, any mortgage indemnity
24
insurance contract relating to the contract in force is also
25
terminated.
26
(2) Within 28 days after a mortgage indemnity contract is terminated
27
by the operation of subsection (1), the credit provider must pay the
28
debtor or, credit the debtor with, a rebate of premium paid under
29
the contract.
30
Amendment of the National Consumer Credit Protection Act 2009 Schedule 2
Banking and Consumer Credit Protection Amendment (Mobility and Flexibility) Bill 2011 No.
, 2011 5
(3) The amount of the rebate must be an amount worked out in
1
accordance with the regulations. The regulations must provide for
2
actuarially fair amounts of rebate.
3
(4) The credit provider may, in turn, recover from the amount of the
4
rebate from the insurer.
5
(5) This section has effect despite any provision of the mortgage
6
indemnity insurance contract.
7
4 Subsection 149(1) of the National Credit Code
8
Repeal the subsection, substitute:
9
(1) If a credit contract is terminated before the end of its term, the
10
debtor is entitled to terminate any credit-related insurance contract
11
over mortgaged property in force, whether financed under the
12
credit contract or by other means, and recover from the insurer a
13
proportionate rebate of premium paid under the insurance contract.
14