What can I do if I'm having temporary difficulties in making repayments?
If your difficulty in making your loan repayments is temporary then you may be
able to change your repayments
on the grounds of hardship under section 66 of
the Consumer Credit Code 1996.
To be eligible:
v The Consumer Credit Code must apply to your loan. Examples of loans that the Code would usually apply to are those for personal rather than business use such as: car loans, personal loans, home loans, and consumer leases (contract signed on or after 1/11/96) and credit cards (in use after 1/11/96). If you are unsure about this you can ring Consumer Credit Legal Centre
v You must be unable to pay because of illness, unemployment or other "reasonable cause".
v You must show that if the variation is granted you will be able to repay your loan within a reasonable time.
v A hardship variation can be made at any time but preferably before court proceedings have commenced. If court proceedings have commenced you should get urgent legal advice.
v Your loan (or credit limit) must have been for less than $340,670, (as at 18/11/04). Please note that this threshold is linked to the current cost of new houses in Australia and changes monthly. The current threshold is available from the "What's New" section of the Consumer Credit Code website at www.creditcode.gov.au
The above information came from the Consumer Credit Legal Centre
fact sheet on
Hardship variations. For the full fact sheet
click here
Redfern Legal Centre
fact sheet on
Hardship Variations to Loan Repayments
Click here
If your
lender refuses your application for a hardship variation or does not respond
you
can apply to the Commercial Division of the Consumer, Trader & Tenancy Tribunal
asking for an order that the lender agree to the variation you have asked for.
How to Apply for a Hardship Variation in the Consumer Tenancy and Trader Tribunal Click Here
To get the application form for CTTT (Consumer, Trader and Tenancy Tribunal) Click Here
Disclaimer: The information contained on this web site
is of a general nature. It is intended as a guide and you must not rely
on the information contained on this website for legal purposes. If you
have a legal problem you must seek independent legal
advice from a qualified legal practitioner. To the extent permissible by
law, the Lismore and District Financial Counselling
Service Inc. disclaims all liability for anything contained on or
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Please note that some of the information on this website applies to residents of NSW
Australia only.
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Sugar Industry Reform Program.