Hardship and unjust transactions

Under the National Credit Code a debtor has a right to provide notice of hardship to the credit provider and the credit provider is required to provide a response within specified timeframes. The credit provider also has the right to request information from the debtor about the debtor’s circumstances.

If the credit provider does not agree to change the contract, the debtor has the right to apply to the court and the court can make orders. A court can also reopen the transaction if satisfied that the contract was unjust when it was entered into, and also has power to make orders in relation to interest rate changes, establishment fees and early termination or prepayment fees if satisfied that they are unconscionable.

For more information about these matters, please refer to Hardship and unjust transactions.