Related sale contracts

The National Credit Code and the Australian Consumer Law both have similar provisions which can impose liability on the “linked credit provider” of a supplier of goods or services.

Under the NCC a linked credit provider can be liable to the debtor for misrepresentations of the supplier regarding tied credit contracts and jointly liable with the supplier for misrepresentation, breach of contract or failure of consideration in relation to the sale contract.

This guidance note explains:

• • when a credit provider will be a linked credit provider of a supplier;
• • what is a tied loan contract or tied continuing credit contract;
• • how a linked credit provider can be liable to a debtor; and
• • defences to the above.

See Related sale contracts.