Consumer credit — Checklist for National Credit Code requirements for default notices for credit contracts and mortgages

Introductory note:
If a credit contract is regulated by the National Consumer Credit Protection Act 2009 (Cth) (NCCPA) (and the National Credit Code (Cth) (NCC), which is Sch 1 to the NCCPA), any default notice issued in respect to that credit contract must be compliant with the NCC.
The checklist below sets out the items that must be included in a default notice in order to comply with the NCC.
Other notes:
Practitioners should note:
	•	if a credit provider believes on reasonable grounds that the default is not capable of being remedied, the default notice need only specify the default (s 88(5), NCC);
	•	if an acceleration clause (s 92, NCC) is to operate, the default notice must contain an additional statement of the manner in which the liabilities of the debtor or mortgagor would be affected by the operation of the acceleration clause and also a statement of the amount required to pay out the contract as accelerated (s 93, NCC); and
	•	the NCC also prescribes that a default notice must include “any other information prescribed by the Regulations”: s 88(3)(j). Practitioners should ensure the default notice reflects any changes to the Regulations.