Advantages for consumers

As noted above, the Code provides a number of important protections for borrowers, mortgagors and guarantors. In most cases these include:

the right to seek money paid as a 'civil penalty' as a result of a credit provider failing to include necessary information in the credit contract (s. 15 and Part Six);
the right to pay off the credit at any time (s. 75) although the credit provider is entitled to charge a fee;
the right to get a written statement from the credit provider detailing how your credit liability has arisen (s. 36);
the right to comprehensive, regular written statements of the state of your account (s. 31);
the right to request a statement within 14 days (for credit arising within the year) or within 30 days for credit extending further (s. 34);
the right to apply to VCAT for a determination regarding disputed enforcement expenses (s. 99);
the right to apply to VCAT in certain circumstances to postpone recovery proceedings or vehicle repossession (ss 68(3) and 88); and
the right to have any claims arising from breaches of the Code heard in VCAT which avoids the expense of court action.

The Code also allows a borrower who is suffering temporary financial hardship to ask the credit provider to vary the terms of the contract, and if the credit provider refuses to apply to VCAT for the variation (ss. 66 and 68).

In addition to these rights the Code places restrictions on credit providers, particularly in the context of default and repossession and sale of mortgaged goods. If a credit provider fails to comply with these restrictions the borrower may be entitled to compensation, and can ask Consumer Affairs Victoria (CAV) to investigate the breach.