Payday Lenders Moratorium Act 2001

Payday Lenders Moratorium Act 2001

An Act to place a moratorium on the entry of payday lenders into the Tasmanian marketplace until 1 December 2002

Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

1.   Short title

This Act may be cited as the Payday Lenders Moratorium Act 2001 .

2.   Commencement

This Act commences on the day on which this Act receives the Royal Assent.

3.   Interpretation

(1)  In this Act –

contingent fee or charge means a fee or charge that depends on an event, the occurrence of which is determined by conduct of the debtor;

daily interest charge means an amount calculated by multiplying the amount of credit outstanding at the end of each day by the daily rate;

daily rate means the maximum annual percentage rate divided by 365.25;

fees and charges means fees and charges payable in connection with the provision of credit, but does not include –

(a) interest charges; or

(b) government charges; or

(c) contingent fees or charges;

government charge means a charge made by a government in connection with the provision of credit that is not a charge for the registration or discharge of a security interest;

maximum amount means the sum of the daily interest charges payable for each day that credit is provided;

maximum annual percentage rate means a rate of 60% a year.

(2)  For the purposes of this Act, credit is provided if –

(a) payment of a debt owed by a person to another person is deferred; or

(b) a person incurs a deferred debt to another person.

4.   Application of Act

(1)  This Act does not apply to credit to which the Consumer Credit (Tasmania) Code applies.

(2)  This Act applies only to credit –

(a) provided, or intended to be provided, wholly or predominantly for personal, household or domestic purposes; and

(b) provided in the course of, or as part of or incidental to, any business.

5.   Interest not to exceed maximum amount

A person must not provide credit if –

(a) the total amount of interest payable for providing the credit exceeds the maximum amount; or

(b) the total amount of fees and charges exceeds 10% of the total amount of credit provided.

Penalty:  Fine not exceeding 200 penalty units.

6.   Charge for cashing cheques

A person must not levy a charge for the exchange of a cheque for cash or for money's worth if the charge exceeds 10% of the value of the cheque.

Penalty:  Fine not exceeding 200 penalty units.

7.   Charge levied in contravention of Act

(1)  A charge levied in contravention of this Act is not recoverable by the person levying it.

(2)  If a person pays a charge levied in contravention of this Act, the person may recover the charge from the person to whom the charge was paid.

8.   Regulations

The Governor may make regulations for the purposes of this Act.

9.   Administration of Act

Until provision is made in relation to this Act by order under section 4 of the Administrative Arrangements Act 1990  –

(a) the administration of this Act is assigned to the Minister for Justice and Industrial Relations; and

(b) the department responsible to the Minister for Justice and Industrial Relations in relation to the administration of this Act is the Department of Justice and Industrial Relations.

10.   Expiry

This Act expires on 1 December 2002.

[Second reading presentation speech made in:

House of Assembly on 13 MARCH 2001

Legislative Council on 22 MARCH 2001]