Loans approved prior to 1 July 2010
Whether a loan is governed by the National Consumer Code (NCC)
or Uniforms Credit Code (UCCC) is determined by the date of the
credit contract, not the date the loan is made. Sometimes the loan
contract states that the date of the credit contract is the date of
settlement (in which case settlement is the relevant date), but in
other cases it is the date of the contract (ie the date the
borrower dates the contract when they sign). In this respect the
terms of the individual credit contract are relevant when
determining the date of the contract.
From 1 July 2010 (1 January 2011 for ADIs and RFCs), a lender
must not make a loan unless it has complied with the responsible
lending (unsuitable loans) provisions of the NCC. Technically, this
will mean all pipeline loans made pursuant to contracts dated after
1 July 2010 will need to have passed the 'not unsuitable'
test. This requires a written assessment (which can be
