JACARANDA FINANCE PTY LTD
FORM 5 – INFORMATION STATEMENT
THINGS YOU SHOULD KNOW ABOUT YOUR PROPOSED CREDIT CONTRACT
This statement tells you about some of the rights and obligations of yourself and Jacaranda Finance Pty Ltd (“Jacaranda Finance”), your credit provider. It does not state the terms and conditions of your contract.
If you have any concerns about your contract, contact Jacaranda Finance and, if you still have concerns, Jacaranda Finance’s external dispute resolution scheme, or get legal advice.
1 How can I get details of my proposed credit contract?
Jacaranda Finance must give you a pre-contractual statement containing certain information about your contract. The pre-contractual statement, and this document, must be given to you before–
- your contract is entered into; or
- you make an offer to enter into the contract;
whichever happens first.
2 How can I get a copy of the final contract?
If the contract document is to be signed by you and returned to Jacaranda Finance, you must be given a copy to keep. Also, Jacaranda Finance must give you a copy of the final contract within 14 days after it is made. This rule does not, however, apply if Jacaranda Finance has previously given you a copy of the contract document to keep.
If you want another copy of your contract, write to Jacaranda Finance and ask for one. Jacaranda Finance may charge you a fee. Jacaranda Finance has to give you a copy–
- within 14 days of your written request if the original contract came into existence 1 year or less before your request; or
- otherwise within 30 days of your written request.
3 Can I terminate the contract?
Yes. You can terminate the contract by writing to Jacaranda Finance so long as you have not obtained any credit under the contract. However, you will still have to pay any fees or charges incurred before you terminated the contract.
4 Can I pay my credit contract out early?
Yes. Pay Jacaranda Finance the amount required to pay out your credit contract on the day you wish to end your contract. Please note that this will include the full amount borrowed, plus any fees and charges incurred up to that date and may also include fees covering the remainder of the term.
5 How can I find out the payout figure?
You can write to Jacaranda Finance at any time and ask for a statement of the payout figure as at any date you specify. You can also ask for details of how the amount is made up.
Jacaranda Finance must give you the statement within 7 days after you give your request to Jacaranda Finance. You may be charged a fee for the statement.
6 Will I pay less interest if I pay out my contract early?
Yes you may, where interest is charged, as stated in the credit provider’s contract. However, where you are borrowing under a credit contract where fees are charged and not interest, this will not apply. However, you may have to pay an early termination charge (if your contract permits your credit provider to charge one) and other fees.
7 Can my contract be changed by my credit provider?
Yes, but only if your contract says so.
8 Will I be told in advance if my credit provider is going to make a change in the contract?
Jacaranda Finance will not change your contract without your permission except where the change reduces what you have to pay or the change happens automatically under the contract.
9 Is there anything I can do if I think that my contract is unjust?
Yes. You should first talk to your credit provider (contact Jacaranda Finance’s Dispute Resolution Manager). Discuss the matter and see if you can come to some arrangement.
If that is not successful, you may contact Jacaranda Finance’s external dispute resolution scheme. External dispute resolution is a free service established to provide you with an independent mechanism to resolve specific complaints. Your credit provider’s external dispute resolution provider is Credit and Investment Ombudsmen (CIO) in Sydney. Contact them via phone on 1800 138 422, fax on 02 9273 8440, in writing to PO Box A252, Sydney South, NSW 1235 or through their website: www.cio.org.au
Alternatively, you can go to court. You may wish to get legal advice, for example from your community legal centre or Legal Aid. You can also contact ASIC, the regulator, for information on 1300 300 630 or through ASIC’s website at http://www.asic.gov.au
10 Do I have to take out insurance?
You do not have to take out any credit/loan insurance.
11 If my contract says I have to give a mortgage, what does this mean?
A mortgage means that you give Jacaranda Finance certain rights over any property you mortgage. If you default under your contract, you can lose that property and you might still owe money to Jacaranda Finance.
12 Should I get a copy of my mortgage?
Yes. It can be part of your credit contract or, if it is a separate document, you will be given a copy of the mortgage within 14 days after your mortgage is entered into. However, you need not be given a copy if the credit provider has previously given you a copy of the mortgage document to keep.
13 Is there anything that I am not allowed to do with the property I have mortgaged?
The law says you cannot assign or dispose of the property unless you have Jacaranda Finance’s or the court’s permission. You must also look after the property. Read the mortgage document as well. It will usually have other terms and conditions about what you can or cannot do with the property.
14 What can I do if I find that I cannot afford my repayments and there is a mortgage over property?
See the answers to questions 18 and 19.
Otherwise you may–
- if the mortgaged property is goods — give the property back to Jacaranda Finance, together with a letter saying you want Jacaranda Finance to sell the property for you;
- sell the property, but only if Jacaranda Finance gives permission first; OR
- give the property to someone who may then take over the repayments, but only if Jacaranda Finance gives permission first.
If Jacaranda Finance won’t give permission, you can contact their external dispute resolution scheme for help. You should understand that you may owe money to Jacaranda Finance even after the mortgaged property is sold.
15 Can my credit provider take or sell the mortgaged property?
Yes, if you have not carried out all of your obligations under your contract.
16 If my credit provider writes asking me where the mortgaged goods are, do I have to say where they are?
Yes. You have 7 days after receiving Jacaranda Finance’s request to tell Jacaranda Finance. If you do not have the goods you must give Jacaranda Finance all the information you have so they can be traced.
17 When can my credit provider or its agent come into a residence to take possession of mortgaged goods?
Jacaranda Finance can only do so if it has the court’s approval or the written consent of the occupier which is given after the occupier is informed in writing of the relevant section in the National Credit Code.
18 What do I do if I cannot make a repayment?
Get in touch with Jacaranda Finance immediately. Discuss the matter and see if you can come to some arrangement. You can ask Jacaranda Finance to change your contract in a number of ways–
- to extend the term of your contract and reduce payments; or
- to extend the term of your contract and delay payments for a set time; or
- to delay payments for a set time.
19 What if my credit provider and I cannot agree on a suitable arrangement?
If Jacaranda Finance refuses your request to change the repayments, you can ask Jacaranda Finance to review this decision if you think it is wrong.
If Jacaranda Finance still refuses your request you can complain to the external dispute resolution scheme that your credit provider belongs to. Further details about this scheme are set out below in question 25.
20 Can my credit provider take action against me?
Yes, if you are in default under your contract. But the law says that you cannot be unduly harassed or threatened for repayments. If you think you are being unduly harassed or threatened, contact the credit provider’s external dispute resolution scheme or ASIC, or get legal advice.
21 Do I have any other rights and obligations?
Yes. The law will give you other rights and obligations. You should also READ YOUR CONTRACT carefully.
IF YOU HAVE ANY COMPLAINTS ABOUT YOUR CREDIT CONTRACT, OR WANT MORE INFORMATION, CONTACT YOUR CREDIT PROVIDER. YOU MUST ATTEMPT TO RESOLVE YOUR COMPLAINT WITH YOUR CREDIT PROVIDER BEFORE CONTACTING YOUR CREDIT PROVIDER’S EXTERNAL DISPUTE RESOLUTION SCHEME. IF YOU HAVE A COMPLAINT WHICH REMAINS UNRESOLVED AFTER SPEAKING TO YOUR CREDIT PROVIDER YOU CAN CONTACT YOUR CREDIT PROVIDER’S EXTERNAL DISPUTE RESOLUTION SCHEME OR GET LEGAL ADVICE.
EXTERNAL DISPUTE RESOLUTION IS A FREE SERVICE ESTABLISHED TO PROVIDE YOU WITH AN INDEPENDENT MECHANISM TO RESOLVE SPECIFIC COMPLAINTS. YOUR CREDIT PROVIDER’S EXTERNAL DISPUTE RESOLUTION PROVIDER IS CREDIT AND INVESTMENT OMBUDSMAN (CIO) IN SYDNEY. THEY CAN BE CONTACTED BY PHONE ON 1800 138 22, FAX ON 02 9273 8440, IN WRITING TO : P 0 BOX A252, SYDNEY SOUTH, NSW 1235 OR THROUGH THEIR WEBSITE WWW.CIO.ORG.AU
PLEASE KEEP THIS INFORMATION STATEMENT. YOU MAY WANT SOME INFORMATION FROM IT AT A LATER DATE.