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Daniel, Solicitor
Category: Australia Law
Satisfied Customers: 4844
Experience:  Bachelor of Laws (dist) Graduate Diploma in Legal Practise. Admitted NSW Supreme Court / High Court
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If i have taken out a credit facility for my business, and

Customer Question

hi pearl.. if i have taken out a credit facility for my business, and signed a personal guarantee, does the personal guarantee fall within the national consumer credit code. if not, what is the credit code/lending code of conduct for business lending?
JA: Because consumer protection law varies from place to place, can you tell me what state this is in?
Customer: Queensland
JA: Has anything been filed or reported?
Customer: no, not that i am aware of. i have not been served. they have sent a demand for payment - but it has been (almost) 6 years since last payment or acknowledgement of debt so statue of limitations is about to expire - hence why they are chasing. They are threatening to default list me, which i want to avoid.
JA: Anything else you want the lawyer to know before I connect you?
Customer: provider is not a member of CIO or FOS, or does not state on the contract that they have an australian financial services licence
Submitted: 1 month ago.
Category: Australia Law
Expert:  Daniel replied 1 month ago.

So what is the issue exactly?
You signed of as the personal guarantee? Then is it not the case that your are liable for debt if they are not paid?

Customer: replied 1 month ago.
It appears that it is. The contract is with Bartercard. They provided a "credit" in bartercard dollars on my account, which we used some, on the premise that business would be returned to us to "pay down" that credit in trade - which never happened. Now they are claiming I owe them in "real money" for the full amount plus fees. The are demanding payment within 24 hours or they will default me. They have not provided there AFSL nor are they a member of a dispute resolution scheme. The whole thing seems very dodgy. Basically I dont want to pay them, due to the misrepresentation that occured at contract sign up. The contract is very thin and I am sure has holes in it.
Expert:  Daniel replied 1 month ago.

Seems sketchy, in respect of the matter, the credit code is applicable, HOWEVER it would also be common law, contract law principals also apply.

Issue, you are running a business. A court would therefore considering you to be someone with sound business mind, not just the average person.
Thus, you may still be liable to pay the amount as a business orientated person would have done the searches before signing up.

Negotiate with them. See if a settlement can be reached.

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Customer: replied 1 month ago.
it IS covered by the consumer credit code... ?
Expert:  Daniel replied 1 month ago.

Well it may well be, but the credit code is tailored towards the consumer, not a business owner.

It would be more so in respect of contract law legal issues.

Customer: replied 1 month ago.
thanks daniel
so the credit code applies if the personal guarantor is being sought after to pay the debt ? can you also advsie if there is a business credit code of conduct - like a consumer credit code for business ?
Expert:  Daniel replied 1 month ago.

There is not no.

It will all be in respect to contract law and the conditions with respect of the debt being legally binding.

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