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Factsheet No.12

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Credit and Debt Limitation Periods

Following is a BRIEF summary of some of the limitation periods applying in credit and debt matters.

Note that limitation periods are altered by Parliaments on a regular basis. You should always check with a lawyer before acting upon the limitation periods set out below.

Australian Banking and Financial Services Industry Ombudsman

A complainant should first try to resolve their complaint with the bank. If the ABFSIO accepts the complaint, it will write to the bank; and the bank has 30 days to respond.

Contract

A party to a contract has 6 years from the date of a breach of contract, to sue the breaching party.

(See also Unjust contracts, below)

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Consumer Trader and Tenancy Tribunal (CTTT)

Consumers have three years to take action against a creditor in the Consumer Trader and Tenancy Tribunal for loss or damage. The three years runs from the date the cause of action accrued (e.g. you incurred the loss). [s.7 Consumer Claims Act]

An application for rehearing must be made within 14 days after the date of notification of the CTTT's order [s.22 CTTT Regulation 2002]

An appeal can be made to the Supreme Court against a CTTT decision, on an error of law (by leave); jurisdictional error; or denial of procedural fairness.

Debt

A creditor has 6 years to sue you for the alleged debt (from the date when you allegedly breached the contract). [Limitation Act section 14(1)(b)]

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Deeds

Parties to Deeds (e.g. of Release) have 12 years to sue on a breach of the Deed

Financial Industry Complaints Service Ltd (FICS)

Won't take anything before Dec 1999. Complainant must have raised the issue with the financial services industry member & complaint has not been resolved; or 45 days have passed since the complaint was given to the member; or 90 days have passed if the member promptly notifies the complainant that it requires 90 days.

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Insurance

An insured has 3 months to make a complaint to the Insurance Ombudsman.

State Debt Recovery Office

You have 12 months to apply for annulment of fines

Superannuation

A superannuant must first make a complaint to his/her fund. If the superannuant is not satisfied with the response or has not received a response within 90 days, he/she can lodge a complaint with the Superannuation Complaints Tribunal.

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Trade Practices Act

Under the Trade Practices Act, you have three to six years to bring legal action against a creditor [section 52, misleading and deceptive conduct or 51AB, unconscionable conduct].

The limitation period depends on whether your right to sue occurred before or after 26 July 2001 [clauses 21 and 32, Schedule 1 TP Amendment Act (No. 1) 2001]. If on or after 26 July 2001, the limitation period is 6 years, provided that the previous 3 year limitation period had not already expired. If before 26/7/01, the limitation period is 3 years [ss. 82(2) and 87(1CA) TPA].

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Unjust contracts

If a contract can be characterised as unjust or unconscionable, then you have either:

  1. 2 years from the date when the contract(s) was made or an obligation had to be performed under the contract (e.g. payment made); or
  2. during existing court proceedings (Contracts Review Act sections 7, 9 , 16 )

to sue the other party.

 

Under the Consumer Credit Code, you have 2 years from rescission or discharge of the contract to bring an action seeking an order that the contract was unjust.

See also Trade Practices Act (above)

Uniform Consumer Credit Code

30 days written notice must be given before repo [s.80]

If the contract(s) you signed could be characterised as a credit contract, and you were to seek a hardship variation, then you have 2 years from the date of rescission of the contract (or discharge of the contract) to seek a remedy in court.

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Telecommunications Industry Ombudsman

A complainant has 12 months to make a complaint to the TIO, from the date the circumstances causing the complaint became known to the complainant. However, the TIO has a discretion to extend the period.

 

Produced by Redfern Legal Centre.
This factsheet is no substitute for legal advice. If you have a problem please seek legal advice from your local community legal centre

Last updated January 2006

 

 
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