Section 282 — Competition and Consumer Act 2010: Counter-claims and offsets

(1) If proceedings in relation to a linked credit contract are brought against a consumer who is party to the contract by the linked credit provider who is a party to the contract, the consumer is not entitled to: (a) make a counter-claim in relation to the credit provider’s liability under section 278(1); or (b) exercise a right conferred by subsection (3) of this section in relation to that liability; unless the consumer claims in the proceedings against the supplier in respect of the liability, by third-party proceedings or otherwise. (2) Subsection (1) does not apply if: (a) the supplier has been dissolved or the winding up of the supplier has commenced; or (b) both of the following apply: (i) in the opinion of the court in which the proceedings are taken, it is not reasonably likely that a judgment obtained against the supplier would be satisfied; (ii) that court has, on the application of the consumer, declared that that subsection does not apply in relation to the proceedings. (3) In any proceedings in relation to a linked credit contract in which the linked credit provider who is a party to the contract claims damages or an amount of money from a consumer, the consumer may offset, in whole or in part, the consumer’s liability against any liability of the credit provider under section 278(1).