Section 287 — Competition and Consumer Act 2010: Liability of suppliers and credit providers relating to non-linked credit contracts

(1) If a consumer who is a party to a non-linked credit contract suffers loss or damage as a result of a failure to comply with a guarantee that applies, under section 54, 55, 56, 57, 60, 61 or 62, in relation to a supply to which the contract relates, the credit provider who is a party to the contract is not under any liability to the consumer for the amount of the loss or damage. (2) Subsection (1) does not prevent the consumer from recovering that amount by action against the supplier of the goods or services to which the contract relates. (3) If a consumer who is a party to a non-linked credit contract suffers loss or damage as a result of a breach of a warranty that is implied in the contract by section 12ED of the Australian Securities and Investments Commission Act 2001, the supplier of the goods or services to which the contract relates is not under any liability to the consumer for the amount of the loss or damage. (4) Subsection (3) does not prevent the consumer from recovering that amount by action against the credit provider who is a party to the contract. (5) A non-linked credit contract is a contract that a consumer enters into with a credit provider for the provision of credit in relation to: (a) the supply by way of sale, lease, hire or hire-purchase of goods to the consumer where: (i) a person (the supplier) supplies the goods, or the causes the goods to be supplied, to the credit provider; and (ii) the credit provider is not a linked credit provider of the supplier; and (iii) prior negotiations or arrangements in relation to the acquisition of the goods were conducted or made with the consumer by or on behalf of the supplier; and (iv) the credit provider did not take physical possession of the goods before they were delivered to the consumer; or (b) the supply of services to the consumer by a person in relation to whom the credit provider is not a linked credit provider.