Acknowledgements of Debt under the National Credit Act
The drafting of an Acknowledgement of Debt (AOD) in the new world that creditors have to face under the National Credit Act (NCA), has to be carefully done or there is a possibility that the AOD will constitute a credit facility, even though the original debt was an incidental credit agreement.
As has been previously discussed the onus and obligations of a credit provider on credit agreements, other then incidental credit agreements is very heavy. A poorly drafted AOD could novate what was originally an incidental credit agreement and make the debt a credit facility in which one would have to comply with pre-agreement disclosure and the AOD would have to include all the required clauses prescribed and face the hurdles of reckless credit granting.
So creditors have your standard AOD checked over by your attorneys and take advice on the issue before you fall foul of the NCA.