Glossary of terms

acceleration clause a clause in a mortgage contract that allows the lender, if there is a default, to claim not only the missed payments but the whole outstanding amount of the loan

adjournment postponement of a court or tribunal hearing, either to a specified date or indefinitely

ADR alternative dispute resolution

Affidavit a written statement sworn to be true in the presence of a specially authorised person, such as a Justice of the Peace

Affidavit of service a sworn statement that documents have been personally delivered to a party in a court case

Affidavit in support a sworn statement containing information that supports a person’s claim in a court or tribunal

alternative dispute resolution a way of resolving disputes without going to court; the term covers EDR (external dispute resolution) and IDR (internal dispute resolution)

amortisation the ongoing reduction of a debt through regular payments of principal and interest

appeal proceedings brought in a higher court to try to get the decision of a lower court changed

ASIC Australian Securities & Investments Commission

business purpose declaration a signed document under s 11 of the Consumer Credit Code, stating that a loan is to be used wholly or predominantly for business and/or investment purposes

code of practice a set of standards that the members of a profession or business agree to follow in the conduct of their professional or business activities

conciliation a procedure for resolving disputes in which an independant third party tries to help the disputing parties reach agreement

conciliation conference a meeting between disputing parties and/or their representatives in which they try to reach agreement with the help of a neutral third party (a conciliator)

CTTT Consumer, Trader & Tenancy Tribunal

COSL Credit Ombudsman Service Limited

CUDRC Credit Union Dispute Resolution Centre

cross-examination the questioning of a witness by the other side in a court case

cross-claim a legal action brought against a party who is already taking legal action against the person bringing the cross-claim

deed of release a formal document containing a binding agreement not to take certain action, such as bringing legal proceedings

default notice a formal notice alleging a failure to make payments required under the mortgage contract

defence a legal response to the allegations in a Statement of Claim, explaining why the claim should not succeed; the document in which this response is set out
deponent person swearing that an affidavit is true

directions hearing a hearing in which the court makes orders for preparation for a final hearing at which a case can be decided

discharge of mortgage the end of a mortgage, because it has been paid off or for any other reason

EDR external dispute resolution

external dispute resolution a way of trying to resolve disputes through an independent third party without going to court

FBAA Finance Broking Association of Australia

FCDRC Financial Co-operative Dispute Resolution Centre

filing (of documents) delivering documents to a court or tribunal in accordance with its procedures

finance broker a person who acts professionally as an intermediary to arrange a loan between a lender and a borrower

financial counsellor a person who provides financial advice in a professional capacity
FOS Financial Ombudsman Scheme

hardship variation application an application to a court or tribunal to have the terms of a credit contract varied on hardship grounds

harassment deliberately threatening or annoying behaviour from a lender or a debt collector employed by them

hearsay evidence evidence from a witness about something that the witness has not personally seen or heard

ICAA Institute of Chartered Accountants in Australia

internal dispute resolution the process of trying to resolve a dispute directly with the organisation complained about through its own internal procedures

IDR internal dispute resolution

judgment creditor the lender, after the court or tribunal has given a judgment in their favour

judgment for possession a judgment by the court that allows the lender to take possession of the borrower’s home

MFAA Mortgage & Finance Association of Australia

mortgage a transfer of property as security for a loan (usually used to buy the property); the property is transferred by the mortgagor (the borrower) to the mortgagee (the lender)

Notice of Motion a court document used to apply for court orders

process server a person whose job it is to serve (deliver) court documents

registry a branch of a court or tribunal where documents are lodged and recorded

rules of evidence a set of rules contained in the NSW and Commonwealth Evidence Acts that specify what information will be accepted as evidence in court

serving (of documents) the delivery of documents to someone who is a party to proceedings in a court or tribunal in accordance with processes set out in legislation

sheriff an officer of the court who enforces court orders

Statement of Claim a court document setting out the details of a claim that a person wishes to enforce through the courts

stay of enforcement a court order stopping court proceedings, for a specified period or indefinitely

summons a court order requiring a person to attend court as a witness or to provide documents, or both (often called a subpoena)

writ of possession a court document authorising the sheriff to remove the borrower from their home after a judgment in the lender’s favour