Australian Capital Territory Consolidated Acts

CREDIT ACT 1985 - SECT 59

    (1)     A credit provider shall, before the debtor first incurs a debt under a continuing credit contract, give a written notice to the debtor stating—

        (a)     any amount that, under the contract, is agreed as the maximum amount in relation to which, at any time, credit is agreed to be provided to the debtor under the contract; and

        (b)     the method by which the chargeable amount for each billing cycle is to be determined; and

        (c)     the terms and conditions (if any) on which, under the contract, a credit charge for a billing cycle may be made; and

        (d)     the method by which the amount of the credit charge for each billing cycle is to be determined; and

        (e)     the period after the end of a billing cycle within which the amount owed by the debtor at the end of the billing cycle is payable, including particulars of provisions requiring payment at a time or times during that period of any part or parts of that amount; and

        (f)     the annual percentage rate in relation to the contract and the manner of its application to the contract; and

        (g)     particulars of stamp duty (if any) payable in relation to or in relation to the contract or a mortgage payable under the contract by the debtor; and

        (h)     particulars of any mortgage relating to the contract that, as a condition of the making of the contract, has been or is agreed to be entered into; and

              (i)     the method (if any) by which, under the contract, provisions of the contract may be varied; and

        (j)     particulars of any other matters (if any) that are prescribed for this section; and

        (k)     the other terms and conditions (if any) to which the contract is subject.

    (2)     Subject to subsection (3), a credit provider that fails to comply with subsection (1) commits an offence.

Maximum penalty:

        (a)     for an individual—$1 000; and

        (b)     for a corporation—$5 000.

    (3)     It is sufficient compliance with subsection (1) if—

        (a)     the continuing credit contract was made by the acceptance of an offer in writing by the debtor to the credit provider to enter into the contract, being an offer including the matters required to be stated in a notice under subsection (1); and

        (b)     before the debtor incurs a debt under the contract, a copy of that offer is given to him or her for his or her own use.

    (4)     Nothing in this section requires the inclusion in a notice under subsection (1) of a statement that is not, or particulars that are not, applicable to the continuing credit contract.