Australian Capital Territory Consolidated Acts

CREDIT ACT 1985 - SECT 72

    (1)     If under a credit sale contract or a loan contract the debtor does not pay an amount payable under the contract when it is due, the credit provider shall not make a charge in relation to the failure to pay unless—

        (a)     there is a term in the contract to the effect that such a charge may be made and the charge does not exceed—

              (i)     the amount determined by applying to the daily balance of the amount due and unpaid—

    (A)     if a credit charge is payable under the contract—the daily percentage rate under the contract; or

    (B)     if a credit charge is not payable under the contract—the rate prescribed for this section; or

              (ii)     the amount determined by applying to the amount unpaid the rate specified in the contract for the purposes of such a charge;

whichever is the lesser; and

        (b)     the relevant sale contract or loan contract is a credit sale contract or loan contract if the whole or part of the credit charge under the contract is a predetermined credit charge.

    (2)     A credit provider that contravenes subsection (1) commits an offence.

Maximum penalty:

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

        (b)     for a corporation—$5 000.

    (3)     A credit provider that makes a charge in relation to—

        (a)     the failure to pay an amount payable under a regulated continuing credit contract; or

        (b)     a charge under subsection (1) that is unpaid;

commits an offence.

Maximum penalty:

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

        (b)     for a corporation—$5 000.

    (4)     Nothing in this section affects the right of a credit provider to make or require payment of an accrued credit charge, a deferral charge or an enforcement expense.