Australian Capital Territory Consolidated Acts

CREDIT ACT 1985 - SECT 74

    (1)     If a debtor because of illness, unemployment or other reasonable cause is unable reasonably to discharge his or her obligations under a regulated contract, the debtor may, if he or she reasonably expects that he or she would be able to discharge his or her obligations—

        (a)     if the period of the contract were extended and the amount of each payment due under the contract accordingly reduced (without a change being made to the annual percentage rate); or

        (b)     if the dates for payment of amounts due under the contract during a specified period were varied (without a change being made to the annual percentage rate); or

        (c)     if the period of the contract were extended and the dates for payment of amounts due under the contract during a specified period were varied (without a change being made to the annual percentage rate);

apply to the credit provider for a variation of the contract.

    (2)     If a credit provider to whom application is made by a debtor under subsection (1) refuses to vary a regulated contract in accordance with the application, the debtor may apply to the commissioner for assistance in negotiating a variation of the contract.

    (3)     If an application is made under subsection (2), the commissioner shall seek the views of the credit provider and any mortgagee or guarantor and, after giving them a reasonable opportunity to be heard and making any other inquiries that the commissioner considers appropriate, determine whether or not to seek to arrange with the credit provider a variation of the regulated contract and, if the commissioner seeks such a variation and is unable to reach agreement with the credit provider, the commissioner shall refer the application to the ACAT.

    (4)     The ACAT may, if it receives an application referred to it under subsection (3) and has given the applicant, the credit provider and any mortgagee or guarantor an opportunity to be heard, order, or refuse to order, a variation of the contract to which the application relates and, if it orders such a variation, may make any other orders that it considers appropriate.

    (5)     If an order of the ACAT under subsection (4) is in force, a credit provider under a contract to which the order applies may apply to the ACAT for a variation of the order.

    (6)     The ACAT may, if it receives an application under subsection (5), make any variation of the order to which the application relates that it considers appropriate or may refuse to vary the order.

    (7)     If an application for variation of a regulated contract is referred to the ACAT under subsection (3), the credit provider is not entitled to institute proceedings, or exercise a right, under the contract, or a mortgage that relates to the contract, before the ACAT has made or refused an order under subsection (4).

    (8)     An order in force under this section, including such an order as varied from time to time, has effect according to its tenor.