Australian Capital Territory Consolidated Acts

CREDIT ACT 1985 - SECT 80

If, under a credit sale contract or a loan contract—

        (a)     the whole of the credit charge is a predetermined credit charge or an estimated credit charge; and

        (b)     the amount of the credit charge stated in the contract differs from the amount determined by applying, according to the actuarial method, the annual percentage rate stated in the contract to the amount financed by an amount that exceeds 1% of the amount so stated in the contract;

the liability of the debtor under the contract in relation to the credit charge is a liability—

        (c)     if the amount so determined is less than the amount so stated—to pay the amount determined by applying the annual percentage rate to the unpaid balance of the amount financed; or

        (d)     if the amount so determined exceeds the amount so stated—to pay the amount determined in accordance with the contract as if the annual percentage rate were the rate that, when applied to the unpaid balance of the amount financed, yields an amount equal to the amount so stated.