Australian Capital Territory Consolidated Acts

CREDIT ACT 1985 - SECT 83

    (1)     A credit provider shall, unless the credit provider and debtor otherwise agree, apply payments received under a regulated contract—

        (a)     for a regulated credit sale contract or a regulated loan contract—

              (i)     first, in payment of default charges (if any); and

              (ii)     second, in payment of the accrued credit charge; and

              (iii)     third, in payment of deferral charges (if any); and

              (iv)     fourth, in payment of the outstanding balance of the amount financed; and

              (v)     fifth, in payment of enforcement expenses; and

        (b)     for a regulated continuing credit contract—

              (i)     first, in payment of the credit charge; and

              (ii)     second, in payment of any other amount owed under the contract by the debtor to the credit provider.

    (2)     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.