Australian Capital Territory Consolidated Acts Australian Capital Territory Consolidated Acts(1) If, because of a contravention of this Act or the Administration Act by a credit provider, a debtor is not liable to pay to the credit provider under a regulated contract an amount that, apart from the contravention, he or she would have been liable to pay under the contract, the credit provider may apply to the ACAT for an order increasing the liability of the debtor to the credit provider.
(2) If an application is made to the ACAT under this section in relation to a regulated contract, the ACAT may, after consideration of the relevant circumstances, including the conduct of the credit provider and the debtor and loss or damage (if any) suffered by the debtor—
(a) for a credit sale contract or a loan contract and a contravention of the Administration Act, section 7 (1)—
(i) if the ACAT is satisfied that the contravention has occurred and ought reasonably to be excused—determine that the debtor is liable to pay the amount financed under the contract and the whole or any part of the credit charge that it determines; or
(ii) if the ACAT is satisfied that the contravention has occurred but ought not to be excused—determine not to increase the liability of the debtor or determine that the debtor is liable to pay the whole or any part that it determines of the amount financed under the contract and the whole or any part of the credit charge that it determines;
(b) for a regulated continuing credit contract and a contravention of the Administration Act, section 7 (1)—
(i) if the ACAT is satisfied that the contravention has occurred and ought reasonably to be excused—determine that the debtor is liable to pay the whole or any part of the amount owing or the credit charge that it determines; or
(ii) if the ACAT is satisfied that the contravention has occurred but ought not to be excused—determine not to increase the liability of the debtor or determine that the debtor is liable to pay the whole or any part of the amount owing or the credit charge that it determines; and
(c) for a regulated contract and a contravention of this Act or a provision of the Administration Act, other than the Administration Act, section 7 (1)—determine not to increase the liability of the debtor or determine that the debtor is liable to pay the whole or any part of the credit charge under the contract that it determines.
(3) If, under this section, the ACAT determines the amount that a debtor is liable to pay after a contravention of or a failure to comply with this Act by a credit provider, the ACAT shall ensure that, in determining that amount, the amount that the debtor would have been liable to pay apart from the contravention or failure is reduced by an amount that is not less than the amount of loss or damage (if any) suffered by the debtor as a result of the contravention or failure.
(4) If, under this section, the ACAT determines the liability of the debtor under a regulated contract in consequence of a contravention of or a failure to comply with this Act by the credit provider, the liability of the debtor to the credit provider under the contract is the liability determined by the ACAT instead of the liability that, apart from the determination, the debtor would have had to the credit provider under the contract.
(5) The ACAT may, when making a determination under this section of the amount that a debtor is liable to pay, give the parties to the proceedings any directions that the ACAT considers appropriate relating to the payment of the amount owed by the debtor or by the credit provider as a result of the determination.
(6) A determination made by the ACAT under this section of the liability of a debtor has effect only in relation to the contravention or failure to which the determination relates.
(7) Nothing in this section affects the liability of a person to be convicted of an offence against this Act.