Australian Capital Territory Consolidated Acts

CREDIT ACT 1985 - SECT 85AA

    (1)     If an application is made in accordance with section 86 and section 85 (2) would otherwise apply, the ACAT may make an order—

        (a)     in relation to some or all of the regulated contracts to which the application refers—that the debtor is liable to pay the whole of any amount that, apart from the contravention or failure referred to in section 85 (2) (a), (b) or (c), would have been payable by him or her under the contract; and

        (b)     that the credit provider is liable to pay a specified amount to the Territory.

    (2)     The ACAT shall not make an order under subsection (1) unless satisfied—

        (a)     that the contravention or failure referred to in section 85 (2) (a), (b) or (c) has occurred and ought not to be excused; and

        (b)     that, if the ACAT were to make a determination under section 85 (2) (a), (b) or (c) in relation to each regulated contract to which the order under subsection (1) would apply, the credit provider would incur costs in—

              (i)     identifying each contract; or

              (ii)     altering its records to take account of any reduction in liability under each contract; or

              (iii)     locating the debtor to whom a refund of money paid under each contract would be payable; or

              (iv)     refunding to the debtor money paid under each contract; or

              (v)     otherwise giving effect to any reduction in liability under each contract; and

        (c)     that, in relation to the majority of those contracts, the costs referred to in paragraph (b) (i), (ii), (iii) or (iv), or the sum of those costs, would be likely to be excessive having regard to the amount of the reduction in liability of the relevant debtor.

    (3)     In deciding the quantum of the amount referred to in subsection (1) (b), the ACAT shall have regard—

        (a)     to—

              (i)     the number of contracts to which the determination under subsection (1) (a) would apply; or

              (ii)     if the credit provider has not identified each such contract—an estimate of the number of such contracts; and

        (b)     to the costs referred to in subsection (2) (b) that would be, or would be likely to be, incurred by the credit provider if the ACAT were to make a determination under section 85 (2) (a), (b) or (c) in relation to each contract.

    (4)     Section 85 (4), (5), (6) and (7) apply to an order made under this section as if the order were a determination made under section 85.