New South Wales Consolidated Acts

CREDIT ACT 1984 - SECT 11

11 Credit charge

(1) For the purposes of this Act, a reference to a credit charge:

(a) in relation to a credit sale contract or a loan contract, is a reference to the amount by which the amount payable under the contract by the debtor to the credit provider or a person on the credit provider’s behalf (not including amounts of deferral charges, default charges or enforcement expenses) exceeds the amount financed, and

(b) in relation to a billing cycle of a continuing credit contract, is a reference to a credit charge within the meaning of section 54.

(2) For the purposes of the definition of "accrued credit charge" in relation to a credit sale contract or a loan contract, the amount of the credit charge which has accrued at a particular time may be calculated:

(a) by adding together the amounts ascertained by applying the daily percentage rate to the unpaid daily balances (being daily balances before that time):

(i) in the case of a credit sale contract-of the amount financed, or

(ii) in the case of a loan contract-of the amount financed other than any part of the amount agreed under the contract to be lent that has not been lent at that time,

(b) where Schedule 1 applies to the credit sale contract or loan contract-in accordance with the formula set out in that Schedule, or

(c) where an applicable method is prescribed for the purposes of this subsection-in accordance with that method.

(3) In calculating the amount of a credit charge which has accrued under a credit sale contract or a loan contract, the credit provider may, if he or she so determines, apply a percentage rate per annum that is lower than the annual percentage rate disclosed under the contract.