New South Wales Consolidated Acts

CREDIT ACT 1984 - SECT 37

37 “Add-on” contracts

(1) This section applies to a credit sale contract that provides for the consolidation of the amount payable under the contract with the net balance due to the credit provider (at the time the contract is entered into) under another credit sale contract (not being a credit sale contract in relation to which there is a mortgage) that is discharged upon the entering into of the first-mentioned contract.

(2) A credit sale contract to which this section applies does not fail to be in accordance with section 35 by reason only that the statements referred to in section 35 (1) (c) to (h) are not included in the contract, but only if the conditions specified in subsection (3) are satisfied.

(3) The conditions referred to in subsection (2) are that:

(a) to the extent to which the statements referred to in section 35 (1) (c), (d), (f), (g) and (h) were not included in the contract, they are included in a written notice given to the debtor within 28 days after the contract is entered into,

(b) if a statement of the total of the amount financed and the credit charge is not included in the contract, it is included in the notice referred to in paragraph (a), and

(c) the notice given under paragraph (a) is accompanied by a notice in or to the effect of the prescribed form.

(4) At any time after a credit sale contract to which this section applies is entered into and before the expiration of ten days after the day on which the notice referred to in subsection (3) (a) has been given, the debtor may rescind the contract by notice in writing given to the credit provider.

(5) Upon rescission under subsection (4) by the debtor of a credit sale contract to which this section applies, the other credit sale contract referred to in subsection (1) shall, by force of this subsection, revive, and any payments made under the credit sale contract to which this section applies shall be deemed to have been made under the revived contract.

(6) Where a credit sale contract revives by force of subsection (5), the debtor shall be deemed not to be or have been in breach of, or in default under, the revived contract in respect of the period during which the credit sale contract to which this section applies was in force, if the debtor was not in breach of, or in default under, the credit sale contract to which this section applies.

(7) Where a credit sale contract to which this section applies is rescinded by the debtor, the debtor shall, on demand by the supplier, return any goods to which the contract relates, other than goods to which the revived contract applies.

Penalty: 10 penalty units.

(8) Where there is a dispute arising out of the operation of this section, a court may, on the application of a debtor, credit provider or guarantor, make an order declaring or adjusting rights or liabilities affected by the operation of this section:

(a) to give effect to, or to enforce, any rights or liabilities consequent upon that operation, or

(b) subject to any such rights or liabilities, to restore the debtor, credit provider or guarantor, as nearly as practicable to their respective positions before the credit sale contract to which this section applies was entered into.

(9) The reference in subsection (1) to the net balance due to the credit provider shall be construed in accordance with section 103, and as if that section were contained in this Part.