New South Wales Consolidated Acts

CONSUMER CREDIT (NEW SOUTH WALES) ACT 1995 - SECT 11

11 Maximum annual percentage rate

(1) The regulations may prescribe a maximum annual percentage rate for a credit contract or class of credit contracts to which the Consumer Credit (New South Wales) Code applies.

(2) The regulations may require interest charges and all credit fees and charges under a credit contract or class of credit contracts to be included for the purpose of calculating the maximum annual percentage rate under the credit contract for the purposes of subsection (1).

(3) Division 2 of Part 2 of the Consumer Credit (New South Wales) Code applies in relation to such a maximum annual percentage rate as if that rate had been prescribed by that Code.

Note: The effect of subsection (3) is that a contract is void to the extent it imposes a monetary liability prohibited under subsection (1) and that any amount paid under the contract may be recovered. In addition the credit provider is guilty of an offence for entering into such a contract.

(4) Nothing in this section affects the powers of the Court under Division 3 of Part 4 of the Consumer Credit (New South Wales) Code in relation to a contract that is not, by reason of this section, void.

Note: Division 3 of Part 4 of the Code allows (among other things) the Court to re-open unjust transactions.