Queensland Consolidated Acts

CREDIT ACT 1987 - SECT 40

The annual percentage rate required under section 37 or 38 to be stated in a credit sale contract or a loan contract is--

(a) where, under the contract, the whole of the credit charge is determined by the application of a percentage rate per annum to the daily unpaid balance of the amount financed--that percentage rate; or

(b) where, under the contract, the whole of the credit charge is not so determined--

(i) the percentage rate per annum which when applied to the daily unpaid balance of the amount financed calculated according to the actuarial method will yield a sum equal to the amount which under the contract would be the credit charge if all payments under the contract were paid on the respective days on which under the contract they are required to be paid; or

(ii) where schedule 6 applies to the credit sale contract or loan contract, the percentage rate per annum determined in accordance with the formula set out in that schedule; or

(iii) where an applicable method has been prescribed for the purposes of this section, the percentage rate per annum determined according to that method;

whichever the credit provider determines.