Queensland Consolidated Acts Queensland Consolidated Acts(1) The credit provider and the debtor under a credit sale contract or a loan contract may agree to vary the terms of the contract in relation to, or to payment of, the amount owing under the contract if--
(a) the outstanding balance of the amount financed at the date of the variation is not increased by the variation or is increased by the variation merely because of the addition of an amount referred to in subsection (3); and
(b) the annual percentage rate applicable to the contract as varied does not exceed--
(i) the annual percentage rate applicable to the contract immediately before the variation; or
(ii) the annual percentage rate prescribed by the regulations for the purposes of this subparagraph;
whichever is the less; and
(c) a deferral charge is not made in respect of the variation; and
(d) the agreement is in writing signed by the credit provider and the debtor and specifies (where applicable)--
(i) the varied terms of repayment; and
(ii) the amount by which the amount financed is increased; and
(iii) the amount by which the credit charge is increased because of the variation; and
(iv) the amount of default charges and deferral charges outstanding at the date of the variation; and
(v) the amount of duty under the Duties Act 2001 relating to the agreement and legal fees payable to a duly qualified legal practitioner (not being the credit provider or an employee of the credit provider) for preparation of the agreement; and
(vi) the additional amount payable under the contract because of the variation; and
(vii) such other matters as may be prescribed.
(2) The regulations may prescribe the manner in which matters required by subsection (1)(d) to be specified in an agreement are to be so specified, whether by the use of a prescribed form or otherwise.
(3) The following are the amounts by which the outstanding balance of the amount financed under a credit sale contract or a loan contract may be increased by a variation under subsection (1)--
(a) where, under the credit sale contract or loan contract, the premium under a contract of insurance or compulsory insurance entered into in relation to the credit sale contract or loan contract or a regulated mortgage relating to the contract was included in the amount financed under the credit sale contract or loan contract--a premium payable under that contract of insurance or compulsory insurance in relation to a subsequent period not exceeding 12 months;
(b) where, under the credit sale contract or loan contract, registration fees relating to goods and in respect of a particular period were included in the amount financed under the credit sale contract or loan contract--registration fees relating to those goods in respect of a subsequent period;
(c) such other amounts as may be prescribed.
(4) Where a credit provider enters into an agreement referred to in subsection (1) the credit provider shall, not later than 21 days after the agreement is entered into, give the debtor a copy of the agreement.
(5) Despite any other provisions of this Act, an agreement to vary a contract in accordance with this section is not a loan contract.
(6) Where a variation to which this section applies is made to the terms of a credit sale contract or a loan contract, a guarantor under a contract of guarantee in respect of the obligations of the debtor under the contract is not liable in respect of the contract for an amount exceeding the amount for which, but for the variation, the guarantor would have been liable unless the credit provider, not later than 21 days after the variation was made, gave the guarantor a notice in writing of the variation.
(7) This section does not apply to or in respect of a variation--
(a) if section 39, 70, 72 or 73 applies to or in respect of the variation; or
(b) merely because, as a result of a variation, the amount due to a credit provider is satisfied or reduced.