Queensland Consolidated Acts

CREDIT ACT 1987 - SECT 73

(1) Where a credit provider and a debtor agree to vary a credit sale contract or a loan contract by the deferral of the payment of an amount payable by the debtor under the contract, the credit provider shall not make a charge in respect of the deferral unless--

(a) the payment is deferred--

(i) in accordance with a term in the contract to the effect that such a payment may be deferred; or

(ii) in accordance with the agreement of the credit provider and the debtor; and

(b) the charge in respect of the deferral does not exceed the amount determined in accordance with subsection (2); and

(c) a default charge is not made in respect of the deferral; and

(d) the deferral is made in accordance with subsection (4).

(2) The amount of a charge in respect of the deferral of the payment of an amount payable under a credit sale contract or a loan contract determined in accordance with this subsection is--

(a) the amount that is the sum of the amount determined by applying to the amount, payment of which is deferred, in respect of the number of days for which it is deferred--

(i) where a credit charge is payable under the contract--a rate not exceeding the daily percentage rate that applies to the contract; or

(ii) where a credit charge is not payable under the contract--the rate prescribed for the purposes of this section;

and the amounts (if any) payable in respect of charges mentioned in subsection (3) in relation to the deferral of the payment; or

(b) the amount agreed by the credit provider and the debtor as the charge;

whichever is the less.

(3) The charges in relation to the deferral of a payment referred to in subsections (2)(a) and (4)(b) are charges in respect of--

(a) duty under the Duties Act 2001 payable in respect of the deferral; and

(b) fees payable to a duly qualified legal practitioner (not being the credit provider or an employee of the credit provider) authorised to prepare documents for the deferral.

(4) Where a credit provider defers payment of an amount payable under a credit sale contract or a loan contract the deferral is in accordance with this subsection if, not later than 14 days after the credit provider agrees to defer or, where the deferral is made under a term of the contract, the credit provider defers the payment, the credit provider gives notice in writing to the debtor stating--

(a) the amount of the payment deferred; and

(b) the amounts (if any) payable in respect of charges mentioned in subsection (3) in relation to the deferral of the payment; and

(c) the date on which the period for which the payment is deferred expires; and

(d) the amount of the charge, in dollars and cents; and

(e) if applicable, the rate applied to the amount, payment of which is deferred in accordance with subsection (2)(a), to determine the amount of the charge.

(5) A credit provider shall not make a charge--

(a) in respect of the deferral of the payment of an amount payable by the debtor under a credit sale contract or a loan contract, unless the whole or part of the credit charge under the contract is a predetermined credit charge; or

(b) in respect of the deferral of the payment of an amount payable by the debtor under a regulated continuing credit contract.

(6) Despite anything to the contrary in this Act, the deferral of the payment of an amount payable by a debtor under a credit sale contract or a loan contract in accordance with this section is not a loan contract.