Queensland Consolidated Acts

CREDIT ACT 1987 - SECT 74

(1) Where under a credit sale contract or a loan contract the debtor does not pay an amount payable under the contract when it is due, the credit provider shall not make a charge in respect of the failure to pay unless there is a term in the contract to the effect that such a charge may be made and the charge does not exceed--

(a) the amount determined by applying to the daily balance of the amount due and unpaid--

(i) where a credit charge is payable under a contract--the daily percentage rate under the contract; or

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

(b) the amount determined by applying to the amount unpaid the rate specified in the contract for the purposes of such a charge;

whichever is the less.

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

(a) in respect of the failure to pay an amount payable under a credit sale contract or a loan contract when it is due unless the whole or part of the credit charge under the contract is a predetermined credit charge; or

(b) in respect of the failure to pay an amount payable under a regulated continuing credit contract; or

(c) in respect of a charge under subsection (1) that is unpaid.

(3) Nothing in this section affects the right of a credit provider to make or require payment of an accrued credit charge, a deferral charge or an enforcement expense.