Victorian Consolidated Legislation

Credit Act 1984 - SECT 11

Credit charge

11. Credit charge



(1) For the purposes of this Act, a reference to a credit charge-

   (a)  in relation to a credit sale contract or a loan contract, is a
        reference to the amount by which the amount payable under the contract
        by the debtor to the credit provider or a person on his behalf (not
        including amounts of deferral charges, default charges or enforcement
        expenses) exceeds the amount financed; and

   (b)  in relation to a billing cycle of a continuing credit contract, is a
        reference to a credit charge within the meaning of section 54.

(2) For the purposes of the interpretation of accrued credit charge in
relation to a credit sale contract or a loan contract, the amount of the
credit charge which has accrued at a particular time may be calculated-

   (a)  by adding together the amounts ascertained by applying the daily
        percentage rate to the unpaid daily balances (being daily balances
        before that time)-

   (i)  in the case of a credit sale contract-of the amount financed; or

   (ii) in the case of a loan contract-of the amount financed other than any
        part of the amount agreed under the contract to be lent that has not
        been lent at that time;

   (b)  where Schedule 1 applies to the credit sale contract or loan
        contract-in accordance with the formula set out in that Schedule; or

   (c)  where an applicable method is prescribed for the purposes of this
        subsection-in accordance with that method.

(3) In calculating the amount of a credit charge which has accrued under a
credit sale contract or a loan contract, the credit provider may, if he so
determines, apply a percentage rate per annum that is lower than the annual
percentage rate disclosed under the contract.