Victorian Consolidated Legislation

Credit Act 1984 - SECT 150A

Contract unenforceable if rate exceeds 48 per cent

150A. Contract unenforceable if rate exceeds 48 per cent



(1) A credit contract (and any mortgage given to a credit provider in relation
to that contract) is unenforceable where the annual percentage rate in respect
of the contract exceeds 48.

(2) Nothing in this section affects or limits the powers of the Tribunal under
section 145 where the Tribunal is satisfied that the annual percentage rate in
respect of a regulated contract although not exceeding in the case of a
regulated contract in relation to which there is a regulated mortgage, 30, and
in the case of any other regulated contract, 48, is excessive or that the
transaction is harsh and unconscionable or is such that a court of equity
would give relief.

(3) A credit provider shall not enter into a regulated credit contract where
the annual percentage rate in respect of the contract exceeds 48.

Penalty: 10 penalty units.