Victorian Consolidated Legislation

Credit Act 1984 - SECT 36

Disclosure in loan contracts2

36. Disclosure in loan contracts2



(1) A loan contract shall include-

   (a)  the date on which the contract, or an offer to enter into the
        contract, was signed by the debtor;

   (b)  a statement of the amount financed in accordance with Schedule 4;

   (c)  a statement of the credit charge in accordance with Schedule 5;

   (d)  where, at the relevant date, it is possible to express the whole of
        the credit charge as an amount of money, a statement of the total of-

   (i)  the credit charge; and

   (ii) the amount financed;

   (e)  a statement of the annual percentage rate in accordance with section
        38;

   (f)  a statement of the person to whom and the place at which payments by
        the debtor are to be made;

   (g)  a statement whether payments are to be made by instalments and if they
        are to be so made, a statement of such of the following as are known
        or can be calculated at the relevant date-

   (i)  where each instalment is the same amount, that amount;

   (ii) where each instalment except the last is the same amount, that amount
        and the amount of the last instalment;

   (iii) where neither subparagraph (i) nor subparagraph (ii) applies, the
        amount of each instalment;

   (iv) the number of instalments; and

   (v)  the time for the payment of each instalment or the time for the
        payment of the first instalment and the interval between each
        instalment and the subsequent instalment;

   (h)  if a commission charge is payable, a statement to that effect and,
        except in so far as the information is not known by the credit
        provider or is not readily available to the credit provider, a
        statement of the person to whom and the person by whom the commission
        charge is payable; and

        (i)    a statement whether any mortgage relating to the contract has
               been or is agreed to be entered into.

(2) A credit provider shall not include in the amount financed under a loan
contract-

   (a)  an amount payable by the debtor to the credit provider in respect of a
        risk under a contract of insurance other than a risk specified in
        clause 1(b) of Schedule 4;

   (b)  where a mortgage relating to the contract has been entered into, an
        amount in respect of insurance against loss of the security interest
        of the mortgagee in any goods subject to the mortgage by reason of
        section 7 of the Chattel Securities Act 1987 exceeding an amount
        calculated by applying the prescribed rate for title insurance in
        relation to goods of that class; or

   (c)  an amount in respect of the discharge of a liability of the debtor to
        the credit provider under a regulated contract that exceeds the amount
        of the net balance due to the credit provider calculated in accordance
        with section 103 immediately before the discharge of the liability.

(2A) Subject to subsection (2B), a loan contract is not to be taken to be not
in accordance with this section only because, in relation to the whole or any
part of the credit charge, it includes a statement of an estimated credit
charge that is greater than that required or permitted to be stated under this
Part (including section 79).

(2B) Subsection (2A) applies only if the amount of the credit charge paid or
to be paid under the contract is not greater than the amount that would have
been required to be paid had the estimated credit charge not been stated as an
amount greater than that which was required or permitted to be stated.

(3) Nothing in this section requires the inclusion in a loan contract of a
statement referred to in this section that is not applicable to the contract.

(4) In this section relevant date means the date on which the loan contract is
entered into or, if the loan contract is entered into by the acceptance by the
credit provider of an offer made by the debtor, the date on which the offer is
made.