Victorian Consolidated Legislation

Credit Act 1984 - SECT 37

Add-on contracts

37. Add-on contracts



(1) This section applies to a credit sale contract that provides for the
consolidation of the amount payable under the contract with the net balance
due to the credit provider (at the time the contract is entered into) under
another credit sale contract (not being a credit sale contract in relation to
which there is a mortgage) that is discharged upon the entering into of the
first-mentioned contract.





(2) A credit sale contract to which this section applies does not fail to be
in accordance with section 35 by reason only that the statements referred to
in paragraphs (c) to (h) of section 35(1) are not included in the contract,
but only if the conditions specified in subsection (3) are satisfied.

(3) The conditions referred to in subsection (2) are that-

   (a)  to the extent to which the statements referred to in paragraphs (c),
        (d), (f), (g) and (h) of section 35(1) were not included in the
        contract, they are included in a written notice given to the debtor
        within 28 days after the contract is entered into;

   (b)  if a statement of the total of the amount financed and the credit
        charge is not included in the contract, it is included in the notice
        referred to in paragraph (a); and

   (c)  the notice given under paragraph (a) is accompanied by a notice in or
        to the effect of the prescribed form.

(4) At any time after a credit sale contract to which this section applies is
entered into and before the expiration of 10 days after the day on which the
notice referred to in paragraph (a) of subsection (3) has been given, the
debtor may rescind the contract by notice in writing given to the credit
provider.

(5) Upon rescission under subsection (4) by the debtor of a credit sale
contract to which this section applies, the other credit sale contract
referred to in subsection (1) shall, by force of this subsection, revive, and
any payments made under the credit sale contract to which this section applies
shall be deemed to have been made under the revived contract.

(6) Where a credit sale contract revives by force of subsection (5), the
debtor shall be deemed not to be or have been in breach of, or in default
under, the revived contract in respect of the period during which the credit
sale contract to which this section applies was in force, if the debtor was
not in breach of, or in default under, the credit sale contract to which this
section applies.

(7) Where a credit sale contract to which this section applies is rescinded by
the debtor, the debtor shall, on demand by the supplier, return any goods to
which the contract relates, other than goods to which the revived contract
applies.

Penalty: 10 penalty units.

(8) Where there is a dispute arising out of the operation of this section, a
court may, on the application of a debtor, credit provider or guarantor, make
an order declaring or adjusting rights or liabilities affected by the
operation of this section-

   (a)  to give effect to, or to enforce, any rights or liabilities consequent
        upon that operation; or

   (b)  subject to any such rights or liabilities, to restore the debtor,
        credit provider or guarantor, as nearly as practicable to their
        respective positions before the credit sale contract to which this
        section applies was entered into.

(9) The reference in subsection (1) to the net balance due to the credit
provider shall be construed in accordance with section 103, and as if that
section were contained in this Part.