Victorian Consolidated Legislation

Credit Act 1984 - SECT 38

Statement of annual percentage rate

38. Statement of annual percentage rate

The annual percentage rate required under section 35 or 36 to be stated in a
credit sale contract or a loan contract is-

   (a)  where, under the contract, the whole of the credit charge is
        determined by the application of a percentage rate per annum to the
        daily unpaid balance of the amount financed-that percentage rate; and

   (b)  where under the contract the whole of the credit charge is not so
        determined-

   (i)  the percentage rate per annum which when applied to the daily unpaid
        balance of the amount financed calculated according to the actuarial
        method will yield a sum equal to the amount which under the contract
        would be the credit charge if all payments under the contract were
        paid on the respective days on which under the contract they are
        required to be paid;

   (ii) where Schedule 6 applies to the credit sale contract or loan contract,
        the percentage rate per annum determined in accordance with the
        formula set out in that Schedule; or

   (iii) where an applicable method has been prescribed for the purposes of
        this section, the percentage rate per annum determined according to
        that method-

whichever the credit provider determines.