Victorian Consolidated Legislation

Credit Act 1984 - SECT 40

Inclusion of more than one rate of interest

40. Inclusion of more than one rate of interest



(1) Subject to section 39, a credit sale contract or a loan contract shall be
deemed to be not in accordance with the provisions of this Division if it
includes-

   (a)  a statement of, or a reference to, more than one annual percentage
        rate for the purposes of the contract;

   (b)  a statement of, or a reference to, any other rate to the effect that
        the credit charge under the contract is or is to be determined by the
        application of that rate to the whole or any part of the amount
        financed; or

   (c)  a statement of, or a reference to, a right of the credit provider or
        any other person to increase, or take any action that results in the
        increase of, the annual percentage rate.





(2) Where, in a credit sale contract or a loan contract, there is a statement
of, or a reference to, more than one annual percentage rate for the purposes
of the contract or a statement of, or a reference to any other rate referred
to in subsection (1), the annual percentage rate for the purposes of the
contract shall be the lowest rate so stated or referred to.