Victorian Consolidated Legislation

Credit Act 1984 - SECT 52

Chargeable amount

52. Chargeable amount



(1) Subject to this section, a reference in this Division to the chargeable
amount in respect of a billing cycle of a continuing credit contract is a
reference to the sum of such of the amounts included in the statement of
account referred to in section 61 for that billing cycle as, under the
contract, the credit provider determines constitutes the chargeable amount,
being an amount not exceeding-

   (a)  the amount that is the amount owed under the contract by the debtor
        immediately before the commencement of the billing cycle less amounts
        included in the statement of account in respect of payments by the
        debtor during the billing cycle; or

   (b)  the amount that is the sum of the balances owed under the contract by
        the debtor at the end of each day of the billing cycle, divided by the
        number of days in the billing cycle-

whichever is the greater.

(2) A credit provider shall not determine as an amount constituting the
chargeable amount for a billing cycle of a continuing credit contract an
amount that exceeds the greater of the amounts referred to in paragraphs (a)
and (b) of subsection (1).

Penalty: 10 penalty units.

(3) Where an amount determined as an amount constituting the chargeable amount
for a billing cycle exceeds the greater of the amounts referred to in
paragraphs (a) and (b) of subsection (1), the chargeable amount for that
billing cycle shall be deemed, for the purposes of this Division, to be the
lesser of the amounts referred to in paragraphs (a) and (b) of subsection (1).