Victorian Consolidated Legislation

Credit Act 1984 - SECT 53

Amounts payable under continuing credit contract

53. Amounts payable under continuing credit contract



(1) A provision in a continuing credit contract which requires the debtor to
pay to the credit provider an amount other than an amount that is-

   (a)  the cash price of goods or services supplied by the credit provider or
        by another supplier in respect of payment for which credit is provided
        under the contract;

   (b)  an amount of cash supplied by the credit provider or by another
        supplier for the supply of which credit is provided under the
        contract;

   (c)  a credit charge;

   (d)  an amount of enforcement expenses;

   (e)  an amount of stamp duty in respect of or in relation to the contract
        payable by the debtor to the credit provider;

   (f)  an amount payable under the contract by the debtor to the credit
        provider that is a prescribed charge for the purposes of this section;
        or

   (g)  the amount of any other consideration given to the debtor under the
        contract being consideration that is of a kind prescribed for the
        purposes of this section-

is void.

(2) A credit provider shall not enter into a continuing credit contract that
includes a provision that, by reason of subsection (1) is void.

Penalty: 20 penalty units.