Victorian Consolidated Legislation

Credit Act 1984 - SECT 62

Correction of billing errors

62. Correction of billing errors



(1) Where-

   (a)  the debtor under a continuing credit contract queries, by a written
        document given or sent to the credit provider, any amount or other
        matter (being matter that the debtor reasonably believes is incorrect
        as to the nature or extent of the liability of the debtor to the
        credit provider) shown in a statement of account given to him in
        accordance with section 61;

   (b)  the document contains sufficient details to enable the credit provider
        to identify the statement of account;

   (c)  the document is given or sent to the credit provider before payment
        under the contract is due in respect of the statement of account; and

   (d)  the credit provider does not take such action as satisfies the query-

any right of action claimed by the credit provider in respect of the queried
amount or other matter and any related credit charge, and any obligation on
the part of the debtor to pay the queried amount and any related credit
charge, are suspended until after the expiration of the two complete billing
cycles that next succeed the giving by the credit provider to the debtor of a
written notification setting out his decision in relation to the query.

(2) If the credit provider corrects, in a manner that satisfies the query, the
amount or other matter in the statement of account relating to the next
billing cycle given to the debtor or a subsequent billing cycle, the credit
provider may not impose any charge for the provision of credit, or otherwise,
in respect of that next billing cycle and any such subsequent billing cycles,
relating to the queried amount or other matter, and the imposition of any such
charge is, without limiting subsection (4), void.

(3) The debtor may apply to the Tribunal, before the expiration of the two
complete billing cycles that next succeed the giving by the credit provider to
the debtor of a written notification of his decision in relation to the query,
for a determination to be made with respect to the queried amount or other
matter, and any right of action, and obligation to pay, referred to in
subsection (1) are further suspended until the Tribunal makes its
determination.

(4) The determination of the Tribunal is conclusive as to the matters in
dispute, and the Tribunal may make such orders as it thinks fit, including-

   (a)  an order that the whole or a specified part of the credit charge or
        other charges that would have been payable by the debtor had he not
        made his query are payable by him; and

   (b)  an order removing the suspension imposed by subsection (1).

(5) A credit provider shall not institute proceedings in respect of a right of
action referred to in subsection (1) while the right of action is, by virtue
of this section, suspended.

Penalty: 20 penalty units.