Victorian Consolidated Legislation

Credit Act 1984 - SECT 69

Refinancing of credit contracts by the same parties

69. Refinancing of credit contracts by the same parties



(1) Where a credit provider agrees to discharge one or more regulated
contracts to which the credit provider and the debtor are parties in
consideration of the entering into another credit contract by the debtor
(whether or not a regulated contract), the credit provider shall, before
entering into the other credit contract, give to the debtor a statement in
writing stating, in respect of each of the regulated contracts to be
discharged-

   (a)  the amount that would be due to the credit provider under section 105
        if, immediately before the relevant date, the debtor were to discharge
        his obligations under the contract in accordance with that section;
        and

   (b)  in the case of a regulated credit sale contract or a regulated loan
        contract, particulars of the calculation of that amount by setting
        out-

   (i)  the outstanding balance of the amount financed;

   (ii) the outstanding balance of the accrued credit charge;

   (iii) the outstanding balance of deferral charges (if any) charged in
        accordance with this Part;

   (iv) the outstanding balance of default charges (if any) charged in
        accordance with this Part; and

   (v)  the outstanding balance of enforcement expenses (if any)- and (where
        the relevant insurance and maintenance contracts are discharged) the
        amounts of statutory rebates (if any) of insurance charges and
        maintenance charges deducted from the sum of the amounts referred to
        in subparagraphs (i) to (v).

(2) In subsection (1), relevant date means the date on which the new credit
contract is entered into or, if that credit contract is entered into by the
acceptance by the credit provider of an offer made by the debtor, the date on
which the offer is made.