Victorian Consolidated Legislation

Credit Act 1984 - SECT 74

Variation of commitments on account of hardship

74. Variation of commitments on account of hardship



(1) Where a debtor by reason of illness unemployment or other reasonable cause
is unable reasonably to discharge his obligations under a regulated contract,
the debtor may, where he reasonably expects that he would be able to discharge
his obligations-

   (a)  if the period of the contract were extended and the amount of each
        payment due under the contract accordingly reduced (without a change
        being made to the annual percentage rate);

   (b)  if the dates on which payments due under the contract during a
        specified period were postponed (without a change being made to the
        annual percentage rate); or

   (c)  if the period of the contract were extended and the dates on which
        payments due under the contract during a specified period were
        postponed (without a change being made to the annual percentage rate)-

apply to the credit provider for a variation of the contract.

(2) Where a credit provider to whom application is made by a debtor under
subsection (1) refuses to vary a regulated contract in accordance with the
application, the debtor may apply to the Director for assistance in
negotiating a variation of the contract.

(3) Where an application is made under subsection (2), the Director shall seek
the views of the credit provider and any mortgagee or guarantor and after
giving him a reasonable opportunity to be heard and making such other
inquiries as the Director thinks fit, determine whether or not to seek to
arrange with the credit provider a variation of the regulated contract and,
where he seeks such a variation and is unable to reach agreement with the
credit provider, the Director shall refer the application to the Tribunal.

(4) The Tribunal may, where it receives an application referred to it under
subsection (3) and has given the applicant, the credit provider and any
mortgagee or guarantor an opportunity to be heard, order, or refuse to order,
a variation of the contract to which the application relates and, where it
orders such a variation, may make such other order as it thinks fit.

(5) Where an order of the Tribunal under subsection (4) is in force, a credit
provider under a contract to which the order applies may apply to the Tribunal
for a variation of the order.

(6) The Tribunal may, where it receives an application under subsection (5),
make such variation of the order to which the application relates as it thinks
fit or may refuse to vary the order.

(7) Where an application for variation of a regulated contract is referred to
the Tribunal under subsection (3), the credit provider shall not institute
proceedings, or exercise a right, under the contract, or a mortgage that
relates to the contract, before the Tribunal has made or refused an order
under subsection (4).



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Penalty: 20 penalty units.

Division 4-General