Victorian Consolidated Legislation

Credit Act 1984 - SECT 76

Enforcement expense

76. Enforcement expense



(1) A provision in a regulated contract to the effect that where the debtor
makes default under the contract and the credit provider exercises a right in
relation to the contract arising from the default, the debtor is, if the
credit provider so determines, liable to pay to the credit provider an amount
incurred or expended in the exercise of that right is void unless the
provision limits the amount so payable to the reasonable amount reasonably
incurred or expended by the credit provider in the exercise of that right.

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

Penalty: 20 penalty units.

(3) Where there is a dispute between the debtor and the credit provider in
relation to the liability of the debtor to pay a reasonable amount reasonably
incurred or expended by the credit provider in the exercise of a right in
relation to a regulated contract arising from the default of the debtor, the
Tribunal, on the application of the debtor or credit provider, may determine
the amount of that liability.