Victorian Consolidated Legislation

Credit Act 1984 - SECT 80

Discrepancy between credit charge and annual percentage rate

80. Discrepancy between credit charge and annual percentage rate

Where, under a credit sale contract or a loan contract, the whole of the
credit charge is a predetermined credit charge or an estimated credit charge
and the amount of the credit charge stated in the contract differs from the
amount determined by applying, according to the actuarial method, the annual
percentage rate stated in the contract to the amount financed by an amount
that exceeds one per centum of the amount so stated in the contract, the
liability of the debtor under the contract in respect of the credit charge is
a liability-

   (a)  where the amount so determined is less than the amount so stated-to
        pay the amount determined by applying the annual percentage rate to
        the unpaid balance of the amount financed; or



   (b)  where the amount so determined exceeds the amount so stated-to pay the
        amount determined in accordance with the contract as if the annual
        percentage rate were the rate which, when applied to the unpaid
        balance of the amount financed, yields an amount equal to the amount
        so stated.