Victorian Consolidated Legislation

Credit Act 1984 - SECT 83

Application of payments

83. Application of payments

A credit provider shall, unless the credit provider and debtor otherwise
agree, apply payments received under a regulated contract-

   (a)  in the case of a regulated credit sale contract or a regulated loan
        contract-

   (i)  first in payment of default charges (if any);

   (ii) secondly in payment of the accrued credit charge;

   (iii) thirdly in payment of deferral charges (if any);

   (iv) fourthly in payment of the outstanding balance of the amount financed;
        and

   (v)  fifthly in payment of enforcement expenses; and







   (b)  in the case of a regulated continuing credit contract-

   (i)  first in payment of the credit charge; and

   (ii) secondly in payment of any other amount owed under the contract by the
        debtor to the credit provider.