Victorian Consolidated Legislation

Consumer Credit (Victoria) Act 1995 - SECT 39

Contract unenforceable if rate exceeds 48 per cent

39. Contract unenforceable if rate exceeds 48 per cent



(1) A credit contract (and any mortgage given to a credit provider in relation
to that contract) is unenforceable where the annual percentage rate in respect
of the contract exceeds 48.

(2) Nothing in this section affects or limits the powers of the Court under
section 70 of the Consumer Credit (Victoria) Code if the Court is satisfied
that the annual percentage rate in respect of a credit contract although not
exceeding, in the case of a credit contract in relation to which there is a
mortgage, 30, and in the case of any other contract, 48, is excessive or that
the transaction is unjust within the meaning of that section or is such that a
court of equity would give relief.

(3) A credit provider must not enter into a credit contract where the annual
percentage rate in respect of the contract exceeds 48.

Penalty applying to this subsection: 10 penalty units.