CREDIT ACT 1984 - SECT 40

CREDIT ACT 1984 - SECT 40

40 .         More than one rate of interest in contract etc. not permitted in contracts

        (1)         Subject to section 39, a credit sale contract or a loan contract shall be deemed to be not in accordance with the provisions of this Division if it includes —

            (a)         a statement of, or a reference to, more than one annual percentage rate for the purposes of the contract; or

            (b)         a statement of, or a reference to, any other rate to the effect that the credit charge under the contract is or is to be determined by the application of that rate to the whole or any part of the amount financed; or

            (c)         a statement of, or a reference to, a right of the credit provider or any other person to increase, or take any action that results in the increase of, the annual percentage rate.

        (2)         Where, in a credit sale contract or a loan contract, there is a statement of, or a reference to, more than one annual percentage rate for the purposes of the contract or a statement of, or a reference to, any other rate referred to in subsection (1), the annual percentage rate for the purposes of the contract shall be the lowest rate so stated or referred to.