Credit Act 1984

Except as otherwise expressly provided in or under this Act, this Act applies (notwithstanding anything to the contrary in any other Act or law) to and in respect of a contract of sale, credit contract or mortgage—

if the contract of sale, credit contract or mortgage is in writing and is signed in Victoria by the buyer, debtor or mortgagor; or

where the contract of sale, credit contract or mortgage is not in writing or is in writing but is not signed by the buyer, debtor or mortgagor in Victoria or in a recognized State—

in the case of a contract of sale, if the goods or services are, or are to be, delivered or supplied in Victoria;

in the case of a credit contract, if the credit is, or is to be, provided to the debtor in Victoria or the debtor has, or is to have, the use or benefit of the credit in Victoria; or

in the case of a mortgage, if property subject to the mortgage is at the date of creation of the mortgage situated in Victoria.

Subject to subsection (3), a provision of this Act that relates to a contract of sale, credit contract, mortgage or contract for the hiring of goods does not apply to or in relation to a contract of sale, credit contract, mortgage or contract for the hiring of goods, as the case may be, made before the commencement of the provision.

This Act (except sections 58, 59 and 67(1)(c) and Parts II, VII, VIII and IX) applies to and in relation to a continuing credit contract made before the commencement of Part III that, if it had been made after that commencement, would have been a continuing credit contract to which that Part applies but nothing in this Act applies to or in relation to a billing cycle that commenced before the commencement of that Part.

Where, by reason of subsection (3), this Act (except sections 58, 59 and 67(1)(c) and Parts II, VII, VIII and IX), applies to and in relation to a continuing credit contract, the credit provider shall, when he first gives a statement of account referred to in section 61 after the commencement of Part III, give to the debtor a statement in accordance with section 58 and a notice stating the matters required to be stated in a notice under section 59.

Except where otherwise expressly provided by this Act, this Act binds the Crown not only in right of Victoria but also, so far as the legislative power of Parliament permits, the Crown in all its other capacities.

This Act applies to and in respect of the Crown in any of its capacities to the same extent as if the Crown were, in that capacity, a body corporate.

In this Act, except in so far as the context or subject-matter otherwise indicates or requires, a reference to a court in relation to any contract or other matter—

where proceedings in relation to the contract or matter have been instituted in, or are before, a court—is a reference to that court;

where proceedings in relation to the contract or matter have been instituted in, or are before, the Tribunal—is a reference to the Tribunal; or

in any other case, is a reference to—

the Tribunal; or

the Magistrates' Court.

Where a court and the Tribunal each have jurisdiction to determine the same matter, proceedings to determine the matter may be instituted before the court or the Tribunal but not before both.

Where proceedings are instituted in, or are before, a court in a matter for the determination of which the Tribunal and the court each have jurisdiction, the proceedings shall—

if all the parties to the proceedings so agree; or

if the court of its own motion or on the application of a party so directs—

Where proceedings are instituted in, or are before, the Tribunal in a matter for the determination of which the Tribunal and a court each have jurisdiction, the proceedings shall—

if all the parties so agree; or

if the Tribunal of its own motion or on the application of a party so directs—

a credit sale contract or a loan contract is a credit sale contract or loan contract to which Part III applies; or

a continuing credit contract is a continuing credit contract to which Part III applies—

This Act applies to a person to whom the rights and obligations of—

a credit provider under a credit contract;

a debtor under a credit contract;

a guarantor under a contract of guarantee;

a credit provider under a contract of guarantee;

a mortgagee under a mortgage; or

a mortgagor under a mortgage—

Nothing in subsection (1) operates to confer any rights under this Act on an assignee of a credit provider or mortgagee where the assignment is in contravention of this Act.

Subsection (1) does not apply where the rights and obligations referred to in paragraph (b), (c) or (f) of subsection (1) are assigned or transferred, or pass by operation of law, to a body corporate.

in relation to a credit sale contract or a loan contract in respect of which the annual percentage rate has not been disclosed to the debtor or has been so disclosed otherwise than in accordance with section 38, is a reference to the lowest percentage rate per annum that can be determined in accordance with that section in relation to the contract;

in relation to a credit sale contract or a loan contract under which the annual percentage rate has been disclosed in accordance with section 38, is a reference to the rate disclosed; and

in relation to a continuing credit contract, is a reference to the annual percentage rate within the meaning of section 55.

For the purposes of this Act, a reference to a credit charge—

in relation to a credit sale contract or a loan contract, is a reference to the amount by which the amount payable under the contract by the debtor to the credit provider or a person on his behalf (not including amounts of deferral charges, default charges or enforcement expenses) exceeds the amount financed; and

in relation to a billing cycle of a continuing credit contract, is a reference to a credit charge within the meaning of section 54.

For the purposes of the interpretation of accrued credit charge in relation to a credit sale contract or a loan contract, the amount of the credit charge which has accrued at a particular time may be calculated—

by adding together the amounts ascertained by applying the daily percentage rate to the unpaid daily balances (being daily balances before that time)—

in the case of a credit sale contract—of the amount financed; or

in the case of a loan contract—of the amount financed other than any part of the amount agreed under the contract to be lent that has not been lent at that time;

where Schedule 1 applies to the credit sale contract or loan contract—in accordance with the formula set out in that Schedule; or

where an applicable method is prescribed for the purposes of this subsection—in accordance with that method.

In calculating the amount of a credit charge which has accrued under a credit sale contract or a loan contract, the credit provider may, if he so determines, apply a percentage rate per annum that is lower than the annual percentage rate disclosed under the contract.

For the purposes of this Act, a loan contract is a tied loan contract where the credit provider enters into the loan contract with a person who is a buyer of goods or services supplied by a supplier and—

the credit provider knows or ought reasonably to know that the buyer enters into the loan contract wholly or partly for the purposes of payment for the goods or services; and

at the time the loan contract is entered into the credit provider is a linked credit provider of the supplier.

For the purposes of this Act, a continuing credit contract is a tied continuing credit contract where the credit provider provides credit under the continuing credit contract in respect of the payment by the debtor for goods or services supplied by a supplier in relation to whom the credit provider is a linked credit provider.

A contract for the hiring of goods shall be deemed to be a credit sale contract if—

the cash price of the goods at the time when the contract for the hiring is made is not more than $20 000 or the goods are, or include, a commercial vehicle or farm machinery in relation to which the cash price is more than $20 000; and

under the contract the person to whom the goods are hired has a right, obligation or option to purchase the goods.

A contract for the hiring of goods shall be deemed to be a credit sale contract if the cash price of the goods at the time the contract is made is not more than $20 000 or the goods are a commercial vehicle or farm machinery and—

the contract provides, or it is reasonably likely having regard to the nature of the goods that the goods are, or are to be, affixed to land or to other goods and the goods are not, or when so affixed would not be, reasonably capable of being re-delivered to the supplier;

before the contract is made, the supplier—

acts in such a manner that the person to whom the goods are hired ought reasonably to infer that the supplier is willing, whether during or within a reasonable time after the period during which the contract is in force, to negotiate the sale to him of the goods or of goods of a value and description similar to the value and description of the goods to which the contract relates (being a value and description as at the time the contract is made); and

expects, or in the circumstances ought reasonably to expect, that the person to whom the goods are hired will negotiate the purchase by him of the goods or of goods of such a similar value and description; or

before the contract is made, it is agreed that the person to whom the goods are hired may continue the contract for a nominal consideration for a period that exceeds, or for two or more periods that together exceed, the period of two years after the expiration of the original term of the contract for the hiring.

Where a contract for the hiring of goods is by this section deemed to be a credit sale contract—

the person from whom the goods are hired is the credit provider under the credit sale contract;

the person to whom the goods are hired is the debtor under the credit sale contract;

the cash price of the goods for the purposes of the credit sale contract is the cash price in relation to the contract for the hiring;

the instalments payable under the contract for the hiring are instalments payable under the credit sale contract;

the property of the supplier in the goods passes under the contract to the person to whom the goods are hired upon delivery of the goods or the making of the contract, whichever last occurs;

a mortgage containing the prescribed terms and conditions shall be deemed to have been entered into in writing between the person to whom the goods are hired and the supplier as security for payment to the supplier of the amount payable to him by the person to whom the goods are hired under the contract; and

any provision in the contract for hiring by virtue of which the supplier is empowered to take possession or dispose of the goods to which the contract relates is void.

In this section—

a reference to a contract for the hiring of goods does not include—

a reference to a contract for the hiring of goods to a body corporate; or

a reference to a contract for the hiring of goods that are or might reasonably be expected to be used by the person to whom they are hired wholly or mainly for the purpose of a business carried on by him or by him and another person or persons and the whole or the greater part of the amount payable under the contract is, or might reasonably be expected to be, a loss or outgoing necessarily incurred in carrying on the business; and

cash price in relation to a contract for the hiring of goods—

where at the time the contract is made the goods are available for purchase for cash from the person from whom the goods are hired—means the lowest price at which the person to whom the goods are hired might have bought the goods from the first-mentioned person for cash;

where at the time the contract is made the goods are reasonably available for purchase for cash but are not reasonably available for purchase for cash from the person from whom the goods are hired—means the price at which, at that time, the person to whom the goods are hired might reasonably have bought goods of that kind for cash; or

where at the time the contract is made the goods are not reasonably available for purchase for cash—means the amount that is the reasonable value of the goods at that time.