Credit Act 1984

Subject to subsection (2), a reference in this Part (other than in section 48) to a continuing credit contract is a reference to a continuing credit contract under which—

where credit is or may be provided to the debtor by way of the supply of cash by the credit provider or any other person (whether to the debtor or to another person)—a charge is or may be made for the provision of credit in respect of which the annual percentage rate exceeds fourteen per centum; or

where credit is or may be provided to the debtor by the credit provider in respect of payment for goods or services supplied by the credit provider or any other person (whether to the debtor or to another person)—

a charge, other than an account charge, is or may be made for the provision of credit;

an amount, other than an account charge, owing at any time by the debtor is not required to be paid within the period of four months after it is first owed; or

an amount, other than an account charge, owing at any time by the debtor is or will become payable by five or more instalments or by a deposit and four or more instalments.

This Part does not apply to a continuing credit contract under which—

where credit is or may be provided to the debtor by way of the supply of cash by the credit provider or any other person (whether to the debtor or to another person)—a charge is or may be made for the provision of credit in respect of which, where the payment of a debt or other pecuniary obligation or the performance of any other obligation under the continuing credit contract is secured by a mortgage of land—there is an acceptable rate of interest that does not exceed 14 per centum and a higher annual percentage rate that exceeds 14 per centum but does not exceed the acceptable rate by more than 2 per centum;

an amount exceeding $20 000 is agreed as the maximum amount that at any time may be owed by the debtor under the contract; or

an authorised deposit-taking institution or a pastoral finance company provides credit to a person by overdraft on current account.

For the purposes of paragraph (b) of subsection (2), a continuing credit contract shall be deemed not to be a contract under which an amount exceeding $20 000 is agreed as the maximum amount that at any time may be owed by the debtor under the contract where—

under the contract, the debtor may not, otherwise than by reason of his default, owe more than $20 000 excluding any credit charge; or

when the contract is made, it is probable, having regard to the terms of the contract and all other relevant considerations, that the amount owed by the debtor under the contract will not at any time exceed $20 000 excluding any credit charge.

Where more than one account is maintained under a continuing credit contract, this Division (this section and sections 58, 59, 60 and 66 excepted) has effect as if separate continuing credit contracts in the same terms as the contract under which the accounts are maintained had been entered into in relation to each account.