Credit Act 1984

Subject to this section, a reference in this Division to the chargeable amount in respect of a billing cycle of a continuing credit contract is a reference to the sum of such of the amounts included in the statement of account referred to in section 61 for that billing cycle as, under the contract, the credit provider determines constitutes the chargeable amount, being an amount not exceeding—

the amount that is the amount owed under the contract by the debtor immediately before the commencement of the billing cycle less amounts included in the statement of account in respect of payments by the debtor during the billing cycle; or

the amount that is the sum of the balances owed under the contract by the debtor at the end of each day of the billing cycle, divided by the number of days in the billing cycle—

A credit provider shall not determine as an amount constituting the chargeable amount for a billing cycle of a continuing credit contract an amount that exceeds the greater of the amounts referred to in paragraphs (a) and (b) of subsection (1).

Where an amount determined as an amount constituting the chargeable amount for a billing cycle exceeds the greater of the amounts referred to in paragraphs (a) and (b) of subsection (1), the chargeable amount for that billing cycle shall be deemed, for the purposes of this Division, to be the lesser of the amounts referred to in paragraphs (a) and (b) of subsection (1).