Credit Regulations 1985

For the purposes of section 11(2)(c) of the Act, an applicable method is followed where the amount of the credit charge which has accrued at a particular time is calculated by adding together the amounts ascertained by applying the monthly percentage rate to the unpaid monthly balances (being monthly balances up to that time, including the monthly balance for the month in which the accrued credit charge is calculated) —

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.

In subregulation (1) —

monthly percentage rate means the rate determined by dividing the annual percentage rate by 12; and

monthly balances means monthly balances obtained by application of the actuarial method.

For the purposes of section 11(2) of the Act, an applicable method for calculating the amount of the credit charge which has accrued at a particular time is by application of the formula set out in Schedule 1 to the Act, that Schedule being, for the purpose of that application, read and construed as if it has been amended —

by omitting after clause 3(b) the word “and”; and

by inserting at the end of clause 3(c) the following —

intervals shall be deemed to be equal if all intervals except the first are monthly intervals, the amount financed is provided on the 29th, 30th or 31st day of a month and the first instalment is payable on the first day of the month that immediately follows the end of the month that next succeeds the month in which the amount financed is provided.