Credit (Amendment) Act 1993 (NSW)

CREDIT (AMENDMENT) ACT 1993 No. 71

NEW SOUTH WALES

TABLE OF PROVISIONS

1.      Short title

2. Commencement
3. Amendment of Credit Act 1984 No. 94

CREDIT (AMENDMENT) ACT 1993 No. 71

NEW SOUTH WALES

Act No. 71, 1993

An Act to amend the Credit Act 1984 in relation to the maximum annual percentage rate for regulated contracts. [Assented to 18 November 1993]

Credit (Amendment) Act 1993 No. 71

The Legislature of New South Wales enacts:

Short title

1. This Act may be cited as the Credit (Amendment) Act 1993.

Commencement

1. This Act commences on a day to be appointed by proclamation.

Amendment of Credit Act 1984 No. 94

1. The Credit Act 1984 is amended by omitting section 170 and by

inserting instead the following section:

Contract void if annual percentage rate exceeds the maximum rate
170. (1) A credit provider must not enter into a regulated contract if
the annual percentage rate in respect of the contract exceeds the

“maximum rate”. The maximum rate, for the purposes of this section,

is 4 times the rate of interest prescribed under section 95 (1) of the

Supreme Court Act 1970 at the time the contract is entered into.

Maximum penalty: 25 penalty units.

(2) A regulated contract (including any mortgage in so far as it

relates to the contract) is void if it is entered into in contravention of
subsection (1).

(3) However, it is not a contravention of subsection (1) for a credit provider to enter into a regulated contract in respect of which the annual percentage rate exceeds the maximum rate if:

the amount financed under the contract does not exceed $2,000;
and
the credit provider has not, within the period of 2 years before
the date of the contract, engaged in any business with respect to
the provision of credit to the debtor, the debtor’s spouse or any
member of the debtor’s family residing with the debtor at the
date of the contract; and
the annual percentage rate calculated by reference to the credit
charge payable under the contract, reduced by an amount which

is the lesser of 7% of the amount financed or $35, does not

exceed the maximum rate.

If, by the operation of this section, a regulated contract is void, the debtor is entitled to recover from the credit provider as a debt any amount paid to the credit provider under the contract.

Credit (Amendment) Act 1993 No. 71

(5) The regulations may make provision for the inclusion in any regulated contract of a statement relating to the annual percentage rate of the contract or to the maximum rate (or to both).

(6) Nothing in this section affects the powers of the Tribunal under Part 9 in relation to a contract or mortgage that is not, by reason of this section, void.

[Minister’s second reading speech made in-

Legislative Assembly on 7 September 1993 Legislative Council on 9 November 1993]