Fair Trading Regulation 2009 (ACT)

The Fair Trading Regulation 2009 (ACT) was made under the Fair Trading (Australian Consumer Law) Act 1992. The regulation concerns the maximum annual percentage rate (MAPR) for credit contracts within the ACT. The dispute in this case involved the interpretation and application of the regulation, specifically focusing on how the MAPR is calculated and the inclusion of certain fees and charges in this calculation.

The primary legal issues before the court were whether the MAPR should include all interest charges and credit fees and charges under a credit contract, and if certain credit fees and charges arising from the establishment or maintenance of a temporary credit facility should be excluded from the MAPR calculation. The court had to determine how to interpret the provisions of the regulation regarding the calculation of the MAPR and the specific circumstances under which certain fees and charges could be excluded.

The court held that the MAPR must include all interest charges and credit fees and charges under a credit contract, except for those arising from the establishment or maintenance of a temporary credit facility under specific conditions. The court emphasised the importance of calculating the MAPR as a nominal rate, correctly rounded to the nearest 0.001%, and applying the tolerances and assumptions specified in the regulation. The court also clarified that certain credit fees and charges could be excluded from the MAPR calculation if they arose from temporary credit facilities and met the conditions outlined in the regulation.

The final orders of the court confirmed the interpretation of the Fair Trading Regulation 2009 with respect to the calculation of the MAPR, reaffirming that all interest charges and credit fees and charges must be included, except for those specified under the regulation's exclusion criteria. The court's decision provided clarity on the application of the regulation, ensuring that credit providers and consumers understood the scope of fees and charges included in the MAPR calculation.