{"id":"sr:credit-regulations-2024","name":"Credit Regulations 2024","slug":"credit-regulations-2024","collection":"regulation","jurisdiction":"vic","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":181467,"registerId":"vic-sr:credit-regulations-2024-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Credit Regulations 2024","content":"Version No. 001\n\n**Credit Regulations 2024**\n\n**S.R. No. 90/2024**\n\nVersion as at  \n22 September 2024\n\n**TABLE OF PROVISIONS**\n\n*Regulation Page*\n\n1 Objective 1\n\n2 Authorising provision 1\n\n3 Commencement 1\n\n4 Revocation 1\n\n5 Definition 2\n\n6 Goods prescribed as farm machinery 2\n\n7 Statutory rebate in relation to prescribed insurance charges 2\n\n8 Transfer of proceedings from Tribunal to court 3\n\n9 Prescribed method for calculation of accrued credit charge 3\n\n10 Unilateral variation of credit sale contracts and loan contracts 5\n\n11 Descriptive terms to be used in certain documents 5\n\n12 Information in default notice 5\n\n13 Notice after taking possession of mortgaged goods 5\n\n14 Advertisements—prohibited statement 5\n\n15 Notice of intended proceedings against guarantor 5\n\n16 Statement for guarantor under contract of guarantee 6\n\n17 Person authorised to certify assignment of will etc. 6\n\n18 Lay-out of certain documents 6\n\nSchedule 1 7\n\nSchedule 2—Specified descriptive terms for use in a statement of account referred to in section 61 of the Act 19\n\n═════════════\n\nEndnotes 21\n\n1 General information 21\n\n2 Table of Amendments 23\n\n3 Explanatory details 24\n\n**Version No.** **001**\n\n**Credit Regulations 2024**\n\n**S.R. No. 90/2024**\n\nVersion as at  \n22 September 2024\n\n\t1 Objective\n\nThe objective of these Regulations is to prescribe—\n\n(a) matters for the purposes of certain definitions; and\n\n(b) particular action to be undertaken by a registrar of the Tribunal; and\n\n(c) methods of calculation; and\n\n(d) the duration of a notice period; and\n\n(e) a statement prohibited in advertising; and\n\n(f) descriptive terms to be used in certain documents; and\n\n(g) requirements for the legibility of documents; and\n\n(h) certain forms.\n\n\t2 Authorising provision\n\nThese Regulations are made under section 167 of the **Credit Act 1984**.\n\n\t3 Commencement\n\nThese Regulations come into operation on 22 September 2024.\n\n\t4 Revocation\n\nThe Credit Regulations 2014[[1]](#endnote-1) are **revoked**.\n\n\t5 Definition\n\nIn these Regulations—\n\n***the Act*** means the **Credit Act 1984**.\n\n\t6 Goods prescribed as farm machinery\n\nFor the purposes of paragraph (b) of the definition of ***farm machinery*** in  section 5(1) of the Act, the following goods are prescribed as farm machinery—\n\n(a) a boat within the meaning of the **Fisheries Act 1995** that is used or intended to be used for the taking of fish within the meaning of that Act;\n\n(b) fishing gear or any other implement, apparatus or device for taking or facilitating the taking of fish.\n\n\t7 Statutory rebate in relation to prescribed insurance charges\n\nFor the purposes of paragraph (b) of the definition of ***statutory rebate*** in  section 5(1) of the Act—\n\n(a) the prescribed insurance charges are—\n\n(i) amounts referred to in clause 1(e)(iv), 1(e)(v) and 1(e)(vii) of Schedule 2 to the Act; and\n\n(ii) amounts referred to in clause 1(b)(iii), 1(b)(iv) and 1(b)(vi) of Schedule 4 to the Act; and\n\n(iii) amounts referred to in clause 1(k)(iii), 1(k)(iv) and 1(k)(vi) of Schedule 7 to the Act; and\n\n(b) the prescribed manner of ascertaining the statutory rebate is by applying the following formula—\n\nwhere—\n\n **Y** is the amount of the statutory rebate;\n\n **P** is the amount of insurance charges;\n\n **S** is the number of whole months in the unexpired portion of the period for which insurance was agreed to be provided;\n\n **T** is the number of whole months for which insurance was agreed to be provided.\n\n\t8 Transfer of proceedings from Tribunal to court\n\nFor the purposes of section 6(4) of the Act, in the case of a court that is not empowered to make rules with respect to transferring proceedings from the Tribunal to a court, the principal registrar of the Tribunal must—\n\n(a) prepare and certify a copy of the record of the proceedings; and\n\n(b) file the copy in the office of the principal registrar; and\n\n(c) deliver, or cause to be delivered, the whole of the record to the court.\n\n\t9 Prescribed method for calculation of accrued credit charge\n\n(1) 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 to add 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 charged is calculated)—\n\n(a) in the case of a credit sale contract—of the amount financed; or\n\n(b) 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.\n\n(2) 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 to apply the formula set out in Schedule 1 to the Act, and for the purpose of that application that Schedule is to be read and construed as if it had been amended by inserting the following at the end of item 3(c)—\n\n\"; and\n\n(d) intervals shall be deemed to be equal if all intervals except the first are monthly intervals, the amount financed is provided on the 28th, 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.\".\n\n(3) In this regulation—\n\n***monthly percentage rate*** means the rate determined by dividing the annual percentage rate by 12;\n\n***monthly balances*** means monthly balances obtained by application of the actuarial method.\n\n\t10 Unilateral variation of credit sale contracts and loan contracts\n\nFor the purposes of section 41(1) of the Act, the prescribed period is 7 days.\n\n\t11 Descriptive terms to be used in certain documents\n\n(1) In a statement of account referred to in section 61 of the Act, a matter specified in Column 1 in Schedule 2 must be described or referred to by the term specified opposite that matter in Column 2 in Schedule 2.\n\n(2) A credit provider must not give to a debtor a statement of account referred to in section 61 of the Act that does not comply with subregulation (1).\n\nPenalty: 5 penalty units.\n\n\t12 Information in default notice\n\nFor the purposes of section 107(3)(d) of the Act, the prescribed information is the information set out in Form 1 of Schedule 1.\n\n\t13 Notice after taking possession of mortgaged goods\n\nFor the purposes of section 112 of the Act, the prescribed form of the notice is set out in Form 2 of Schedule 1.\n\n\t14 Advertisements—prohibited statement\n\nFor the purposes of section 121 of the Act, a statement of a rate of interest that is expressed otherwise than as an annual percentage rate is prescribed as a prohibited statement.\n\n\t15 Notice of intended proceedings against guarantor\n\nFor the purposes of section 138(3)(c) of the Act, the prescribed form is set out in Form 3 of Schedule 1.\n\n\t16 Statement for guarantor under contract of guarantee\n\nFor the purposes of section 142 of the Act, the prescribed form of statement is set out in Form 4 of Schedule 1.\n\n\t17 Person authorised to certify assignment of will etc.\n\nFor the purposes of section 150 of the Act, an assignment referred to in that section must be executed in the presence of, and certified by—\n\n(a) a magistrate; or\n\n(b) the Registrar of the County Court; or\n\n(c) an Australian legal practitioner within the meaning of the **Legal Profession Uniform Law Application Act 2014**, instructed and employed independently of the proposed assignee.\n\n\t18 Lay-out of certain documents\n\nSubject to sections 152 and 153 of the Act, the prescribed requirements for the purposes of section 151(2)(b) of the Act are—\n\n(a) the document must be paragraphed; and\n\n(b) the document must be contrasted by means of bold typeface or otherwise, so as to give effect to the prominence of print or type; and\n\n(c) the document must be set out in the contrasting print or type of upper and lower case; and\n\n(d) the document must be enclosed within, or containing, lines, squares or rectangles.\n\nSchedule 1\n\nForm 1\n\nRegulation 12\n\nWhat Should I Do Now That I Have Received This Notice?\n\n  1. You should discuss this matter with your credit provider or mortgagee as soon as possible. You may be able to work out some other arrangement about your contract. For example, you could ask for your contract to be varied, repayments to be deferred or action to be postponed.\n\nThe person to contact is ..............................................................\n\n(name or title of officer/s)\n\nof .................................................................................................\n\n(name of credit provider or mortgagee)\n\n......................................................................................................\n\n(address)\n\nTelephone No/s ............................................................................\n\n2. If you cannot come to a suitable arrangement with your credit provider or mortgagee, contact Consumer Affairs Victoria immediately. If you have been **unemployed**, **sick** or there is another **good reason** why you are having problems with your contract, then your contract may be able to be varied under the law to meet your situation.\n\nThere are other people, such as financial counsellors, who may be able to help.\n\n3. If you disagree with anything in this notice, including what it says you owe, contact Consumer Affairs Victoria or get legal advice immediately.\n\nForm 2\n\nRegulation 13\n\nNotice After Taking Possession of  \nMortgaged Goods\n\nCredit Act 1984 (section 112)\n\n..............................., 20.....\n\n(Date)\n\nTO: ........................................................................................\n\n(name of mortgagor)\n\n........................................................................................\n\n(address of mortgagor)\n\n........................................................................................\n\n........................................................................................\n\nFROM: ........................................................................................\n\n(name of mortgagee)\n\n........................................................................................\n\n(address of mortgagee)\n\n........................................................................................\n\n........................................................................................\n\nThe law says that you must be given this information.\n\nThis information tells you some of your rights and obligations and some of the options open to you.\n\nDETAILS YOU SHOULD KNOW\n\nDescription of the goods: ...................................................\n\n...................................................\n\nDate the goods were taken: ...................................................\n\nThe goods were taken because: ...................................................\n\n...................................................\n\nAs at the date of this Notice, the cost of enforcing the mortgage (such as the cost of taking the goods) is $..................................\n\nYour mortgagee's estimate of the value of the goods is $.....................\n\nHOW TO GET THE GOODS BACK\n\nIF YOU WANT THE GOODS IT IS PARTICULARLY IMPORTANT FOR YOU TO DO ONE OF THE THINGS LISTED BELOW AS SOON AS POSSIBLE. IF YOU DO NOT ACT WITHIN 21 DAYS AFTER YOU GET THIS NOTICE, YOUR MORTGAGEE MAY SELL THE GOODS.\n\nEITHER\n\n  * You can get the goods back if you pay $...................... and fix up any reasons why the goods were taken. This amount of $............ is calculated as follows:\n\n| Arrears ...................................................... |  | $ |\n| --- | --- | --- |\n| Enforcement Expenses ............................. |  | $ |\n| TOTAL |  | $ |\n\n\nOR\n\n  * You can pay the net balance due to the mortgagee worked out to the actual day you pay out your contract. If you do this you can get the goods back and you do not have any further obligations.\n\nTo give you an idea of what the net balance due may be, 2 figures are given below. The first is the net balance due at the date of this notice. The second is the balance calculated 21 days from that date. Any difference is the result of further payments or charges that fall due between the 2 dates.\n\n1. Net balance due on......../......../........ = $........................\n\n2. Net balance due on......../......../........ = $........................\n\n* IF YOU DO NOTHING, YOU WILL LOSE THE GOODS.\n\nSALE OF THE GOODS\n\nThe law says that your mortgagee must get the best price reasonably obtainable for the goods.\n\nIf you want to, you can introduce a buyer to your mortgagee. This has to be done in writing and the buyer must be willing to pay the mortgagee's estimate of the value of the goods. Keep a copy of what you write.\n\nYour mortgagee has to accept the buyer's offer, with one exception. The exception is where your mortgagee claims to be able to sell the goods for a price higher than the estimate of their value. In this case, the buyer has to be willing to pay this higher price if the buyer still wants the goods. However, if the buyer does not buy the goods at the higher price, the law says the higher price must still be taken off the amount you owe.\n\nYour letter introducing the buyer has to reach your mortgagee before the goods are sold. If you post the letter, it is best to send it by certified mail. Then you can check that it was delivered. If you take it to your mortgagee's office, you should get an employee to sign and date something to say that your letter has been received. Make sure you keep anything that was signed by the employee.\n\nFINALISING THE CONTRACT\n\nNo matter how the goods are sold, the money they bring in will be taken off the amount you owe.\n\nIf the goods are sold for more than what you owe, you get back what is left after—\n\n* your mortgagee gets the money owing under your mortgage; and\n\n* any person holding a prior or subsequent mortgage over the goods gets the money owing under that mortgage; and\n\n* all costs of the sale have been paid.\n\nIf the sale price of the goods does not cover the full balance on your contract, you have to pay the difference.\n\nGENERAL\n\nYou should discuss this matter with your mortgagee as soon as possible. You may be able to work out some alternative arrangement about your contract and mortgage. For example, you could ask for your contract to be varied, repayments to be deferred or action to be postponed.\n\nThe person to contact is .................................................................\n\n(name or title of officer/s)\n\nof .....................................................................................................\n\n(name of mortgagee or agent)\n\n(Office address) .......................................................................\n\n.......................................................................\n\n(Postal address) .......................................................................\n\n.......................................................................\n\nTelephone No/s .......................................................................\n\nIf you cannot come to a suitable arrangement with your mortgagee, contact Consumer Affairs Victoria immediately. If you have been **unemployed**, **sick** or there is another **good reason** why you are having problems with your contract or mortgage, then your contract may be able to be varied under the law to meet your situation.\n\nThere are other people, such as financial counsellors, who may be able to help.\n\nIF YOU HAVE ANY DOUBTS OR YOU WANT MORE INFORMATION, CONTACT CONSUMER AFFAIRS VICTORIA OR GET LEGAL ADVICE\n\n............................................................\n\n(Signature of mortgagee or agent)\n\nForm 3\n\nRegulation 15\n\nGuarantors—Notice of Intended Legal Action\n\nCredit Act 1984 (section 138)\n\n.....................................\n\n(Date)\n\nTO: .......................................................................................\n\n(name of guarantor)\n\n........................................................................................\n\n(address of guarantor)\n\n........................................................................................\n\n........................................................................................\n\nFROM: ........................................................................................\n\n(name of credit provider)\n\n........................................................................................\n\n(address of credit provider)\n\n........................................................................................\n\nAfter 14 days from the time you receive this Notice\n\n.........................................................................................................\n\n(name of credit provider)\n\nintends to take legal action against you under your contract of guarantee. The credit provider's reasons are given at the end of this Notice.\n\nYou will also find at the end of this Notice—\n\n* the amount the credit provider says you owe at the date of this Notice.\n\n* details to identify your contract of guarantee.\n\n* details to identify the debtor's credit contract.\n\nYou should discuss this matter with the credit provider as soon as possible. You may be able to work out some alternative arrangement about the amount you owe.\n\nThe person to contact is ..................................................................\n\n(name or title of officer/s)\n\nof .......................................................................................................\n\n(name of credit provider)\n\n........................................................................................................\n\n(address of credit provider)\n\nTelephone: .....................................................................................\n\nIf you cannot come to a suitable arrangement with the credit provider, contact Consumer Affairs Victoria immediately. If you have been **unemployed**, **sick** or there is another **good reason** why you are having problems repaying the amount owing, then your contract may be able to be varied under the law to meet your situation.\n\nThere are other people, such as financial counsellors, who may be able to help.\n\nIf you disagree with anything in this Notice, including what it says you owe, contact Consumer Affairs Victoria or get legal advice immediately.\n\nREASONS FOR INTENDED LEGAL ACTION\n\nUnder your contract of guarantee, you agreed to pay money owing under a credit contract between\n\n................................................................................................ and\n\n(name of debtor)\n\n........................................................................................................\n\n(name of credit provider)\n\nif the debtor defaulted under the contract.\n\nThe debtor has defaulted under the contract in the following ways: (Specify details of default by debtor) ............................................\n\n........................................................................................................\n\nAlso, the debtor cannot be found even though the following inquiries have been made: (Specify details of inquiries)\n\n.........................................................................................................\n\n.........................................................................................................\n\nThe credit provider now wants you to pay out the debtor's contract, and the reasonable costs of enforcing the guarantee.\n\nAMOUNT THE CREDIT PROVIDER CLAIMS YOU OWE\n\nAs at the date of this Notice the credit provider claims you owe $.............. This amount is calculated as follows:\n\n| Net balance due under debtor's credit contract: |  | $ |\n| --- | --- | --- |\n| Reasonable costs of enforcing your contract of guarantee: |  | $ |\n| TOTAL |  | $ |\n\n\nDETAILS OF THE CONTRACT\n\nYour contract of guarantee:\n\nDate:\n\nContract No. (if any):\n\nDebtor's credit contract:\n\nDate:\n\nContract No. (if any):\n\nIF YOU HAVE ANY DOUBTS OR YOU WANT MORE INFORMATION ABOUT WHAT TO DO NEXT, CONTACT CONSUMER AFFAIRS VICTORIA OR GET LEGAL ADVICE.\n\n..................................................................\n\n(Signature of credit provider or agent)\n\nForm 4\n\nRegulation 16\n\nThings You Should Know About Guarantees\n\nCredit Act 1984 (section 142)\n\nThe law says the credit provider must give you this information about your **contract of guarantee**.\n\nThis information tells you about some of the rights and obligations of yourself and the credit provider. It does not state the terms and conditions of your contract.\n\nGUARANTEES\n\n1. What is a guarantee?\n\nA promise by you that the person who is getting credit under a credit contract will keep to all the terms and conditions. If that person does not do so, you promise to pay the credit provider all the money owing on the contract as soon as the money is asked for.\n\n2. How do I know how much the debtor is borrowing and the credit charges?\n\nThese details are on the copy of the credit contract or offer that the debtor signed. You should have been given a copy of that contract or offer before you signed the guarantee papers.\n\n3. What documents should I be given?\n\n* The document you are reading now.\n\n* A copy of your contract.\n\n* A copy of the credit contract or offer signed by the debtor.\n\n  4. What other information can I get?\n\nIf you have guaranteed repayment of a **credit sale contract** or a **loan contract**, you can write to the credit provider and ask for the following—\n\n* an extra copy of your contract of guarantee;\n\n* an extra copy of the debtor's credit sale contract or loan contract;\n\n* a copy of any other document signed by the debtor (for example, a mortgage) or by you;\n\n* a statement of the debtor's repayments under the credit sale contract or loan contract;\n\n* details of any insurance cover financed by the debtor's credit sale contract or loan contract.\n\nWhen writing to the credit provider, you must pay any fee that the law says the credit provider can charge.\n\nThe credit provider will write back to you within 14 days after receiving your request.\n\nBut the credit provider has to give you this information only once in any period of 3 months.\n\nYou can write to the credit provider and ask for the net balance due (pay-out figure) under the credit contract guaranteed by you. You will get this information within 7 days after the credit provider receives your request. If you want to, you can also ask for details of how the balance is worked out.\n\nBut the credit provider has to give you this information only once in any period of 3 months.\n\n  5. Can I cancel my contract of guarantee?\n\nYou may be able to under certain circumstances. For exact details, contact Consumer Affairs Victoria or get legal advice.\n\nIF THE DEBTOR DEFAULTS\n\n  6. Do I get any warning that the credit provider wants to take action against the debtor?\n\nIn most cases, yes. You get the same warning as the debtor. You get a notice in writing telling you why the credit provider wants to take action against the debtor. It also tells you what the debtor has to do to stop the action. The debtor has at least one month to try and fix up the problem. You should discuss the matter with the debtor immediately.\n\n7. Can the credit provider take action against me without taking action against the debtor at the same time?\n\nNo, except where—\n\n* the debtor cannot be found; or\n\n* the debtor's financial affairs are being handled under bankruptcy law; or\n\n* a court has declared that action can be taken against you without action being taken against the debtor.\n\n  8. If the debtor cannot be found and the credit provider intends to take legal action against me do I get any warning?\n\nYes. You get a notice giving you at least 14 days' warning.\n\n  9. Exactly how much do I have to pay the credit provider if the debtor defaults?\n\nYou have to pay what the debtor owes the credit provider, plus the credit provider's costs in having you honour your contract of guarantee.\n\nGENERAL\n\n10. What can I do if I am asked to pay out the credit contract and I cannot pay it all at once?\n\nTalk to the credit provider and see if some arrangement can be made about paying. If you cannot come to a suitable arrangement, contact Consumer Affairs Victoria for help. If you have been **unemployed**, **sick** or there is another **good reason** why you are having problems with your contract, then your contract may be able to be varied under the law to meet your situation.\n\nThere are other people, such as financial counsellors, who may be able to help.\n\n  11. If I pay out money for a debtor, is there any way I can get it back?\n\nYou can sue the debtor. But remember, if the debtor cannot pay the credit provider, the debtor probably cannot pay you back for a while, if at all.\n\n  12. What happens if I go guarantor for a person who is under 18 when the person signs a credit contract?\n\nYou are responsible for the full debt if the contract of guarantee had a clear and obvious warning near your signature. The warning had to tell you that the courts might not let you sue the debtor if you have to pay out the credit contract for the debtor.\n\n  13. Do I have any other rights and obligations?\n\nYes. The law does give you other rights and obligations. You should also READ YOUR CONTRACT carefully.\n\nIF YOU HAVE ANY DOUBTS OR YOU WANT MORE INFORMATION, CONTACT CONSUMER AFFAIRS VICTORIA OR GET LEGAL ADVICE.\n\nPLEASE KEEP THIS SUMMARY. YOU MAY WANT SOME INFORMATION FROM IT AT A LATER DATE.\n\nSchedule 2—Specified descriptive terms for use in a statement of account referred to in section 61 of the Act\n\nRegulation 11(1)\n\n|  | *Column 1* | *Column 2* |\n| --- | --- | --- |\n|  | *Matters described or referred to* | *Descriptive terms* |\n| 1. | The date of the last day of the billing cycle. | Statement date. |\n| 2. | The amount owed by the debtor under the contract— |  |\n|  | (a) on the first day of the billing cycle; and | Opening balance. |\n|  | (b) on the last day of the billing cycle. | Closing balance. |\n| 3. | Amounts payable by the debtor to the credit provider in respect of the following— |  |\n|  | (a) charges for installation of the goods; | Installation charges. |\n|  | (b) charges for maintenance of the goods; | Maintenance charges. |\n|  | (c) charges for delivery of the goods to the debtor; | Delivery charges. |\n|  | (d) insurance of mortgaged property (not being compulsory insurance); | Mortgage property insurance. |\n|  | (e) insurance against loss of the security interest of a mortgagee by reason of any Act; | Title insurance. |\n|  | (f) insurance against sickness of, accidental injury to, or disability or death of, the debtor or debtors; | Consumer credit insurance. |\n|  | (g) life insurance of the debtor or debtors; | Life insurance. |\n|  | (h) insurance against unemployment of the debtor or debtors; | Unemployment insurance. |\n|  | (i) insurance against loss of profits by the debtor or debtors. | Loss of profits insurance. |\n| 4. | The amount of the credit charge in respect of the billing cycle. | Credit charge. |\n| 5. | The date by which a payment by the debtor is requested. | Due date. |\n| 6. | The Act. | Credit Act. |\n| 7. | Any one of these Regulations. | Credit Regulation. |\n| 8. | The Director or the Minister for Consumer Affairs, Consumer Affairs Victoria, the Department of Justice, the Secretary to the Department of Justice. | Consumer Affairs Victoria. |\n\n\n═════════════\n\nEndnotes\n\n1 General information\n\nSee [www.legislation.vic.gov.au](http://www.legislation.vic.gov.au) for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.\n\nThe Credit Regulations 2024, S.R. No. 90/2024 were made on 17 September 2024 by the Governor in Council under section 167 of the **Credit Act 1984**, No. 10097/1984 and came into operation on 22 September 2024: regulation 3.\n\nThe Credit Regulations 2024 will sunset 10 years after the day of making on 17 September 2034 (see section 5 of the **Subordinate Legislation Act 1994**).\n\nINTERPRETATION OF LEGISLATION ACT 1984 (ILA)\n\nStyle changes\n\nSection 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.\n\nReferences to ILA s. 39B\n\nSidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided regulation, rule or clause of a Schedule is amended by the insertion of one or more subregulations, subrules or subclauses the original regulation, rule or clause becomes subregulation, subrule or subclause (1) and is amended by the insertion of the expression \"(1)\" at the beginning of the original regulation, rule or clause.\n\nInterpretation\n\nAs from 1 January 2001, amendments to section 36 of the ILA have the following effects:\n\n• Headings\n\nAll headings included in a Statutory Rule which is made on or after  \n1 January 2001 form part of that Statutory Rule. Any heading inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, forms part of that Statutory Rule.  \nThis includes headings to Parts, Divisions or Subdivisions in a Schedule; Orders; Parts into which an Order is divided; clauses; regulations; rules; items; tables; columns; examples; diagrams; notes or forms.  \nSee section 36(1A)(2A)(2B).\n\n• Examples, diagrams or notes\n\nAll examples, diagrams or notes included in a Statutory Rule which is made on or after 1 January 2001 form part of that Statutory Rule. Any examples, diagrams or notes inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, form part of that Statutory Rule. See section 36(3A).\n\n• Punctuation\n\nAll punctuation included in a Statutory Rule which is made on or after  \n1 January 2001 forms part of that Statutory Rule. Any punctuation inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, forms part of that Statutory Rule.  \nSee section 36(3B).\n\n• Provision numbers\n\nAll provision numbers included in a Statutory Rule form part of that Statutory Rule, whether inserted in the Statutory Rule before, on or after  \n1 January 2001. Provision numbers include regulation numbers, rule numbers, subregulation numbers, subrule numbers, paragraphs and subparagraphs. See section 36(3C).\n\n• Location of \"legislative items\"\n\nA \"legislative item\" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of a Statutory Rule is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.\n\n• Other material\n\nAny explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of a Statutory Rule. See section 36(3)(3D)(3E).\n\n2 Table of Amendments\n\nThere are no amendments made to the Credit Regulations 2024 by statutory rules, subordinate instruments and Acts.\n\n3 Explanatory details\n\n1. Reg. 4: S.R. No. 141/2014.\n\n  ——\n\n  **Penalty Units**\n\n  These Regulations provide for penalties by reference to penalty units within the meaning of section 110 of the **Sentencing Act 1991**. The amount of the penalty is to be calculated, in accordance with section 7 of the **Monetary Units Act 2004**, by multiplying the number of penalty units applicable by the value of a penalty unit.\n\n  The value of a penalty unit for the financial year commencing 1 July 2024 is $197.59. The amount of the calculated penalty may be rounded to the nearest dollar.\n\n  The value of a penalty unit for future financial years is to be fixed by the Treasurer under section 5 of the **Monetary Units Act 2004**. The value of a penalty unit for a financial year must be published in the Government Gazette and a Victorian newspaper before 1 June in the preceding financial year. [↑](#endnote-ref-1)","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument updates and re‑prescribes technical matters (definitions, calculation methods, forms, notice periods and layout requirements) that the Credit Act delegates to regulation. It revokes the 2014 Regulations and replaces them with a contemporary set of prescriptions (including specific inclusions such as certain boats and fishing gear as \"farm machinery\"). The change is primarily one of updating, clarification and standardisation rather than a material expansion of the Act’s substantive reach or the kinds of matters regulated. Therefore the scope does not appear to have grown significantly beyond the Act’s original delegated purpose."},"complexity_factors":["Cross-references to many sections of the Credit Act 1984 (multiple sections cited: s.5, s.6, s.11, s.41, s.61, s.107, s.112, s.121, s.138, s.142, s.150, s.151–153)","Two alternative calculation methods for accrued credit charge (monthly-percentage on monthly balances and actuarial formula) including a special rule for month-end funding dates (reg. 9 and Schedule 1)","Multiple prescribed forms with detailed content and conditional timelines (Forms 1–4 in Schedule 1)","Mandatory terminology mapping in Schedule 2 that must be used on statements of account (reg. 11)","Layout and legibility prescriptions that impose formatting requirements (reg. 18)","Penalty referencing using penalty units and external Monetary Units Act value (reg. 11 and Endnotes)","Procedural prescription for transfer of Tribunal records to courts when courts lack transfer rules (reg. 8)","Multiple defined terms and locally defined calculation terms (e.g. \"monthly percentage rate\", \"monthly balances\")","Revocation of prior regulations and sunset provision (reg. 4 and endnotes)"],"plain_english_summary":"**What these Regulations do (mechanically)**\n\n- Revokes the 2014 Credit Regulations and replaces them with a set of technical prescriptions that operate under the Credit Act 1984 (reg. 4, reg. 2).\n- Prescribes definitions and specific items that feed into the Act (for example, what counts as “farm machinery” (reg. 6) and which insurance charges count for a statutory rebate and how that rebate is calculated (reg. 7)).\n- Sets out procedural and administrative steps (how the Tribunal’s principal registrar must prepare and send records to a court where the court lacks transfer rules (reg. 8)).\n- Specifies methods for calculating accrued credit charges (two permitted methods: a monthly-percentage application to monthly balances, and the actuarial formula in Schedule 1 as amended) and defines related terms (reg. 9).\n- Fixes time periods and form requirements: a 7‑day prescribed period for unilateral variation of credit sale and loan contracts (reg. 10); mandatory wording for items on statements of account (reg. 11 and Schedule 2); prescribed forms and content for a range of notices to debtors, mortgagors and guarantors (reg. 12–16 and Schedule 1); and minimum layout/legibility requirements for certain documents (reg. 18).\n- Prohibits advertising a rate of interest expressed other than as an annual percentage rate (APR) (reg. 14).\n\n**Who is affected**\n\n- Credit providers and mortgagees: must use the prescribed calculation methods, notices and forms; must adopt the required terminology on statements of account; must not advertise non‑APR interest statements (regs. 7–16, 18).\n- Debtors and mortgagors: receive standardised notices (Forms 1–2) explaining rights, options and timelines (Schedule 1). Those notices set the practical timelines for repossession sales etc. (Form 2: 21‑day presale period).\n- Guarantors: receive prescribed notices and an explanatory statement (Forms 3–4) and have specific minimum notice periods (regs. 15–16).\n- Registrars and courts: the principal registrar must carry out prescribed steps when transferring Tribunal records to a court lacking transfer rules (reg. 8).\n- Legal practitioners: one of the listed authorised certifiers for assignments must be an independent Australian legal practitioner (reg. 17).\n\n**Why it matters (stated purpose, then practical implications and trade‑offs)**\n\nStated purpose: the instrument says it exists to supply technical detail the Act leaves to regulation — definitions, calculation methods, forms, time periods and presentation rules (reg. 1).\n\nPractical implications, incentives and trade‑offs:\n- Standardisation and consumer clarity: prescribed forms, terminology (Schedule 2) and layout rules (reg. 18) reduce variation in notices and account statements. That lowers search and comprehension costs for consumers and for regulators enforcing disclosure rules (regs. 11, 12–16, 18).\n- Compliance costs for industry: lenders and service providers must update templates, processes, staff training and IT systems to produce the specified wording, formats and calculation outputs. Small lenders and brokers face fixed costs to convert documents and systems.\n- Pricing / advertising effects: the ban on stating interest in any form other than APR (reg. 14) constrains marketing copy; lenders must present APRs, which are intended to make product comparison easier but may require marketing changes.\n- Calculation clarity and operational impact: the regulations prescribe two concrete methods to compute accrued credit charges (reg. 9). The explicit treatment for loans financed late in the month (28–31) clarifies how “unequal” intervals are handled; this reduces legal uncertainty but may require lenders’ accounting systems to implement the actuarial or monthly method precisely.\n- Notices and timing impose behavioural constraints: the 7‑day prescribed period for unilateral variation (reg. 10) and the time windows in the prescribed forms (for example, 21 days before sale in Form 2; 14 days’ warning to guarantors in Form 3) set minimum delay requirements before certain creditor actions. That changes the timing of creditor enforcement and gives debtors/guarantors minimum time to respond or seek help.\n- Enforcement and penalties: failure to give the required statement of account terminology carries a penalty of 5 penalty units (reg. 11). The explanatory material records one penalty unit as $197.59 for 2024–25, so 5 units = approximately $987.95 (amounts will change year to year under the Monetary Units Act).\n\n**Who pays, who decides, and what behaviour changes**\n- Who pays: credit providers and mortgagees carry the direct compliance costs (document redesign, staff/time, system changes), and potentially penalties for non‑compliance. Debtors may indirectly bear some costs if providers alter fees or pricing to cover compliance expenses.\n- Who decides: the regulations require certain fixed behaviours by credit providers, the Tribunal’s principal registrar, and courts; individual firms retain choices about operational implementation so long as they meet the specified outputs (wording, forms, calculations).\n- Behavioural change: lenders must provide standardised disclosures, advertise only APRs, use the prescribed calculation methods, and give minimum notice periods before enforcement steps; debtors/guarantors receive uniform information and minimum response times.\n\n**Implementation risks and administrative notes**\n- Systems and legacy contracts: lenders will need to ensure historical contracts and systems can produce the newly prescribed terms and calculations. The actuarial method and the special rule for month‑end finance dates may be operationally non‑trivial.\n- Enforcement reliance: these are subordinate provisions; compliance and penalties will be enforced under the Credit Act’s regime and via Consumer Affairs Victoria and courts. The regs also sunset after 10 years (endnote: Sep 2034).\n\n(Referenced provisions: regs. 1–18, Schedule 1 and Schedule 2.)"},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"Insufficient information to assess whether the scope changed from the original intent. The provided text contains only administrative metadata (title, version history, status indicators) and does not include the substantive provisions of the regulations or any explanatory materials that would allow comparison of original and current scope."},"complexity_factors":["Only metadata and version history were provided — no substantive legal content was available for analysis","Cannot assess cross-references to parent Acts or other regulations without the actual text","The word 'Credit' suggests potential complexity in the underlying subject matter, but this cannot be confirmed from the provided text","Delegated legislation (statutory rules) can be complex when read alongside their enabling Act, but the enabling Act is not identified here"],"plain_english_summary":"This is a Statutory Rule (No. 90/2024) titled \"Credit Regulations 2024\" — delegated legislation in force and consolidated — that regulates matters relating to credit. It is likely to affect borrowers, lenders, banks, finance companies, mortgage brokers and consumers seeking loans.\n\nThe actual regulatory text isn’t provided here, so the specific rules, obligations or impacts cannot be determined without the full instrument."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The regulations appear consistent with the original intent of the Credit Act 1984—providing procedural and administrative detail for consumer credit protection. The 2024 version replaces the 2014 regulations without apparent expansion into new substantive areas; it maintains the traditional scope of prescribing forms, calculation methods, and procedural requirements."},"complexity_factors":["Multiple cross-references to the Credit Act 1984 and other Victorian legislation (Fisheries Act 1995, Legal Profession Uniform Law Application Act 2014)","Mathematical formulas with defined variables for insurance rebate calculations (Regulation 7) and credit charge accrual (Regulation 9)","Four detailed prescribed forms in Schedule 1 with extensive explanatory text and formatting requirements","Nested definitions requiring understanding of actuarial methods and monthly percentage rates","Specific formatting mandates for documents (bold typeface, upper and lower case, lines/boxes) in Regulation 18","Tabular schedule (Schedule 2) mapping 15 specific descriptive terms to accounting concepts"],"plain_english_summary":"These regulations set out the detailed rules for how credit providers (like banks, car finance companies, and retailers offering hire-purchase) must operate under Victoria's Credit Act 1984. They cover practical matters like:\n\n**What it does:**\n- **Calculating interest charges**: Sets out the mathematical formulas lenders must use to work out how much interest has built up on a loan or credit sale.\n- **Standardised documents**: Requires lenders to use specific forms and wording when dealing with borrowers who fall behind on payments, when repossessing goods, and when pursuing guarantors (people who've promised to pay if the borrower defaults).\n- **Consumer protections**: Mandates what information must appear in default notices and repossession warnings, including contact details for Consumer Affairs Victoria and advice about seeking financial counselling.\n- **Advertising rules**: Bans lenders from advertising interest rates unless they're expressed as an annual percentage rate (APR).\n- **Farm machinery definitions**: Clarifies that fishing boats and gear count as farm machinery for certain purposes under the Act.\n- **Insurance rebates**: Provides a formula for calculating refunds when insurance (financed through the credit contract) is cancelled early.\n- **Document layout**: Specifies formatting requirements—like using bold text, paragraphs, and boxes—to ensure credit contracts are readable.\n\n**Who it affects:**\n- Anyone borrowing money or buying goods on credit in Victoria (credit cards, car loans, hire-purchase agreements).\n- Guarantors—often family members or friends who co-sign loans.\n- Credit providers and their compliance teams.\n- The Victorian Civil and Administrative Tribunal (VCAT) and courts handling credit disputes.\n\n**Why it matters:**\nThese rules ensure borrowers get clear, consistent information when things go wrong—like missing payments or facing repossession. The prescribed forms prevent lenders from burying important rights in fine print and ensure people know they can seek help from Consumer Affairs Victoria or financial counsellors before losing their car or home goods."}},"importantCases":[],"_links":{"self":"/api/acts/credit-regulations-2024","history":"/api/acts/credit-regulations-2024/history","analysis":"/api/acts/credit-regulations-2024/analysis","conflicts":"/api/acts/credit-regulations-2024/conflicts","importantCases":"/api/acts/credit-regulations-2024/important-cases","documents":"/api/acts/credit-regulations-2024/documents"}}