Sch 2 s 14Meaning of continuing credit contract

14 Meaning of continuing credit contract

(1) If:

(a) a person (the creditor), in the course of a business carried on by the creditor, agrees with a consumer to provide credit to the consumer in relation to:

(i) payment for goods or services; or

(ii) cash supplied by the creditor to the consumer from time to time; or

(iii) payment by the creditor to another person in relation to goods or services, or cash, supplied by that other person to the consumer from time to time; and

(b) the creditor:

(i) has an agreement, arrangement or understanding (the credit agreement) with the consumer in relation to the provision of the credit; or

(ii) is engaged in a course of dealing (the credit dealing) with the consumer in relation to the provision of the credit; and

(c) the amounts owing to the creditor from time to time under the credit agreement or credit dealing are, or are to be, calculated on the basis that:

(i) all amounts owing; and

(ii) all payments made;

by the consumer under, or in respect of, the credit agreement or credit dealing are entered in one or more accounts kept for the purpose of that agreement or dealing;

the credit agreement or credit dealing is taken, for the purposes of this Schedule, to be a continuing credit contract.

(2) If subsection (1)(a)(iii) applies, the creditor is taken, for the purposes of this section, to have provided credit to the consumer in relation to any goods or services, or cash, supplied by another person to the consumer to the extent of any payments made, or to be made, by the creditor to that other person.