This Act prescribes detailed rules for credit sales, loan contracts and continuing credit in Western Australia. It forces credit providers and linked suppliers to give prescribed pre‑contract notices and regular statements, caps and formulas for credit charges and APR, limits on deferral/default/enforcement fees, and sets disclosure, assignment, mortgage and guarantor protections. It affects credit providers, suppliers, debtors and guarantors and changes who pays which charges, how interest and fees are calculated, and when enforcement or variation can proceed.
Disputes as to operation of s. 23, 25 or 26, court’s powers as to 47
Supplier to notify linked credit provider of rescission etc. 48
Part III — Regulated contracts
Division 1 — Credit sale contracts and loan contracts
Application of Part 49
Contracts to be in writing 50
Form of offer to enter into contract 50
Credit provider to give offeror notice of acceptance etc. 53
Credit provider to give debtor prescribed statement 53
Credit sale contracts, content of 54
Loan contracts, content of 56
Credit sale contracts that consolidate amounts due under other such contracts, content and rescission of 58
Annual percentage rate in contracts 60
Annual percentage rates for loan contracts secured by land mortgage 61
More than one rate of interest in contract etc. not permitted in contracts 61
Variation of contracts ineffective without notice 62
Breach of s. 31, 35, 36, 38, 39, 40(1) or 91(1), effect of 62
Credit provider not to enter contract that does not comply with this Division 63
Minimum credit charge, restrictions as to 63
Credit provider, on request, to give debtor etc. statement of payments etc. 64
Credit provider, on request, to give debtor etc. copy of some documents 65
Tribunal may determine reasonable legal fees etc. 66
Division 2 — Continuing credit contracts
Interpretation 67
Application of Part 68
Billing cycle, meaning and maximum period of 70
Payment of supplier by credit provider on behalf of debtor 70
Chargeable amount for billing cycle, meaning and maximum of 71
Amount payable under contract, restrictions as to 72
Credit charge for billing cycle, meaning and maximum of 72
Annual percentage rates for contracts 74
Billing cycle less than one month 75
Non‑business days 75
Credit provider to give debtor prescribed statement 76
Credit provider to give debtor certain information 76
Variation of contracts ineffective without notice 77
Credit provider to give debtor statement of account as per Sch. 7 78
Billing errors, notice, effect and correction of 80
Credit provider to give debtor request for payment etc. before starting recovery proceedings 81
Statement of account not to include opening balance in some circumstances 81
Statement of account not needed in some circumstances 82
Credit provider to pay amounts owed to debtor upon request 83
Breach of s. 3(4), 59, 61, 91(1) etc., effect of 83
Credit provider, on request, to give debtor etc. copy of notice given under s. 3(4), 59 or 60 84
Division 3 — Operation of regulated contracts
Re‑financing of credit contracts, credit provider to give debtor certain information 85
Varying credit sale contracts and loan contracts 86
Agreed deferrals of payments, charges for 88
Defaults, charges for 91
Varied contracts continue to be regulated contracts 92
Varying contracts due to illness etc. of debtor 92
Division 4 — General
Unauthorised fees, provisions in contracts as to 94
Enforcement expenses, provisions in contracts as to 95
Negating etc. right to revoke offer to enter into contract, provisions in contracts as to 95
Annual percentage rate, statement of in case of pre‑determined credit charge 96
Estimated credit charge, statement of 96
Difference between pre‑determined or estimated credit charge and calculated credit charge, liability of debtor in case of 96
Credit provider etc., assignment of rights by 97
Payments by credit provider to be in cash and in full 99
Application of payments received by credit provider 100
Appropriation of payments between 2 or more contracts 100
Tribunal may reduce credit provider’s loss due to breach of law 101
85A. Declaration by Tribunal that debtor not liable due to s. 42 or 67 104
85B. Stay of civil penalty under s. 42 or 67 pending decision of s. 85 application 104
Declaration under s. 85 as to 2 or more contracts 105
86A. Contracts with minor errors etc. may be deemed to comply with Act 107
Reduction in debtor’s liability due to Act, effect of 108
Court may dismiss charges of offences under s. 3(4), 43, 59, 61 or 64 in some cases 108
Part IV — Regulated mortgages
Division 1 — General
Term used: mortgage 110
Mortgagee’s obligations not to exceed contract’s obligations 110
Mortgage of goods to be in writing 110
Debtor entitled to copy of mortgage 111
Enforcement expenses, provisions in mortgages as to 111
Entry of premises by mortgagee, provisions in mortgages as to 112
Court order needed before entry for repossession 112
Location of goods, mortgagor may be required to disclose 113
Time and place for delivery of goods, court may determine 113
Blanket securities over property or assets prohibited 113
Agreement to mortgage future property, provisions in mortgage as to 114
Mortgages of goods, provisions in continuing credit contracts as to 115
Assignment etc. of mortgaged property to defraud mortgagee 115
Division 2 — Assignment, etc., of property
Assignment by mortgagor 115
Part V — Termination and enforcement of regulated contracts and regulated mortgages
Net balance due, calculation of 118
Net balance due, credit provider to state on request 119
Early termination of contract by debtor 120
Mortgagor may require mortgagee to sell mortgaged goods 120
Rights of credit provider or mortgagee, restrictions on exercising 121
Proceedings prohibited if s. 107 notice complied with 125
Limit on amount recoverable 125
Mortgagee’s powers, restrictions on exercising 125
Court may order delivery of goods to mortgagee 126
Mortgagee in possession of goods, restrictions on power to sell etc. 126
Mortgagor’s right to redeem goods in mortgagee’s possession 128
Sale of goods by mortgagee, application of proceeds etc. 130
Farm machinery etc., court may suspend repossession or restore possession of 133
Negotiated postponement of exercise of rights of credit provider or mortgagee 135
Part VI — Regulated contracts and regulated mortgages — general
False etc. representations, offences as to etc. 138
Court may approve removal of mortgaged goods 140
Assignment of wages etc., provisions as to in contracts etc. 140
Bills of exchange etc. as security for credit provider 140
Advertisements offering credit 141
Canvassing offers to provide credit 145
Terms of contracts etc., regulations may prescribe 146
Agents of debtors etc., agreements etc. as to 146
Contract or mortgage not illegal etc. by reason of offence 146
Notices to be given to each of 2 or more debtors etc. 147
Part VII — Contracts of insurance
Insurance for regulated contracts 148
Insurance for regulated mortgages 149
Unrequired insurance, provisions as to maintenance of in contracts etc. 150
Contracts of insurance, content of etc. 151
Premiums to be paid to insurer 152
Rejection of insurance proposals, insurers’ duties on 153
No‑claim bonus, debtor etc. entitled to 154
Insurance contracts not void etc. in some cases 155
Exclusion clauses, effect of in some cases 156
Part VIII — Contracts of guarantee
Guarantees to be in writing etc. 157
Guarantor’s liability, extent of 157
Proceedings against guarantor 157
Varying guarantees as to regulated contracts due to illness etc. of guarantor 158
Minors, guarantee for 160
Credit provider to give guarantor copy of guarantee 160
Credit provider to give guarantor prescribed statement 161
Discharge of guarantee by guarantor 161
Revocation of offer to guarantee, provisions in agreements as to 161
Part IX — Re‑opening of contracts
Unjust contracts and mortgages, meaning of 163
Tribunal may re‑open transactions for unjust contracts etc. 163
Determining if contract etc. is unjust, matters to be considered by Tribunal 164
Joinder of parties 166
Limitation on re‑opening transactions 167
Part X — General
Assigning interests under wills etc. to credit providers 168
Legibility of documents 169
Tribunal may prohibit use of illegible etc. documents 170
Tribunal may determine document is readily legible etc. 170
Illegible etc. documents, use of 171
Separation of documents 171
Signatures on documents by agents 171
Contracting‑out of Act prohibited 171
General penalty 172
Offences, time limit for prosecuting 172
Directors etc. of corporations, liability of 172
Rights etc. under other laws saved 172
Time, computing 172
Court’s powers to extend time, exercise of 173
Service of documents 173
Service by post 174
Regulations 174
Part XA — Transitional
167A. Non‑disclosures etc. before 11 Jan 1993 about insurance commission charges, effect of 176
167B. Amendments in 1992 as to description of consumer credit insurance, operation of 178
Part XI — Miscellaneous
Notices required by mortgagee under other Acts 180
Land sales, application of Part II to etc. 180
Commissioner may fix maximum annual percentage rates 181
Schedule 1 — Accrued credit charge
Schedule 2 — Statement of amount financed in relation to credit sale contract
Schedule 3 — Statement of credit charge in relation to credit sale contract
Schedule 4 — Statement of amount financed in relation to loan contract
Schedule 5 — Statement of credit charge in relation to loan contract
Schedule 6 — Annual percentage rate
Schedule 7 — Statement of account in relation to continuing credit contract
Notes
Compilation table 201
Other notes 203
Defined terms
Western Australia
Credit Act 1984
An Act relating to the provision of credit.
Part I — Preliminary
1. Short title
This Act may be cited as the Credit Act 1984.
2. Commencement
The provisions of this Act shall come into operation on such day or days as is or are respectively fixed by proclamation.
3. Application of Act and transitional provisions
(1) Except as otherwise expressly provided in or under this Act, this Act applies (notwithstanding anything to the contrary in any other Act or law) to and in respect of a contract of sale, credit contract or mortgage —
(a) if the contract of sale, credit contract or mortgage is in writing and is signed in Western Australia by the buyer, debtor or mortgagor; or
(b) where the contract of sale, credit contract or mortgage is not in writing or is in writing but is not signed by the buyer, debtor or mortgagor in Western Australia or in a recognised State —
(i) in the case of a contract of sale, if the goods or services are, or are to be, delivered or supplied in Western Australia; or
(ii) in the case of a credit contract if the credit is, or is to be, provided to the debtor in Western Australia or the debtor has, or is to have, the use or benefit of the credit in Western Australia; or
(iii) in the case of a mortgage, if property subject to the mortgage is at the date of creation of the mortgage situated in Western Australia.
(2) Subject to subsection (3), a provision of this Act that relates to a contract of sale, credit contract, mortgage or contract for the hiring of goods, does not apply to or in relation to a contract of sale, credit contract, mortgage or contract for the hiring of goods, as the case may be, made before the commencement of the provision.
(3) This Act (except sections 58, 59 and 67(1)(c) and Parts II, VII, VIII and IX) applies to and in relation to a continuing credit contract made before the commencement of Part III that, if it had been made after that commencement, would have been a continuing credit contract to which that Part applies but nothing in this Act applies to or in relation to a billing cycle that commenced before the commencement of that Part.
(4) Where, by reason of subsection (3), this Act (except sections 58, 59 and 67(1)(c) and Parts II, VII, VIII and IX) applies to and in relation to a continuing credit contract, the credit provider shall, when he first gives a statement of account referred to in section 61 after the commencement of Part III, give to the debtor a statement in accordance with section 58 and a notice stating the matters required to be stated in a notice under section 59.
Penalty: $1 000.
4. Act binds Crown
(1) Except where otherwise expressly provided by this Act, this Act binds the Crown not only in right of Western Australia but also, so far as the legislative power of Parliament permits, the Crown in all its other capacities.
(2) This Act applies to and in respect of the Crown in any of its capacities to the same extent as if the Crown were, in that capacity, a body corporate.
5. Terms used
(1) In this Act, unless the contrary intention appears —
acceptable rate of interest, in relation to a loan contract or a continuing credit contract, means an annual percentage rate that the credit provider agrees to accept so long as the debtor duly observes and performs the terms of the contract;
account charge, in relation to a continuing credit contract, means —
(a) in relation to the period of 12 months after the contract is made — the sum (not exceeding $100 or, where some other amount is prescribed, that other amount) of —
(i) any amount that, under the contract, is payable by the debtor to the credit provider as the fixed fee or other charge for entering into the contract; and
(ii) any amount that, under the contract, is payable by the debtor to the credit provider as the fixed annual fee or other annual charge in respect of that period;
or
(b) in relation to any other period of 12 months — any amount (not exceeding $50 or, where some other amount is prescribed, that other amount) that, under the contract, is payable by the debtor to the credit provider as the fixed annual fee or other annual charge in respect of that period;
accrued credit charge, in relation to a credit sale contract or a loan contract at a particular time, means —
(a) the minimum
This is an opening excerpt, not the complete document.