Credit (Continuing Credit Contracts—Fees and Charges) Order 1993
CREDIT (CONTINUING CREDIT CONTRACTS—FEES AND CHARGES) ORDER
1993
QueenslandCredit Act
1987CREDIT(CONTINUINGCREDITCONTRACTS—FEESANDCHARGES)ORDER1993Reprinted as in force on 5 October
1993(includes amendments up to SL No. 362 of
1993)Reprint No. 1 *This reprint is
prepared bythe Office of the Queensland Parliamentary
CounselWarning—This reprint is not an authorised
copyNOT FURTHER AMENDEDLAST REPRINT
BEFORE REPEALSee SIA s 54*Minor
differences in style between this reprint and another reprint with
the same number are due to theconversion to
another software program. The content has not changed.
Information about this reprintThis
order is reprinted as at 5 October 1993.The
reprint—•shows the law as amended by all
amendments that commenced on or before that day(Reprints Act
1992 s 5(c))•incorporatesallnecessaryconsequentialamendments,whetherofpunctuation,numbering or
another kind (Reprints Act 1992 s 5(d)).The reprint
includes a reference to the law by which each amendment was
made—see listof legislation and list of annotations in
endnotes.Minor editorial changes allowed under the
provisions of the Reprints Act 1992 have beenmade to use
aspects of format and printing style consistent with current
drafting practice(s 35).Also see endnotes
for information about when provisions commenced.
s13Credit
(Continuing Credit Contracts—Fees andCharges) Order
1993s3CREDIT (CONTINUING CREDITCONTRACTS—FEES AND CHARGES) ORDER1993[as amended by all amendments that
commenced on or before 5 October 1993]1Short
titleThisorderincouncilmaybecitedastheCredit(ContinuingCreditContracts—Fees and Charges) Order 1993.2CommencementThis order in
council commences on 1 August 1993.3Variation of application of Act (s.21 of
Act)Itisdeclaredthat,inrelationtotheprovisionofcreditunderacontinuing credit contract, the
provisions of the Act do not prevent—(a)theimpositionandcollectionunderthecontractofchargesorfees(inadditiontointerest)bythecreditproviderfortheprovisionandoperationofthecontractifthecreditprovidercomplies with section 4 and, if applicable,
section 8; and(b)thevariationofthecontractandthegivingofnoticeofthevariationundersections3(c)and5insteadofthemannerotherwise required under the Act; and(c)a credit provider varying the contract
without prior notice if thevariation is limited to one or more of
the following—(i)avariationoftheannualpercentageratethatreducestheannual percentage rate;(ii)avariationthatotherwisereducesthedebtor’smonetaryobligation under the contract;(iii)avariationthatincreasesthetimeforpaymentoftheamount that is or
may be standing to the debit of the accountkept for the
purposes of the contract; and
s44Credit
(Continuing Credit Contracts—Fees andCharges) Order
1993s4(d)a credit provider
from lawfully entering into an account kept forthe purposes of
the contract or from including in a statement ofaccountanamountthatexceedsthecashpriceiftheamountentered or
included is the amount charged by the supplier for thesupplyofthegoodsorservicestothedebtorandinsuchcircumstances the
amount entered or included is taken to be thecash price;
and(e)acreditproviderfromusingamethodthatispermittedundersection7(2)tocalculatethemaximumamountofthecreditcharge for a billing cycle; and(f)acreditprovider,withoutgivingastatementinwritingundersection70ofthe Actorastatementofnetbalancedueundersection 105 of
the Act, from entering into an account (whether asan
opening balance or otherwise) under a new contract that wasmadeinconsiderationofthedischargeofapreviouscontractwith
the debtor—(i)anamountequivalenttotheamountowedundertheprevious contract when it was discharged;
and(ii)anyadditionalamountsthatcouldhavebeenenteredintothe
account kept by the credit provider for the purposes ofthepreviouscontractifthecontracthadnotbeendischarged.4Application of s.3(a)Section 3(a) only
applies if—(a)in the case of a contract entered into
that on formation includesterms and conditions that impose fees
or charges (in addition tointerest)—the credit provider in or
with the notice given to thedebtor under
section 60 of the Act discloses the cost of the credittothedebtorintheformsetoutintheScheduleorinasubstantially
similar form to that form—(i)specifying the
amounts of all fees and charges or, if the feesandchargescannotbespecified,supplyingabriefdescription of
the basis on which the fees and charges arecalculated;
and(ii)specifying when all fees and charges
will become payable;and
s55Credit
(Continuing Credit Contracts—Fees andCharges) Order
1993s7(b)any fee or charge
included in the closing balance of a statementof account given
under section 62 of the Act is disclosed in thestatementofaccountforthebillingcycleinwhichthefeeorcharge is
debited.5Alteration of s.61 notice(1)It is declared that a credit provider
is taken to have given sufficientnoticeinrespectofavariationundersection61(1)(a)ofthe Actforavariation to take effect on the expiry
of the notice period if—(a)the credit
provider—(i)givesatleast28cleardaysnoticeofthevariationtothedebtorbypublishingapressadvertisementoutliningthevariationinanewspapercirculatinggenerallyinQueensland; and(ii)advises the debtor of the variation in
writing not later thanthe date when the next statement of
account is given to thedebtor under section 62 of the Act
after the end of the noticeperiod mentioned in subparagraph (i);
or(b)thecreditprovidergivesatleast28cleardaysnoticeofthevariation to the debtor in
writing.(2)It is declared that if a credit
provider gives notice of a variation inwriting under
subsection (1), section 61(2)of the Act has no effect.6Alteration of form 6 noticeIt is
declared that, for the purposes of complying with section 59 of
theAct,acreditprovidermayincludethefollowingparagraphinsteadofparagraph 5 in form 6 under theCredit Regulation 1988—‘Generally, you get at least 7 clear days
notice. However, if the changeincreases the
interest rate, increases the credit charge, increases yourrepayments or shortens the time for
repayment, 28 clear days notice ofthe variation
must be given by press advertisement or in writing.’7Maximum amount of credit charge(1)In this section—
s86Credit
(Continuing Credit Contracts—Fees andCharges) Order
1993s8“daily percentage rate”, in
relation to a continuing credit contract, meansthe rate
determined by dividing the annual percentage rate under thecontract by 365;“periodicpercentagerate”,inrelationtoacontinuingcreditcontract,meanstheratedeterminedbydividingtheannualpercentagerateunder the contract by the number of
billing cycles that would occurunder the
contract if it were in force for 1 year.(2)Itisdeclaredthatthemaximumamountofthecreditchargeinrespect of the billing cycle of a
contract may be calculated—(a)as the sum of the
amounts obtained by—(i)applyingthedailypercentageratetotheunpaiddailybalances during the billing cycle relating
to any or all of theamounts owed by the debtor under the
contract; or(ii)applyingtheperiodicpercentageratetoanyoralloftheamounts owed by the debtor under the
contract immediatelybefore the start of the billing cycle;
or(iii)applying the
periodic percentage rate to the average of thedaily balances
for the billing cycle relating to any or all ofthe amounts owed
by the debtor under the contract; or(b)byapplyingacombinationofthemethodsofcalculationmentioned in
paragraph (a), but not so as to apply more than onemethodtoanyparticularamountinrespectofanyparticularperiod; or(c)byanothermethodofcalculationifthemaximumamountofcreditchargeinrespectofabillingcyclederivedusingthemethoddoesnotexceedthemaximumamountthatcouldbecome payable if
any of the methods of calculation mentionedin paragraph (a)
or (b) were used.8Further application of s.3(a)(1)This section applies if—(a)acreditprovider,undersection3(a),variesacontractenteredintobefore1 August1993toimposeanannualchargeforthefirst time;
and
s97Credit
(Continuing Credit Contracts—Fees andCharges) Order
1993s9(b)thevariationhaseffectsothattheannualchargebecomespayable without the debtor, after being
notified of the variation,first agreeing in writing to the
variation or using the contract toaccess further
credit.(2)It is a condition of the variation
that the credit provider must causethe annual charge
to be refunded to the debtor or credited to the debtor’saccount if—(a)before 2 billing cycles have elapsed since
being notified of thevariation, the debtor advises the credit
provider in writing thatthe debtor does not wish the variation
to continue to have effectand returns all cards used to access
credit under the contract; or(b)the
credit provider withdraws the debtor’s right to use the
cardsand the debtor has not used the contract to
access further creditsince being notified of the
variation.(3)It is a also a condition of the
variation that the annual charge is notpayable
retrospectively.9Specified provisions of the Act have no
effectIt is declared that the following provisions
of the Act, to the extent thatthey are
inconsistent with this order, have no effect in relation to
continuingcredit contracts—(a)sections 53 to 56(1);(b)sections 60 to 62;(c)section 68(1)(b)(i);(d)sections 70, 76, 105 and 106;(e)Schedule 7.
