Consumer Credit Regulations – Section 63
(Statutory Instrument 27/2008)
Statutory Instrument 27/2008 .. in force 25 February 2008
ARRANGEMENT OF REGULATIONS
| 1. | Citation |
| 2. | Interpretation |
| 3. | Forms generally |
| 4. | Calculation of charges |
| Schedule 1 | |
| Schedule 2 | |
CONSUMER CREDIT REGULATIONS – SECTION 63
Commencement [25 February 2008]
1. Citation
These Regulations may be cited as the Consumer Credit Regulations.
2. Interpretation
In these Regulations “Act” means the Consumer Credit Act.
3. Forms generally
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(1) A credit-sale agreement pursuant to section 4 of the Act shall be in the form prescribed in Form 1 of Schedule 1.
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(2) For the purposes of section 8 of the Act—
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(a) a hire-purchase agreement shall be in the form prescribed in Form 2 of Schedule 1;
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(b) the financial details to be shown on the first page of a hire-purchase agreement shall be in the form prescribed in Form 3 of Schedule 1;
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(c) the notice to be included in the note or memorandum of a hire-purchase agreement shall be in the form prescribed in Form 4 of Schedule 1.
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(3) A notice of intention to repossess pursuant to section 26 of the Act shall be in the form prescribed in Form 5 of Schedule 1.
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(4) A layaway plan pursuant to section 35 of the Act shall be in the form prescribed in Form 6 of Schedule 1.
4. Calculation of charges
Charges in relation to an agreement shall be calculated pursuant to section 50 of the Act in accordance with the formula prescribed in Schedule 2.
Schedule 1
(Regulation 3 (1))
FORM 1
FORM OF CREDIT-SALE AGREEMENT
This Agreement is made this day of ................................................... [ ]
between ____________________ and ___________________ for the
Insert name and address of buyer Insert name and address of Owner
purchase of the following goods on credit sale:
| Quantity | Description of Goods | Regular price |
| |
|
Other costs:
Total purchase price:
Rate of Interest:
Number of installments: Amount of installments:
Date for payment of installments:
IN WITNESS WHEREOF the parties hereto have set their hands on the date set out above.
____________________ _______________________
Signature of Seller Signature of Buyer
FORM 2
(Regulation 3(2)(a))
HIRE-PURCHASE AGREEMENT
Account Number:
On the ____________________________ (“the Owner”) agrees to supply
Insert date and name and address of Owner
the goods described below on Hire Purchase to _______________________ (“the Hirer”).
Insert name and address of hirer
| Quantity | Description of Goods | Price |
| | |
TERMS AND CONDITIONS
(Insert terms and conditions here)
Other costs:
Total purchase price:
Rate of Interest:
Number of installments: Amount of installments:
Date for payment of installments:
NOTICE
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1. Early completion of this agreement will entitle the Hirer to rebates greater than the statutory rebates as follows: [ Owner must specify a statement of particulars of the rebates to which the Hirer may be entitled in the event of early completion of the agreement by the Hirer]*; or
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2. Early completion of this agreement will entitle the Hirer to statutory rebates in accordance with section 23 of the Act.
* delete as applicable.
IN WITNESS WHEREOF the parties hereto have set their hands on the date set out above.
___________________
Signature of Owner
I have been informed of the cash price of the goods before entering into this Agreement and agree to the terms and conditions set out in this Agreement.
_____________________
Signature of the Hirer
Witness to Hirer's signature
Name _________________________
Address ________________________________________________.
FORM 3
(Regulation 3(2)(b))
FINANCIAL DETAILS TO BE SHOWN ON THE FIRST PAGE
OF EVERY HIRE-PURCHASE AGREEMENT
Regular price A$
(1) Less deposit
(a) Cash $
(b) Trade-in allowance $
B Total $
(2) Add
(a) Transportation $
(b) Insurance $
(c) Installation $
(d) Other Charges (specify) $
C Total $
(3) Balance/Credit Extended
(Total of A minus B plus C) D Total $
(4) Charge for Credit
(specify rate of interest and amount) E Total $
(5) Total Interest? Balance Payable Total $
(6) Payment Terms
Length of Agreement (in months)
(7) Monthly installments $
Total Purchase Price $
FORM 4
(Regulation 3 (2) (c))
NOTICE TO BE INCLUDED IN NOTE OR MEMORANDUM
OF HIRE-PURCHASE AGREEMENT
RIGHT OF HIRER TO TERMINATE AGREEMENT
1. The hirer has the right to complete the agreement at any time and if you do you will be entitled to a rebate of the following charges payable under the agreement namely:-
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(a) the hire purchase charges;
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(b) for insurance, if any; and
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(c) maintenance or repairs, if any. (See section 23).
2. The hirer may, at any time before the final payment falls due, terminate this agreement by giving notice, in writing, to the owner, of the intention to so terminate this agreement.
3. The hirer must then pay any installments which are due and in arrears at the time when he or she gives notice.
4. If the hirer does not deliver the goods to the owner at or prior to the time mentioned in paragraph 2, the notice of termination will be ineffective and the agreement will remain in force.
5. If the goods have been damaged owing to the hirer having failed to take reasonable care of them, the owner may sue him or her for the amount of the damage unless that amount can be agreed between the hirer and the owner.
6. The Hirer should see whether this Agreement contains provisions allowing him or her to put an end to the Agreement on terms more favourable to him or her than those just mentioned. If it does he or she may put an end to the Agreement on those terms.
RESTRICTION OF OWNERS RIGHT TO RECOVER GOODS
WHERE 70% OF THE HIRE PURCHASE PRICE HAS BEEN PAID
1. (After $ (here insert an amount equal to 70% of the Hire Purchase price) has been paid then) unless the Hirer has himself or herself put an end to the agreement the Owners of the goods cannot take them back from the Hirer without the Hirer's consent unless the Owners obtain an order from the Court.
2. If the owners apply to the Court for such an Order the Court may if the Court thinks it just to do so allow the Hirer to keep either –
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(a) the whole of the goods on condition that the Hirer pay the balance of the price in the manner ordered by the Court; or
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(b) a fair proportion of the goods having regard to what the Hirer has already paid.
RESTRICTION OF OWNERS RIGHT TO RECOVER GOODS WHERE
LESS THAN 70% OF THE HIRE PURCHASE PRICE HAS BEEN PAID
1. Where less than $ (here insert an amount equal to 70 % of the Hire Purchase Price) has been paid and the Hirer has failed to pay any installment of the Hire Purchase price, the Owners of the goods cannot take them back from the Hirer without the Hirer's consent unless the Owner has given to the Hirer 21 clear days written notice of its intention to do so.
2. If within the set period of 21 days the Hirer pays to the Owner all installments of the Hire Purchase price due at the date of the issue of such notice the Owner will not be entitled to repossess the goods.
FORM 5
(Regulation 3(3))
NOTICE OF DEFAULT AND INTENTION TO REPOSSESS
TO: [Insert name and address of hirer]
TAKE NOTICE that you are in default under your hire-purchase agreement with [Insert Full Name of Owner] which is dated the day of 20 and which relates to [Insert description of goods].
Your default consist of:
[Specify the defaults complained of]
YOU ARE REQUIRED, within 21 days after the service of this notice on you–
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(a) To pay the arrears of installments which now amount to $ made up as follows – [Insert a statement showing how the arrears are made up]; and
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(b) To remedy other breaches of the agreement by [Insert statement of the actions which the hirer must take to remedy breaches of the agreement in so far as they are capable of being remedied].
AND IF YOU FAIL to comply with these requirements, within 21 days after the service of this notice on you, the goods hired under this agreement will be repossessed.
Dated this .................... day of ........................................, ....................
Owner's signature
FORM 6
(Regulation 3(4))
LAYAWAY PLAN
Store Address
Telephone
Date:
Customer Name:
Customer Address:
Description of good –
Colour
Size
Stock number
Model number
Trade name or manufacturer
Required Payment amounts
Sales Price
Layaway Charge
Other Charges
Total Price
Less Deposit
Balance Due
Your payments of at least $.................... are due on the .................... day of each month,
for months, beginning .....................
Final payment is due by .....................
Refund and Cancellation and late payment policy
Consumer's signature Seller's signature
Schedule 2
(Regulation 4)
FORMULA FOR CALCULATING AGREEMENT CHARGES
Agreement charges shall be calculated in accordance with following formula–
R = 100 x c
T x P
Where–
R is the agreement charges calculated as a rate per cent per annum;
C is the amount of hire-purchase charges expressed in dollars and fractions of dollars;
T is the time that elapses between the time fixed by or under the agreement for the making of the first installment and the time so fixed for the making of the last installment, together with–
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(a) one week where the installments are payable under the agreement at regular weekly intervals;
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(b) two weeks where the installments are payable under the agreement at regular fortnightly intervals; or
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(c) one month where the installments are payable under the agreement at regular monthly intervals;
expressed in years and fractions of years; and
P is the difference between the cash price of the goods and the amount of the deposit, together with –
-
(a) freight, if any;
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(b) insurance, if any; or
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(c) any other fees;
expressed in dollars and cents.