Document ID: chunk:federal_register_of_legislation:C2024C00826:clause:1_39a
Version: federal_register_of_legislation:C2024C00826
Segment Type: clause
Provision Reference: sch 1 cl 39A
Character Range: 823512–824782

39A  Limit on the application of amount of credit provided under a small amount credit contract
 (1) No part of the amount of credit provided under a small amount credit contract may be applied to pay an amount (the prohibited credit amount) to:
 (a) the credit provider; or
 (b) a person prescribed by the regulations.
 (2) Subsection (1) does not apply to:
 (a) an amount of a permitted establishment fee, or a permitted monthly fee, payable in relation to the small amount credit contract; or
 (b) an amount of a government fee, charge or duty payable in relation to the small amount credit contract; or
 (ba) if some or all of the amount of credit (the refinanced amount) is to refinance some or all of the amount of credit provided by the credit provider to the debtor under another small amount credit contract—the refinanced amount; or
 (c) an amount prescribed by the regulations.
 (3) If subsection (1) is contravened in relation to a small amount credit contract:
 (a) the debtor is not liable (and is taken never to have been liable) to repay the prohibited credit amount to the credit provider; and
 (b) the debtor may recover as a debt due to the debtor any amount paid to the credit provider to the extent that it relates to the prohibited credit amount.