Explanations & Meanings
“Accelerate Payment” – Request for immediate payment
“Accession” – Means affixed or attached. For example goods that might be attached to other goods.
“Assign” – Appoint or delegate a particular right to another person or entity.
“Balance” – Principal outstanding on given date- excludes accrued interest/penalty interest & rebates.
“Borrower” – Person disclosed as a borrower on the credit agreement / disclosure statement including their executors.
“Calculate” – Determining a numerical amount following certain rules.
“Charge” – a) Is a debit or an amount a borrower must pay. b) Also has a meaning in terms of security where collateral or goods are charged and become security for a borrower to pay an unpaid balance.
“Collateral” – Can be described as an item of personal property given or promised by the borrower to provide surety that the borrower will repay their debt as outlined in the credit agreement / disclosure statement.
“Consumer goods” – Relates to personal, domestic or household goods and not goods used in business or investment.
“Credit Agreement” – Is a contract agreed to obtain credit.
“Credit” – Is money lent. When money is lent or a credit is given it becomes a debit because of the requirement to pay it back.
“Credit Fee” – A fee charged as part of giving credit.
“Credit your account” – Upon paying an instalment, the borrower’s account will be credited with that payment and the unpaid balance will reduce.
“Debit” – Is a charge or amount of money a borrower must pay.
“Default” – An action or a non-action contrary to what was agreed to in the credit agreement / disclosure statement.
“Disclosure Statement” – Is the document that sets out key information about your credit contract
“Default Interest Charges” – In the event of financial default of an instalment and while the default continues, default interest charges will apply.
“Default Fees” – Are fees charged in the event of financial default of an instalment and while the default continues.
“Enforce or Enforcement” – An action undertaken to ensure a borrower’s conduct is what was agreed to.
“Executors, administrators and successors in title” – The person(s) who will take over the borrower’s rights and obligations in the event of the borrower’s death or inability to repay his or her debts.
“Financial Default” – Failure to pay an instalment, payment or other amount when required.
“Initial Unpaid Balance” – Is the amount the borrower owes at the beginning date of the credit agreement / disclosure statement.
“Instalment” – A regular payment usually on the same day of each week, fortnight or month.
“Interest” - The method of charging for the privilege of borrowing money, typically expressed as an annual percentage rate.
“Legal Paper” – Is a document, notice or other written paperwork outlined in the credit agreement / disclosure statement.
“Lender” – Is the person or organization lending money, including its employees and agents. As well as other persons or entities the lender assigns its rights to, or whoever takes over the lenders rights under the credit agreement / disclosure statement.
“Liability” – Is a responsibility for something you must do or an amount you must pay.
“Obligation” – Is something you must do or must not do.
“Overdue Amount” – a sum of money which should already have been paid but has not been. The borrower can only reverse the default by paying all overdue amounts plus the next payment due.
“Personal Property - Collateral and Security Interest” – Describes the goods or other personal property listed in the credit agreement / disclosure statement.
“PPSA” –Personal Property Securities Act 1999 governs the Personal Property and Security Register. Personal Property - Collateral and Security Interests are listed on the register.
“Principal” – Is the initial unpaid balance before interest is charged or the unpaid balance on which interest is charged. Once interest and fees are charged to an account they become part of the principal.
“Repayment Waiver” – A repayment waiver is where a lender agrees, for a fee, to give up their right to pursue the borrower for what they owe if the borrower is sick or injured, becomes disabled, made redundant from their job, or dies and cannot make repayments anymore.
“Repossess” – Describes the action of seizing the goods, personal property or collateral.
“Security Interest in collateral”– Is the item of personal property given or promised by the borrower that will be forfeited if the borrower does not repay their debt. That collateral may be sold to recoup the money owed by the borrower.
“Settlement Figure” – Amount required to fully repay a loan including accrued interest, penalty interest, and rebates.
Unpaid balance – Is the amount owing under the credit agreement / disclosure statement at a particular time, taking into consideration all amounts credited and all amounts debited under the agreement at that particular time.