Credit

Question 1

Debt

Liability

Answer 1

Debt: “money owing from one person to another”

Liability: “a legally enforceable financial obligation to pay, such as the cost of a meal.”

The debt or liability incurred must be legally enforceable.

Question 2

Obligation to pay as per Fisher v Raven

What does “credit” refer to?

Answer 2

“Credit refers to the obligation on the debtor to pay or repay, and the time given for them to do so by the creditor.

Credit does not extend to an obligation to supply services or goods.”

Question 3

3rd Person

Answer 3

Under the extended definition of “obtain” in S 217 of Crimes Act, it will be sufficient that the defendant obtained the extension of credit to another person.

Examples:

• obtaining money on loan
• extending existing overdraft facilities
• renting or leasing a dwelling

Question 4

Intention to deceive and timing
What is insufficient? (3)
R v McKay

Answer 4

Gaining credit is not itself unlawful unless it is accompanied by an intent to deceive. The intention MUST EXIST when the deception is perpetrated.

Intention to deceive is not disclosed merely because of:

• delay or non-payment of debt
• inability to perform a bona fide intention
• withholding payment due to genuine dissatisfaction with a service.

R v MCKAY - booked a room, offered to pay in advance. He was told to pay in the morning, but left without paying.

“On appeal it was held that the credit had been obtained on booking in but at that time the accused did not possess an intention to deceive.”

Question 5

Intangible thing

Answer 5

Credit is intangible. Credit obtained must be in respect of a monetary transaction.

If the defendant obtains a non-monetary benefit, the appropriate charge may be under S 240(1)(a).

E.g. to enter a restaurant, order a meal without intending to pay is obtaining credit by deception.

If a shopkeeper mistakes a customer for someone else and gives them credit, the customer is guilty of obtaining credit by deception if they are AWARE of the MISTAKE and accept the credit with no intention of paying later.

Question 6

Hire Purchase

Answer 6

Where goods are obtained on HP by a false representation, the offence committed is deception.

However, if the offender later sells the goods to another, the offender commits theft by conversion. The offender never receives title for goods fraudulently obtained on HP.

S 240(1)(c) - relates to inducing or causing any other person to deliver over etc any document or other thing capable of being used to derive a pecuniary advantage. May be more appropriate on these situations.