National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

See section 3 of the National Credit Act.

PART 11 - CONSUMER LEASES  

Division 8 - Repossession, termination and enforcement of consumer leases  

Subdivision C - Enforcement of consumer leases  

179G   Requirements to be met before lessor can enforce an acceleration clause  

179G(1)    
An acceleration clause of a consumer lease is to operate only if:

(a) the lessee is in default under the lease; and

(b) the lessor has given to the lessee a default notice under section 179D; and

(c) the default notice contains an additional statement of:

(i) the manner in which the liabilities of the lessee under the consumer lease would be affected by the operation of the acceleration clause; and

(ii) the amount required to terminate the lease (as accelerated); and

(d) the default has not been remedied within the period specified in the default notice (unless the lessor reasonably believes that the default is not capable of being remedied).

179G(2)    
However, a lessor is not required to give a default notice under section 179D or to wait until the period specified in the default notice has elapsed before bringing an acceleration clause into operation, if:

(a) the lessor reasonably believes that it was induced by fraud on the part of the lessee to enter into the consumer lease; or

(b) the lessor has made reasonable attempts to locate the lessee but without success; or

(c) the court authorises the lessor not to do so; or

(d) the lessor reasonably believes that the lessee has removed or disposed of goods hired under a consumer lease, or intends to remove or dispose of goods hired under the lease, or that urgent action is necessary to protect the goods.