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 7 - Changes to obligations under consumer leases  

Subdivision B - Changes on grounds of hardship and unjust transactions  

177B   Changes on grounds of hardship  

Hardship notice

177B(1)    
If a lessee considers that he or she is or will be unable to meet his or her obligations under a consumer lease, the lessee may give the lessor notice (a hardship notice ), orally or in writing, of the lessee ' s inability to meet the obligations.

Note:

If the lessee has given the lessor a hardship notice, there may be extra requirements (beyond those in section 179D) that the lessor must comply with before beginning enforcement proceedings - see section 179F.

Further information

177B(2)    
Within 21 days after the day of receiving the lessee ' s hardship notice, the lessor may give the lessee notice, orally or in writing, requiring the lessee to give the lessor specified information within 21 days of the date of the notice stated in the notice. The information specified must be relevant to deciding:

(a) whether the lessee is or will be unable to meet the lessee ' s obligations under the lease; or

(b) how to change the lease if the lessee is or will be unable to meet those obligations.

177B(3)    
The lessee must comply with the requirement.

Note:

The lessor need not agree to change the consumer lease, especially if the lessor:

(a) does not believe there is a reasonable cause (such as family violence, illness or unemployment) for the lessee ' s inability to meet his or her obligations; or

(b) reasonably believes the lessee would not be able to meet his or her obligations under the lease even if it were changed.

Notice of decision on changing consumer lease

177B(4)    
The lessor must, before the end of the period identified under subsection (5), give the lessee a notice:

(a) that is in the form (if any) prescribed by the regulations and records the fact that the lessor and the lessee have agreed to change the consumer lease; or

(b) that is in the form (if any) prescribed by the regulations and states:

(i) the lessor and the lessee have not agreed to change the consumer lease; and

(ii) the reasons why they have not agreed; and

(iii) the name and contact details of the AFCA scheme; and

(iv) the lessee ' s rights under that scheme.

Civil penalty: 5,000 penalty units.

177B(4A)    

Subsection (4) does not apply if the lessor and the lessee agree to a change to the consumer lease that defers or otherwise reduces the obligations of the lessee under that lease for a period not exceeding 90 days.

177B(5)    
The lessor must give the notice before the end of the period identified using the table.

Period for giving notice
	If:	The period is:
1	The lessor does not require information under subsection (2)	21 days after the day of receiving the hardship notice
2	The lessor requires information under subsection (2) but does not receive any information in compliance with the requirement	28 days after the stated date of the notice under subsection (2)
3	The lessor requires information under subsection (2) and receives information in compliance with the requirement	21 days after the day of receiving the information

Regulations may prescribe shorter periods for consumer leases

177B(6)    
The regulations may provide for subsections (2), (3), (4) and (5) to have effect in relation to consumer leases prescribed by the regulations as if a particular reference in subsection (2) or (5) to a number of days were a reference to a lesser number of days prescribed by the regulations.