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  

179F   Effect of hardship notices on enforcement  

179F(1)    
This section applies if:

(a) a lessor is required to give a default notice under section 179D before beginning enforcement proceedings; and

(b) before or after the lessor gives the default notice, the lessee gives the lessor a hardship notice (the current hardship notice ) under section 177B; and

(c) either:

(i) in the 4 months before the current hardship notice is given, the lessee had not given the lessor another hardship notice; or

(ii) in that 4-month period, the lessee had given the lessor one or more other hardship notices, but the lessor reasonably believes that the basis on which the current hardship notice was given is materially different from the bases on which the other hardship notices were given.

179F(2)    
The lessor must not begin enforcement proceedings against the lessee unless:

(a) the lessor has given the lessee a notice under paragraph 177B(4)(b), in response to the current hardship notice, stating that the lessor and the lessee have not agreed to change the consumer lease; and

(b) the period of 14 days, starting on the day the lessor gave the notice under paragraph 177B(4)(b), has expired.

Criminal penalty: 50 penalty units.

Note:

The lessor must allow the lessee at least 30 days from the date of the default notice to remedy the default - see section 179D. The 14-day period in subsection (2) may end before, at the same time as, or after the end of the period for remedying the default specified in the default notice.

179F(3)    
However, the lessor may take possession of goods hired under a consumer lease if the lessor reasonably believes that:

(a) the lessee has removed or disposed of the goods, or intends to remove or dispose of them; or

(b) urgent action is necessary to protect the goods.

179F(4)    
Subsection (2) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code .