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Daniel, Solicitor
Category: Australia Law
Satisfied Customers: 5710
Experience:  Bachelor of Laws (dist) Graduate Diploma in Legal Practise. Admitted NSW Supreme Court / High Court
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What must a finance company do (in case of a HP car agreement)

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What must a finance company do (in case of a HP car agreement) before it can repossess a vehicle in Victoria. I understand that they must first send a specific type of letter saying that reposession will occur within a certain timeframe unless the amount due is paid and giving the debtor 21 days in which to make amends - but that the letter is a specific type and form. Is that true? What legal device is available to me to buy some more time?


There is a need for a court order to repossess a vehicle.

You should send them a letter for proposal of payment or part payment to allow more time.

That way, if it does go to court it will show that you have tried to resolve the matter, allowing more time in any event.

Please accept.

Customer: replied 4 years ago.
With respect Daniel, I don't think it's correct that they need a court order. What does the Australian Consumer Credit Act 2011 have to say about this under Notices & Repossessions?
My car dealer cousin says he believes the new legislation very much favours the finance companies but the balancing consumer protections are provided somehow under the ACCC.
I need you to give me a specific opinion quoting relevant sections of applicable Acts. I need to quote whatever you give me back to the finance company and the reposession agent to halt their/his action.
Your advice cannot be general and must stand up in the State of Victoria.
Regards, Jim

The process is as follows: This is nationwide: The Credit Law applies to you then there are rules the lender must follow if they want to repossess your car. These requirements are: 1. you must have signed a written agreement; 2. you must have "defaulted" on your loan (for example, failed to make one or more payments on your loan); 3. the lender must give you a default notice (which tells you the payments you have failed to make) prior to repossessing your car. The notice must give you at least 30 days to remedy the default. You can use the 30 days to pay the outstanding amounts, or negotiate a reduction in payments 4. a lender cannot without the consent of the court repossess your car 5. the lender cannot take your car from your premises or anyone else's unless you agree or the person living in those premises agrees in writing (after being informed of your or their rights) to the lender entering the premises or there is a court order; 6. a lender can only repossess your car between 8am and 8pm, Monday to Saturday (and not on public holidays); 7. if you do not agree to repossession, the creditor may apply to the court for an order requiring you to hand over your car. You must comply with the court order or you can be fined. Please accept

Customer: replied 4 years ago.

Apologies for taking so long to respond. Busy day! The situation is that the agreement was between a company which is now in liquidation and I was a director and a guarantor. The liquidator obviously wants this off his hands and can't/won't meet the balloon payout. The finance company has come after me as the guarantor but wants to repossess in any case. I drive the car and am trying to make arrangements to keep it but the finance company seems intent on reposessing it nonetheless.


Well if you cannot make arrangements to make with the payments then they can repossess it.

Please accept
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