Document ID: chunk:federal_register_of_legislation:C2012A00130:clause:5_179d:p1
Version: federal_register_of_legislation:C2012A00130
Segment Type: clause
Provision Reference: sch 5 cl 179D (pt 1/2)
Character Range: 131237–133923

179D  Requirements to be met before lessor can enforce consumer lease against defaulting lessee

Enforcement of consumer lease
 (1) A lessor must not begin enforcement proceedings against a lessee in relation to a consumer lease unless:
 (a) the lessee is in default under the lease; and
 (b) the lessor has given the lessee a default notice, complying with this section, allowing the lessee a period of at least 30 days from the date of the notice to remedy the default; and
 (c) the default has not been remedied within that period.
Criminal penalty: 50 penalty units.
Note: If a lessee has given a lessor a hardship notice or a postponement request there may be extra requirements that the lessor must comply with before beginning enforcement proceedings—see sections 179F and 179H.

Default notice requirements
 (2) A default notice must contain a prominent heading at its top stating that it is a default notice and specify:
 (a) the default; and
 (b) the action necessary to remedy the default; and
 (c) a period for remedying the default; and
 (d) the date after which enforcement proceedings in relation to the default, and, if relevant, repossession of goods hired under the lease may begin if the default has not been remedied; and
 (e) the information prescribed by the regulations about the lessee's right to:
 (i) give a hardship notice under section 177B; or
 (ii) give a postponement request under section 179H; or
 (iii) make an application to the court under sections 177D and 179K; and
 (f) the information prescribed by the regulations about:
 (i) the approved external dispute resolution scheme of which the lessor is a member; and
 (ii) the lessee's rights under that scheme; and
 (g) that a subsequent default of the same kind that occurs during the period specified for remedying the original default may be the subject of enforcement proceedings without further notice if it is not remedied within the period; and
 (h) that, under the Privacy Act 1988, the debt may be included in a credit reporting agency's credit information file about the lessee if:
 (i) the debt remains overdue for 60 days or more; and
 (ii) the lessor has taken steps to recover all or part of the debt; and
 (i) any other information prescribed by the regulations.

When default notice not required
 (3) A lessor is not required to give a default notice or to wait until the period specified in the default notice has elapsed, before beginning enforcement proceedings, 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;