When you borrow money to buy goods, the lender will often take out a ‘security’ over those goods. This gives the lender a right to repossess and sell the goods in certain situations.

All lenders must comply with the requirements of the National Credit Code, which sets out the pre-conditions before a lender may repossess secured goods. These include:

  • The debtor must be in default (usually, a failure to make a repayment).
  • The lender must send the debtor a default notice giving 30 days to fix the default.
  • If the default is fixed within this 30-day period, the lender must not repossess the goods.
  • If the default is not fixed within this 30-day period, the lender may take steps to repossess the goods.
  • If the amount owing is less than 25% of the original amount borrowed or $10,000, whichever is the lesser, the lender must obtain a court order to repossess the goods.

For more information, including the steps a lender must take to repossess goods, see our Repossession of goods other than real property fact sheet, or contact our advice line on (08) 9221 7066.


If you have received legal or Court Documents from the lender, you may be at risk of your car being repossessed and you should contact us urgently.