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.
Please note, this information does not apply to mortgages and repossession of real property, such as houses. For more information in relation to the repossession of houses, please see our Home Loans page.
A lender or their agent (someone acting on behalf of the lender) must not enter residential property to repossess the goods unless they are authorised:
a) by a court; or
b) in writing, by an occupier of the residential premises.
A lender may request information regarding the location of the goods. You have 7 days to comply with their request. It is a criminal offence to refuse compliance with the lender’s request.
Refusing consent may also increase the costs of recovery as the credit provider will need to pursue a court order to authorise entry. This may be added to the overall expenses for recovering the debt.
Within 14 days of repossession the lender must give you a written notice, which must state:
The lender is not allowed to sell the goods within 21 days after this written notice is provided to you.
If the debt has not been paid in this period, the lender can either:
After the goods have been sold, the lender must provide you a written notice of:
The lender is entitled to deduct repossession and sale costs from the proceeds of the sale.