National Consumer Credit Protection Act 2009

A lessee who has been given a default notice under section 179D may, at any time before the end of the period specified in the notice, request (a postponement request), orally or in writing, that the lessor negotiate a postponement of:

the enforcement proceedings; or

any action taken under such proceedings; or

the operation of any applicable acceleration clause.

If the lessee gives the postponement request, the lessor must, within 21 days after the day of receiving the request, give the person a written notice:

that states whether or not the lessor agrees to negotiate a postponement; and

if the lessor does not agree to negotiate—that states:

the name of the AFCA scheme; and

the person’s rights under that scheme; and

the reasons for not agreeing to negotiate.

If the lessee gives the postponement request, the lessor must not begin enforcement proceedings unless:

the lessor has given the lessee a notice under subsection (2) in response to the postponement request; and

the period of 14 days, starting on the day the lessor gives the notice under subsection (2), has expired.

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 (3) may end before, at the same time as, or after the end of the period for remedying the default specified in the default notice.

However, the lessor may take possession of goods hired under the consumer lease if the lessor reasonably believes that:

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

urgent action is necessary to protect the goods.

Subsections (2) and (3) are offences of strict liability.

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