All repossession agents, as well as their employees, must be registered and licensed from 6 June 2015. Those who breach the new laws can be liable for fines up to $40,000 under the Private Security Personnel and Private Investigators Act. The mandatory licensing is one of a number of changes that increase consumer protection under the Credit Contracts and Consumer Finance Amendment Act 2014 (CCCFA). Under the CCCFA, a lender who uses an unlicensed agent will also be liable on conviction for a fine of up to $600,000.
The information in this article is for informative purposes only and should not be relied on as legal advice. Please contact Chapman Tripp for advice tailored to your situation.