I bought electronic goods under a hire purchase agreement and stored them in my open garage. 1 year into a 6 year agreement I defaulted on payments and the goods were repossessed when I wasn’t home. Because the goods were stored in an open garage the collectors simply jumped over my fence and opened the gate from the inside and proceeded to take the goods. When my wife tried to intervene they told her that if she tried to stop them they would find me and arrest me. Were the collectors entitled to do that?
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Answer by Shamaila Khan, Kingsville 3012 VIC
- This conduct is not allowable.
- The goods are not protected goods since you are only 1 year into a 6 year agreement. The owners are legally entitled to repossess the goods provided the proper notice requirements are complied with.
- This does not give the collectors the right to enter your property while you are not home and seize the goods without your consent.
- The statements made to your wife are also likely to be considered false and misleading. It is unlawful for a collector to make such statements for the purpose of seeking your wife's compliance.
- The only way the collectors can lawfully enter your property to repossess the goods is if:
- they have a court order or warrant to enter your property to repossess the goods; and
- they have your consent to enter the property solely to collect the repossessed goods.
- A court order alone does not entitle them to use any kind of force to enter the property. Force or threatened force against you, other people living in the house or your property is strictly prohibited.
- In this example it is clear that the collectors have breached their consumer law obligations. In addition the behaviour you have described could amount to criminal trespass and a police report should immediately be filed.
- You should also keep detailed records of everything the debt collector has done as well as any correspondence and copies of police reports and make a complaint to the relevant ombudsman about the collectors’ behaviour.
- This should be done alongside ongoing attempts to resolve the dispute with the owner of the goods if you are trying to negotiate their return and a reinstatement of the contract.