Impact of Personal Property Securities Act on consumer credit

From May 2011 the Personal Property Securities Act will regulate the registration of non-land consumer credit securities, such as chattel mortgages over motor vehicles.

But the PPS Act does not affect rights and obligations arising under the National Credit Code, where the NCC applies.

Where both the PPS Act and the NCC apply concurrently, many of the provisions of the PPS Act will be taken to have been complied with if the corresponding provisions of the NCC have been complied with .

For example, when a secured party who takes possession of what the NCC calls ‘mortgaged goods’ complies with the NCC obligation to give ‘the debtor’ notice under section 102 of the NCC within 14 days, they will be taken to have complied with the obligation they have under section 130 of the PPS Act to give ‘the grantor’ notice at least 10 business days before what the Act calls ‘the collateral’ is disposed of.

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