Credit Contracts and Consumer Finance Act 2003

Subpart 3—Disabling devices

Subpart 3: inserted, on 6 June 2015, by section 51 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).

83L Use of disabling device

(1)

This section applies where a credit contract provides that the creditor—

(a)

has a security interest over consumer goods to which a disabling device is connected; and

(b)

has a right to activate the disabling device.

(2)

Neither a creditor nor a creditor’s agent may activate a disabling device unless—

(a)

there has been a breach of the credit contract by the debtor that is sufficient, according to the terms of the contract, to give rise to the creditor’s right to activate the disabling device; and

(b)

the creditor or the creditor’s agent has given the debtor reasonable notice, in advance of the activation,—

(i)

that the disabling device is to be activated; and

(ii)

about what action the debtor may take to prevent the disabling device being activated.

(3)

In this section and section 83M,—

activated, in relation to a disabling device, means that the disabling function of the device has been switched on, with the result that—

(a)

the debtor is prevented from using the consumer goods; or

(b)

the debtor’s use of the consumer goods is limited; or

(c)

the creditor is able to locate the consumer goods; or

(d)

the creditor is able to achieve any other similar outcome that is of a direct or indirect benefit to the creditor in relation to the relevant credit contract

disabling device means a device that is attached to consumer goods, the functions of which, when activated, include 1 or more of the following:

(a)

preventing the consumer goods from being used:

(b)

limiting the debtor’s use of the consumer goods:

(c)

enabling the creditor to locate the consumer goods:

(d)

achieving any other similar outcome that is of direct or indirect benefit to the creditor in relation to the relevant credit contract.

Section 83L: inserted, on 6 June 2015, by section 51 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).