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 consumer 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 consumer 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 consumer 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 consumer 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).

Section 83L(1): amended, on 13 January 2020, by section 27 of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).

Section 83L(2)(a): amended, on 13 January 2020, by section 27 of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).

Section 83L(3) activated paragraph (d): amended, on 13 January 2020, by section 27 of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).

Section 83L(3) disabling device paragraph (d): amended, on 13 January 2020, by section 27 of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).