Hire-Purchase Regulation

The Hire-Purchase Acts, first introduced across Australia during the late 1950s, no longer regulate the form and substance of hire-purchase contracts. While they have not been replaced with product specific legislation, there is a range of laws applying to hire-purchase agreements.   As noted elsewhere, the Australian Securities & Investments Commission Act applies fair trading and unconscionable conduct rules to most hire-purchase agreements, covering conduct when they are entered, as well as their product promotion and account management.

Legislation in Victoria and Western Australia require the hirer to receive the benefit of any surplus after repossession sale in those States. Western Australia extends that right to voluntary surrender sales.

Also, as noted elsewhere in this review, New South Wales, Queensland, Victoria and Western Australia legislation lay down procedures when enforcing a hire-purchase agreement against a farmer.   In Queensland, there are calculations limiting the amount a hire-purchase financier can recover from a farmer who has defaulted.

For completeness, as a result of the National Credit Code and its predecessors, hire-purchase is no longer a form of consumer finance.