Debt Collection Specialists | Sydney | LCollect
Debt Collection Agency | LCollect

Debt Collection News

Released every month our debt collection blog contains news, stories and tips to keep you informed.

Is It Time To Review Your PPSR Registrations?

Tuesday, October 30, 2018 - Posted by Michael McCulloch

Do you know when your interest on the Personal Property Securities Register (PPSR) is due to expire?

It can be one of the more challenging things that we come across in the debt collection industry. A customer has relocated several times over a number of years however the debt is believed to be secured by an asset which, if repossessed, may finalise the debt or may entice the debtor to enter into a repayment arrangement which is maintained. Upon conducting a search of the PPSR it's then found that the security interest has lapsed. You now have essentially an unsecured debt with very little or no bargaining power.

While many organations used to employ a specialists securities agents this role has gradually been phased out and is now considered a day-to-day role of administration staff who may or may not keep an accurate register and may not know or realise the implications of the interest lapsing especially where a debt has been written-off. If this sounds familiar did you know that if you have a PPSR login that you can generate a report called Registrations Due to Expire?

The report includes information such as:

  • the SPG (Secured Party Group Number);
  • registration number;
  • end date and time of the security interest;
  • collateral type;
  • collateral class;
  • serial number and serial number type; and
  • details of the Grantor

The Registrations Due to Expire Report may be an invaluable report to you to keep track of your interests on the PPSR with reports being available to download in CSV or XML format.

End of PPSR Transitional Period

Thursday, March 23, 2017 - Posted by Michael McCulloch

The final transitional period provided under the Personal Property Security Act 2009 ("PPSA") has now expired. 

What does this mean?
The transition period allowed until 30/01 for registrations that were migrated without an end date or with missing or incomplete fields to be updated and / or changed to ensure that your interest remained protected. With the transition period having now lapsed if you did not take action before this date you may find that your interest cannot be located on the PPSR.

Can amendments be made after the transition period?
In most cases the answer to this question is "yes" however some migrated registrations will need to be re-lodged.

What if there is no end date registered on the PPSR?
If no end date was entered the registration will remain on the PPSR until the expiry date recorded on the original registration or when the registration is discharged.

What happens if a registration is defective?
A registration will be deemed to be defective if it does not comply with s164 and s165 of the PPSA -

Personal Property Securities Act 2009 - Section 164 Defects in Registration - General Rule

(1)  A registration with respect to a security interest that describes particular collateral is ineffective because of a defect in the register if, and only if, there exists:
(a)  a seriously misleading defect in any data relating to the registration, other than a defect of a kind prescribed by the regulations; or
(b)  a defect mentioned in Section 165.
(2)  In order to establish that a defect is seriously misleading, it is not necessary to prove that any person was actually misled by it.
(3)  A registration that describes particular collateral is not ineffective only because the registration is ineffective with respect to other collateral described in the registration.

Personal Property Securities Act 2009 - Section 165 Defects in Registration - Particular Defects

For the purposes of paragraph 164(1)(b), a defect in a registration that describes particular collateral exists at a particular time if any of the following circumstances exist:
(a)  in a case in which the collateral is required by the regulations to be described by serial number in the register--no search of the register by reference to that time, and by reference only to the serial number of the collateral, is capable of disclosing the registration;
(b)  in a case in which the collateral is not required by the regulations to be described by serial number in the register--no search of the register by reference to that time, and by reference only to the grantor's details (required to be included in the registered financing statement under Section 153), is capable of disclosing the registration;
(c)  if the registered financing statement (as amended, if at all) indicates that a security interest in the collateral is a purchase money security interest (to any extent)--the security interest is not a purchase money security interest (to any extent) in the collateral;
(d)  in any case--circumstances in relation to the data related to the registration that are prescribed by the regulations.

What if I need further assistance?
We recommend that you obtain you own independent legal advice or contact the PPSR National Services Centre on 1300 007 777 or online

PPSA and the Importance of Perfecting Your Internest

Friday, April 15, 2016 - Posted by Philip Harvey

In the recent decision of Forge Group Power Pty Limited (In Liquidation) (Receivers and Managers Appointed) v General Electric International Inc [2016] NSWSC 52 (11 February 2016) the importance of perfecting your interest under the PPSA was emphasised.

GE leased 4 Gas Turbines (electricity generators) to Forge Power who subsequently went into administration. GE did not register their interest under the PPSA.

The rental term over 2 years provided for a total of $33 million in payments. Payments commenced January 2014. Forge Power entered administration 3 months later in March 2014.

GE attempted to argue that there were two exceptions available to it under the PPSA:

  1. A lease is not a PPS lease if GE is not regularly engaged in leasing goods (s13(2)(a)).
    In answering 1, the court may look to the global leasing activity of the company (not just Australia) and the test is performed when the lease is into. Regardless of the global test, GE was held to regularly engage in leasing activities in Australia.

  2. That the gas turbines were actually fixtures per s10. The judge noted, GE was trying to argue that its leased goods would actually be lost forever by becoming fixtures. The Judge held that the Turbines were not fixtures and subject to the PPSA.

The consequence of not perfecting their interest meant that the turbines became available to the liquidators and GE became an unsecured creditor.

Please note that this article does not constitute legal advice and should not be relied on as such.

Repairable Write-Offs can no longer be re-registered

Thursday, July 01, 2010 - Posted by Philip Harvey

The NSW government has is bringing in legislation that will ban the re-registration of all repairable written off vehicles to clamp down on car re-birthing.

This will see the value of any car you repossess that has been a write off fall dramatically. The cost of the repossession & selling costs will exceed the price obtained for the car, as the only interested parties will be parties seeking spare parts.

These changes are to take effect from August 2010.

The announcement / media release from the NSW made by the minister for Transport David Campbell is below;


The NSW Government will introduce legislation to ban the re-registration of all ‘repairable written-off’ vehicles to clamp down on car rebirthing, Minister for Transport and Roads David Campbell announced today.

Mr Campbell said the legislation will mean that write-offs will no longer be able to be sold at auctions, where the vehicles can then be re-birthed and on-sold to unsuspecting consumers.“ There is a black market for purchasing written-off vehicles at auctions, then using stolen parts to rebirth and register the car, to be sold for a tidy profit,” Mr Campbell said.


“This isn’t being done by licensed repairers - in most instances it’s not financially viable for genuine repairers to repair these cars using legitimate parts. “In many cases, it’s being done by unscrupulous operators in backyards and workshops using stolen parts, who then sell the vehicles to unwary motorists.

“Some consumers are being taken for a ride - motorists might be driving around in what’s effectively a stolen vehicle. 

“More importantly, many of these vehicles have had dodgy repairs which can mask major structural damage. It’s extremely unsafe.

“Car re-birthing is a significant problem which has been known to have links to organised crime syndicates.

“Today’s announcement will put a massive dent in these illegal operations.

“It’s estimated that as many as six out of ten of the 20,537 repairable written-off vehicles presented for re-registration in 2009 posed serious questions about the origin of the parts used to repair them.

“Around 19,000 vehicles were stolen in NSW in the 2008-09 financial year – of these, around 5,700 have not been recovered.

“Today’s announcement means any car which is written off will not be able to be reregistered even if it can be repaired.”

Mr Campbell said the NSW Government made the decision to ban repairable write-offs after a discussion paper was released for consultation in August last year.

“What we found was that consumers – as well as legitimate car dealers and repairers – wanted better protections in place,” he said.

“NSW is the first state to introduce this ban on repairable write-offs, and we would encourage other states to follow our lead and implement similar laws.

“There will be very limited exemptions to the new laws – for some vehicles written off because of hail damage, and for some classic antique cars.

“We will also strengthen written-off vehicle notification requirements – for example, vehicles currently being sent to a scrap yard for crushing are not required to be registered on the Written-off Vehicle Register (WOVR) and this presents an additional opportunity for rebirthing.”

Mr Campbell said the new laws are on top of the RTA’s Vehicle History Check service launched last year.

“The RTA’s Vehicle History Check service allows potential buyers to check whether a used car has ever been written-off anywhere in Australia,” he said.

“The service also provides customers with details of a car’s history including the number of previous owners, when it was first registered in NSW and odometer readings.

“All you need is the car’s registration plate details, vehicle type and the last four digits of the VIN/chassis number,

“It’s a simple check you can do on the RTA website for under $20.”

The new laws will be implemented following stringent legislative change and will take effect in August this year.  

REVS - Putting Them On and Keeping Them Current

Wednesday, July 01, 2009 - Posted by Philip Harvey

We have recently had 2 different examples where the security of a loan has been jeopardised and our ability to repossess the security has been limited through REVS listings not being performed in a timely manner. 

The scenarios were:

  1. REVS Listing placed 4 hours after the finance was providedIn this case example, a debtor applied for a secured car loan. The loan was granted on the basis of the security. When the funds were then provided to the debtor, the interest in the motor vehicle was not immediately listed on REVS. The listing was placed some 4-5 hours after the debtor had already received the funds, and driven the motor vehicle off the dealers lot.
    The debtor then proceeded to drive the motor vehicle down the road to another car dealer & immediately sold the vehicle. When the 2nd dealer completed the REVS check, there were no interests noted on the motor vehicle.
    Subsequently, payments on the loan were defaulted.
    We were not able to effect repossession of the motor vehicle under the above circumstances, with clear title being received by the 2nd dealer by means of a REVS check. Without going into the fraudulent activity in this example, subsequent collection of the loan to mitigate any loss is more difficult without being able to realise sale proceeds from the motor vehicle.
    To avoid this problem, we suggest that as part of a checklist before the funds are released, that you register your interest on REVS.
  2. A REVS listing lapsed before it is renewed.
    The financial provider had provided a secured loan to a debtor and listed their interest in the security on REVS. Repayments were being met for a long period of time. The interest in the security on REVS lapsed, and was not renewed by the financial provider for 7 days.
    During this period where the interest was not noted on REVS, the security was sold / transferred to an associate of the debtor & payments were subsequently defaulted.
    We were unable to effect repossession as the new owner was able to produce a REVS check showing clear title to the security.

It is therefore important to ensure that your listing with REVS is current & does not lapse

Recent Posts



Copyright © LCollect 2021 | All Rights Reserved | Licensed Mercantile Agent License #409661517 | ABN 44 089 892 688 |
Australian Credit Licence #430659
HomeSite Information | Privacy Policy