In reviewing this particular section of the Code the customer may propose to postpone action by entering into a repayment arrangement (s94 NCC). The application, which may be verbally or in writing, must be proposed by the customer prior to the Default Notice expiring.

As a Credit Provider you may accept a proposal to postpone enforcement proceedings and confirm this with the issue of a Notice of Postponement under s95 of the NCC. For compliance purposes the s95 Notice must outline what is required of the customer, usually a payment schedule indicating the amounts due to be paid and when but can also be non-monetary (providing evidence of registration, insurance, etc for secured goods) and the consequences of non-compliance if the s95 Notice is not complied with as stipulated in subsection (3).

It should be noted that the issue of the s95 does not stop enforcement action against other parties to the Contract. In other words each party to the Contract whether they are a Debtor, Mortgagor or Guarantor must negotiate their own postponement of proceedings.

If you would like to know more or if you would like a Notice of Postponement issued please contact us to discuss your requirements.

IMPORTANT

This article does not constitute legal advice and should not be used as such. You should obtain your own independent legal advice before acting or relying on the content of this article.