Slow Discharge of PPSR Security Interest Registrations
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About the Personal Property Security Register
Automotive retail industry participants are aware that since 30 January 2012, the Personal Property Securities Register (PPSR) has been the single national register of security interests in personal property. It replaced all state based Vehicle Securities Registers.
The PPSR is administered by the Australian Financial Security Authority (AFSA). AFSA meets quarterly with various organisations including automotive industry bodies to discuss issues related to the PPSR that have an impact on the automotive retail industry. Those discussions include industry frustration with the slow or delayed discharge of security interest registrations from the PPSR by secured parties.
It is the understanding of MTA NSW that the Personal Property Securities Act 2009 (the Act), Section 167
1 mandates that any secured interest must be removed within
5 business days of the loan being paid out. It is vital that retailers are supported by secured parties on this issue as all vehicles sold by a licensed operators or auction houses must be sold with clear title.
AFSA advise that under provisions of the Act, a secured party must have a reasonable belief that they hold a security interest. Parties who contravene this requirement may be liable to pay a civil penalty.
What have Automotive Industry Associations done to assist traders with this issue?
A delegation of automotive industry members recently met with AFSA to highlight how the approach of (some) secured parties is affecting their businesses. The member delegation is in addition to scheduled quarterly meetings. Through our National Body, MTAA, we are represented on the PPSR Stakeholder and Operations Forum.
Why MTA NSW members should complete the survey below to help advise AFSA of this issue?
In an attempt to highlight to AFSA the gravity of the issue we ask that you complete a short 14 question survey regarding your experiences with the delayed removal of security interests. We seek evidence based arguments to effect any change.
You can take the survey by following this link: https://www.surveymonkey.com/r/PPSR_survey2017
This survey will include automotive retailers from all States. Please rest assured that any survey data will not reveal or identify a respondent’s details. The data may be used to highlight to AFSA the extent of the impact this issue has on our industry. It is hoped that this will create a more secure and positive trading environment for members.
For further information regarding the PPSR Survey, please contact Brenton Daniel, Division Manager.
P: 02 9016 9025.
E: [email protected]
1PPS Act (2009). Section 167
https://www.legislation.gov.au/Details/C2017C00149
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