Debtors have rights under banking code

The Code of Banking Practice promises to help people in difficulty. Consumers have rights to request a change to commitments if they are experiencing hardship, under personal credit contracts. If you get sued in court for debts you agree that you owe and you cannot pay in full, and cannot get your creditor to negotiate or withdraw the claim, you can ‘admit' the debt and apply to ‘pay by instalments' through the court. Ask the court's civil registry staff to help or a financial counsellor (see and For loans regulated by the Consumer Credit Code (which covers most household goods), a lender must issue a default notice advising you of the nature of the default. This sets out what is required to remedy the default and allows the borrower 30 days to rectify the problem. They cannot take further action during this 30 day period. Credit providers cannot repossess goods from private property unless they have a court order, or the borrower allows them to (voluntary surrender).When goods are repossessed, the lender must give the borrower a notice within 14 days setting out the estimated value of the goods, amount of enforcement expenses and a statement of the borrower's rights. The goods must not be sold within 21 days of the credit provider taking possession.

Source: The Daily Telegraph