How does PPSR concern you as a debtor

You will have your personal details entered in the PPSR

When you are using personal property as security for a loan or other type of credit transaction or buying personal property on hire purchase, the secured party will register details of the interest in the PPSR. Those details include your name, your address, your date of birth, and a description of the personal property.

The PPSR will not record financial details of the transaction, i.e., the value of the personal property or the amount borrowed. This kind of registration is known as a financing statement.

You are entitled to a copy of the information registered on the PPSR

The secured party – the finance company, the lender, or bank must send you a verification statement when the security interest is registered, except if you have waived your right in writing. A verification statement is basically a copy of the financing statement, and it tells you what has already been recorded about you on the verification statement. It also includes a Debtor PIN. The Debtor PIN is an essential requirement in case you need to make one or two corrections of those details by the secured party, and this is known as a Change Demand. You, the debtor or any other interested person may also demand the debtor PIN from the secured party.

It is your right to request for correction of any inaccurate details.

You have the right to request for correction of incorrect details if you discover that part of the security interest's details recorded about you on the PPSR are wrong.

In some circumstances, you can take the bold step of lodging a modification demand to formally ask for correction of the security details registered.

When selling a property that is registered for a security interest

Don’t sell a personal property you owe money on without seeking permission from the company or person you owe the money. The secured parties may repossess the property from the person you sold it to if they have registered their security interest on the Personal Property Security Registration (PPSR). In such a situation, the person whom you sold the property to is likely to demand repayment of the actual purchase price from you.

Ensure that the register is updated once you have repaid the debt

You should ensure that the secured party discharges the financing statement once you have repaid your loan or hire purchase. This guarantees that the financing statement will not be available for general PPRS search or will no longer appear on the live register – PPSR.

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