Where goods are left for repair or other treatment in the course of a business, problems often arise when the goods are not paid for, or the customer pays but does not collect them. Where goods have not been collected for a period to time, a trader may follow the procedures set down by the Uncollected Goods Act 1995 to dispose of the goods and to cover any costs involved in repairing and/or storing the goods.
How a trader can dispose of uncollected goods depends on their value.
Value of goods
Manner of disposal
|Less than $100||
The trader must give a verbal or written notice to the customer that they intend to dispose of the goods.
|Between $100 and $500||
The trader/store must give written notice to the consumer and each other person claiming an interest in the goods, that they intend to dispose of the goods.
|Between $500 and $5000||
The trader can only dispose of the goods by public auction and only if:
|Over $5000||Goods worth more than $5000 can only be disposed of with a court order.|
Any notice regarding uncollected goods must include:
These charges should be agreed to by the trader and the customer in the warranty or repair agreement, but should not include any profit. In other words, the charges should only reflect the actual cost to the trader for storing, maintaining or insuring the goods.
Any money made above those costs should go to the Chief Commissioner of State Revenue. For more details, contact the Office of State Revenue on (02) 9689 6200 or 1300 366 016 (outside Sydney metropolitan area).
Note: There is specific legislation relating to the disposal of goods held by a pawnbroker (Pawnbrokers and Second-Hand Dealers Act 1996, Part4, Section30), goods left by a tenant (Residential Tenancies Act 1987, Division 5) or resident of a retirement village (Retirement Villages Act 1999,Division 7, section 146-148)
A trader can’t dispose of an uncollected motor vehicle unless the Commissioner of Police has given the trader a certificate stating that the vehicle is not recorded as stolen.
After this certificate has been issued, the above guidelines should be adhered to.
Local Courts administer the laws relating to uncollected goods and can be contacted for further information in the event of a dispute.