TERMS & CONDITIONS

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Lease Contract Terms and Conditions

‘YOUR LEASE: TERMS AND CONDITIONS’

KLF PTY LTD (Trading as Rent to Own Home Appliances)

ABN 58 105 210 008

Operation and Purpose
1. This rental agreement is a consumer lease for consumer purposes and the provisions of the National Credit Code (‘the Code’) apply to this agreement. You are an individual (the Renter or Lessee) and the Goods are rented from the Owner (or Lessor) for personal, domestic or household purposes.

Definitions
2. ‘Code’ means the National Credit Code and its Regulations.
‘Delivery date’ means the date on which the Goods are delivered to the Renter.
‘Disclosure date’ means the date of this agreement.
‘Goods’ means the goods described in the Schedule, including any parts or accessories attached to the Goods.
‘On demand’ means within thirty (30) days of notification by the Owner.
‘Owner’ means the person(s) so described in this agreement.
‘Payment date’ means each date you are required to make a rental payment.
‘Premises’ means the premises described in this agreement.
‘Recoverable amounts’ mean, the total, at the date of termination of:
If the Goods are Returned to us:
the rental payments and any other monies which have fallen due for payment but have not been paid; and
any enforcement expenses, including any costs incurred by us in enforcing this Agreement or taking possession of the Goods (including legal costs and charges), storage cost and liquidated damages for our loss arising from your default and or early termination; or

If the Goods are not returned to us or possession is not otherwise obtained by us:
(a) the rental payments and any other monies which have fallen due for payment but have not been paid;
(b) the Termination Value of the Goods plus valuation costs (if any); and
any enforcement expenses, including any costs incurred by us in enforcing this Agreement or taking possession of the Goods (including legal costs and charges), storage cost and liquidated damages for our loss arising from your default and or early termination.
‘Renter’ means the person(s) so described in this agreement.
‘Rental payment’ means each amount described as a rental payment in the Schedule.
‘Rental period’ means the term of the rental described in the Schedule or the actual Rental Period, whichever is the lesser.
‘Residual value’ means the amount specified as the residual value in the Schedule.
‘Termination Date’ means the last day of this rental agreement.
‘Termination Value’ for any of the Goods on a day, means the present value on that day of the residual value for those Goods.
‘Total Rental Amount’ means the total amount of rent payable which is specified in this agreement.

Ownership and interest
3.1 You have a right to use the goods but the goods remain our property. You must not:
part with possession of the Goods; or
give another person an interest in the Goods.
3.2 The Owner retains ownership of the Goods and may cede and/or assign its interests in this agreement in respect of the Goods to another party or parties, or elect to negotiate a sale of the goods with you at the end of the lease.

Location
4. (a) You undertake to keep the Goods at the Premises described in this agreement and to obtain our written consent to remove the Goods from the Premises at least seven (7) days before doing so;
(b) You must tell us within seven (7) days of our written request where the Goods are used or ordinarily kept and, if the Goods are not in your possession, you must give us all information that you have that might assist us to trace the Goods.
(c) You must keep the Goods under your personal control at all times for the duration of this agreement.

Maintenance
5. (a) You must take proper care of the Goods until termination of this agreement.
(b) You agree to follow the manufacturer’s instructions and recommendations in respect of the Goods, and to comply with all laws and regulations relating to the Goods, the use or possession of them or in relation to the Premises where they are kept.
(c) We undertake to maintain and service the Goods and to replace any parts of the Goods that are defective, excluding the replacement of batteries or any damage caused to the Goods by your negligent or reckless actions or omissions. This undertaking does not apply if you have defaulted in your rental payments, or removed the Goods from the Premises without our written permission to an address other than the address described as the Premises.
(d) You agree to provide the Goods to us (or any person authorised by us) for servicing, repair or inspection at our request and to allow us access to the Premises for this purpose.
(e) If we respond to a call out by you and it is determined that the fault is due to operator error, then we will charge a call out fee as described in the Schedule.

Prohibited dealings
6. In addition to clauses 3-5 above, you agree not to:
(a) alter the Goods, make any addition to them or install anything in or on them without our written consent, save for the lawful installation of computer hardware or software;
(b) use the Goods for any purpose which is unlawful or for which they are not fit, or which in our opinion might endanger the safety or condition of the Goods or prejudice our interest in them;
(c) install the Goods in any manner that would cause them to become a fixture to land;
(d) create any lien or other encumbrance over the Goods;
(e) alter or cover up any insignia, number or mark on the Goods or any identifying plate or mark we or the manufacturer may attach to them; or
(f) assign, encumber or otherwise deal with the Goods or the Renter’s rights under this agreement without our written consent.
Insurance and Risk
7. (a) You assume all risk and liability in respect of the Goods, including their use and storage.
(b) You must insure the Goods at all times against loss or damage caused by fire, flood, theft or accident.
(c) You undertake to include the Goods on your Household Contents Insurance Policy, and indemnify the Owner against any loss if you fail to do so.
Access and right of entry
8. (a) We will not enter any part of Premises used for residential purpose for the purposes of taking possession of the Goods unless we have informed the occupier in writing of their rights under the Code and the occupier has given us consent in writing, in accordance with the Code or unless a Court has authorised the entry.
(b) Subject to clauses 8(a) and 9, on being given reasonable notice, you must allow us or our representative at any time by mutual arrangement to enter the place where the Goods are to:
(a) inspect their condition; or
(b) check whether the terms of this agreement are being complied with; or
(c) exercise any of our rights under this agreement.

Taking possession
9. We will give you at least thirty (30) days written notice of our intention to exercise a right under this agreement to take possession of the Goods. However, we need not give this notice if:
(a) this lease has ended; or
(b) we believe on reasonable grounds that you have disposed of the Goods, or intend to dispose of the Goods, contrary to the terms of this lease; or
(c) we have made reasonable attempts to locate you without success; or
(d) you are insolvent; or
(e) a Court authorises us to do so.

Loss
10. You must tell us if any of the Goods are stolen, lost or destroyed. After that, in addition to any rental payment or other amounts due, you must pay the Owner on the next Payment Date the Termination Value as at that date and this agreement will then be terminated.

Payment
11. (a) You must pay us the Rental Payments on the Payment Dates and all stamp and other duties, fees, taxes and charges payable in connection with this agreement as stipulated in the Schedule.
(b) You must pay any other amounts due under this agreement on demand by the Owner.
(c) All Rental Payments shall be made at the Owner’s place of business or by any means agreed to by the Owner.
(d) If the contract is in arrears and the Owner or its authorised representative collects or attempts to collect Rental Payments from the Renter at the Premises, the Renter shall pay all arrears payments, default and legal costs and charges due under the agreement.
(e) Should any additional amounts of taxes, duties and fees in respect of the Goods become payable, which have not been included in these Rental Payments, the Renter agrees to pay such amounts on demand.

(f) No set-off or deductions may be made by the Renter in respect of any payments due to the
Owner.
Information
12. You must:
(a) provide us with any information we ask for about your financial position or the Goods or insurances relating to them, within five (5) days of such request;
(b) notify us immediately of any seizure or attempted seizure of the Goods;
(c) immediately report to the police if the Goods are stolen or lost and provide us with a copy of the police report.

Return of Goods
13. On the last day of the Rental Period, you must return the Goods to us in good working order, and in good repair (or ‘Subject to the provisions of Clause 16, you must return the Goods to us on the last day of the Rental Period in good working order, and in good repair…’)
to a place we nominate, and pay us the Termination Value of the Goods (in the event of loss of or damage to the Goods), together with any outstanding rental payments, fees and charges due to the Owner in terms of this agreement.

Default
14.1 If you:
(a) do not pay all money due on time as required by this agreement;
(b) part with possession of the Goods;
(c) give another person an interest in the Goods;
(e) do not give us the information we request in accordance with clauses 10 or 12;
(f) do not take proper care of the Goods;
(g) do not insure the Goods in accordance with clause 7 or are in breach of any other
obligations under this agreement;
(i) if the Goods become the subject matter of any court proceeding against you or are subject to an order by any government or semi government body arising out of your act or omission; or
(j) if the Goods are lost, stolen or destroyed or we are of the opinion that they are so damaged as to make their repair impracticable.

What happens when a default notice is issued?

14.2 When we issue a default notice, we will inform you of the nature of the default and require you to remedy the default within 30 days of the notice of the default. If you fail to remedy the default, we may terminate the agreement as set out in clause 14.3 and commence enforcement proceedings.

14.3 If we give you a notice of termination, you must immediately:
(a) return the Goods to us in good working order, and in good repair (fair wear anf tear excepted); and
(b) pay us the Recoverable Amount.

14.4 No indulgence or omission to act by the Owner shall prejudice its rights against the Renter, which the Owner can exercise at any time under this agreement.

Termination by Owner

14.5 If we issue a default notice and you fail to remedy the default as set out in the default notice, we may terminate the agreement immediately and take enforcement action against you. Termination of this Agreement following your default does not limit or change your liability under this Agreement for the default and the Recoverable Amount.

Termination by Renter
You may;

(a) Terminate this agreement at any time before the Goods are delivered to you. In this instance, we may charge you an administration fee; and
(b) at any time before the end of the Rental Period terminate this agreement by paying the Owner any outstanding Rental Payments and returning the Goods to the Owner in their original condition (fair wear and tear excepted) during ordinary business hours (or at such other time as may be agreed with the Owner) at a place specified by the Owner.
15.2 If you terminate this agreement pursuant to clause 15(b) and the Goods are lost or damaged, you must pay the Owner the Termination value for the Goods calculated as at termination date, together with all amounts due to the Owner under this agreement.
Termination on expiry of Rental Period or death of the lessee
16. Upon expiry of the Rental Period, you:
16.1 (a) must immediately return the Goods to us in good working order and in good repair (reasonable wear and tear excepted) during ordinary business hours to the place we nominate;
(b) pay us the Termination Value for the Goods (in the event of loss of or damage to the Goods), calculated as at that Payment Date; and
(c) pay us all arrears of rental payments, any rental payments due on that day and other payments due up to and on that day; or
(d) apply to us to extend the term of the rental for an agreed period at a mutually agreed rental;
alternatively
16.2 (a) you may, within a reasonable time prior to the expiry of the Rental Period, make an offer to us to purchase the Goods for the Termination Value and we may accept or decline that offer in our absolute discretion, and upon terms acceptable to us. Refer to clause 17.5 for information contain in the end of lease statement.
(b) if you do not make an offer or we do not accept the offer or we cannot agree to the terms of a purchase, you have to immediately return the Goods to us upon the expiry of the Rental Period and do all things set out in clause 16.1 above.

16.3 If you die or cease to have contractual capacity, we will liaise with your executor/executrix or with your guardian or legal representative in relation to this lease. We will offer them the same options that you have under this lease agreement and will reach an agreement with these representatives with regards to the continuation or termination of this lease agreement.

 

Statement of Account

17.1 If the term of this agreement is longer than 12 months then prior to the expiry of the first anniversary and every 12 months thereafter the Owner will give you a statement of account. If this agreement is not longer than 12 months, the Owner will issue you a statement of account before the expiry of the agreement.

17.2 The Owner is not obligated to issue a statement of account if you are in default under this agreement and the Owner commenced enforcement proceeding or if you passed away or you are insolvent unless the trustee in bankruptcy or the personal representative of your estate asks for a statement of account.

17.3 You may, at any time, request the Owner to issue you with a statement of account. You may request the statement verbally or in writing. The statement of account issued by the Owner under this request will include information about your account, any credit and or debits made to the account during the statement period, the amount outstanding and any corrections to the account.

17.4 If you asked for the statement verbally, the information can be provided to you verbally and if you requested the information in writing, the Owner will provide a written statement. In any event, the information will be provided within 14 days of the request.

17.5 No later than 90 days before the expiry date of the agreement, the Owner will issue you an end of lease statement. The end of lease statement will provide information in relation to your obligations at the end of the lease and any action you need or may take with respect to the leased Goods. Information includes, the end date of the lease agreement, the date Goods must be returned to the Owner, the liability if Goods are not returned and a statement whether the Owner will be willing to negotiate with you the sale of the Goods and if so, provide an estimated sale price for the Goods (Termination Value) and contact details for the person through whom the sale of the Goods may be negotiated.
17.6 The Owner does not have to issue an end of lease statement of account if you are in default of this agreement and the Owner commenced enforcement proceedings, you passed away or are insolvent and the trustee in bankruptcy or the personal representative of your estate did not ask for a statement or the Owner had written off the debt.
17.7 You may request a statement of amounts payable on termination to be issued. The Owner will provide such a statement within 7 days of the request. The statement will contain information about the amounts required to terminate this agreement, your liability if the agreement is terminated and any information required by law in relation to the Goods and whether the Owner is willing to negotiate the sale of the Goods to you.
17.8 In the last 12 months of the Rental Period, the Owner will issue you with a combined statement of account and an end of lease statement.

Acknowledgments
18. You acknowledge that:
Before signing this agreement you received a copy of it, including the Information Statement;
you have not relied on our skill or judgment in deciding to enter into this agreement;
you have examined the Goods and agree that they are in a satisfactory condition and they are suitable for your purposes;
you have not relied on any representation, warranty or undertaking made by us about the condition, description or quality of the Goods, their suitability or fitness for your purposes in your decision to rent the Goods;
Our liability for breach of any implied term, condition or warranty which cannot be excluded by law, is limited to the supply of goods of equivalent value and description or the repair of the Goods, as determined by the Owner;
to the full extent permitted by law, all express and implied terms, conditions and warranties other than the ones set out in this agreement are excluded; and
to the full extent permitted by law, we are not liable for any injury to any person or loss or damage to property arising from the possession, operation or use of the Goods.

The lessee acknowledges that the total cost of the lease repayments payable under this Agreement are significantly higher when compared to the cost of buying the same goods outright from a retailer.

Delivery of the Goods
19. (a) The Owner will deliver (and where applicable, install) the Goods to the Renter.
(b) By taking delivery the Renter acknowledges that the Goods are in good condition as described in the agreement.

Hardship 
20. If you experience difficulties or you are unable to meet your obligations under this agreement, you may give notice to the Owner with details of the difficulties or inability. The notice can be given verbally or in writing (Hardship Notice).
20.1 You may request the Owner;
(i) to extend the term of your lease and reduce the Rental Payments; or
(ii) to extend the term of your lease and delay the Rental Payments for a set time; or
(iii) to delay Rental Payments for a set time.
20.2 The Owner may require you to provide additional information in relation to the Hardship Notice within 21 days of the Owner’s request.  The Owner requires this information to better assess your request for changes to the lease due to hardship.  You must provide this additional information.
20.3 The Owner will consider the information you provide and will inform you whether the Owner is agreeable to amend this agreement as you requested.
20.4 The Owner does not have to comply with your request under the Hardship Notice or agree to amend this lease agreement.
20.5 If the Owner agrees to vary this agreement following the Hardship Notice then the Owner will, no later than 30 days after the agreement to vary is made, give you a notice setting out the particulars of the change.
20.6 If the Owner does not agree to change the agreement following the Hardship Notice, the Owner will inform you of the reasons for the refusal.  You may apply to the Owner’s external dispute resolution details of which are set out in the Owner’s Credit Guide.  You may also apply to the court to change the terms of the agreement.

Notices
21. The Owner may give the Renter any notice or demand by delivering such notice to the Premises, by delivering it to the Renter in person or by posting it to any address provided by the Renter or where the Renter is residing at that time. The Owner may also give the Renter notice by email, SMS or facsimile if the Renter has provided such information to the Owner.

Interpretation
23. Unless the context indicates otherwise, in this agreement:
(a) headings are for convenience only and do not affect the meaning or interpretation of this agreement;
(b) words denoting the singular include the plural and vice versa and words denoting one gender include the other;
(c) a reference to a party includes its successors and permitted assigns;
(d) all Renters are bound jointly and severally where there are two or more Renters;
(e) any provision which is unenforceable or prohibited by law may be severed from the agreement and do not affect the validity of the remainder of the provisions

Jurisdiction
24. The agreement is governed by the laws of the jurisdiction of the State or Territory of Australia within which the Renter ordinarily resides at the date of this agreement.

Internal Dispute Resolution Service
25. In the event of dispute or dissatisfaction with our action(s), you agree to undertake the following steps:
Step 1
Contact us and explain your concern(s). We can usually resolve the matter(s) amicably, without delay.
Step 2
If you are still dissatisfied with our response, you must contact our Internal Dispute Resolution (IDR) Manager, Chris Fisher by telephone 07 3807 9366 as soon as possible. We may ask that you put your complaint in writing to us so that we may investigate it further. This may be done by email or post. Post to 5/53 York St Beenleigh Qld 4207 or email [email protected].
Step 3
Should you still be dissatisfied after using both of the above steps, you may then contact our ASIC-approved External Dispute Resolution (EDR) provider at no cost by writing to Australian Financial Complaints Authority and can be contacted at [email protected], Tel. 1800 931 678 or GPO Box 3, Melbourne VIC 3001.
Please note that you must have gone through our IDR process first before doing so. If you fail to do so, the matter will be referred back to us to resolve in the first instance and we will (as far as we are lawfully able to) seek to recover any costs we incur as a result of your failure to adhere to this undertaking.