Loan Terms and Conditions
‘RENT TO OWN CONTRACT: TERMS AND CONDITIONS’
KLF PTY LTD (Trading as Rent to Own Home Appliances)
ABN 58 105 210 008
This document, ‘Your Loan: Terms and Conditions’ is incorporated into your Credit Contract. This document does not contain all the information required by law to be given to you. You must read this document together with a document titled Consumer Credit Contract (collectively hereafter referred to as Credit Contract).
You agree to comply with all the provisions of your Credit Contract, to make all repayments on due date and without deduction and to maintain the Goods in a state of good order and repair throughout the loan period. You agree not to dispose of, mortgage or encumber the goods in any way and to inform the Lender immediately should the Goods be moved or any damage occurs to the Goods.
You further agree to maintain and service an insurance policy in respect of the Goods for the loan period, to cover the Goods in the event of loss or damage. If you choose to extend the manufacturer’s Warranty over the Goods, you are liable to pay any installments and costs associated with such an extension.
You must make all payments on the due date. Normally repayments are due monthly in arrears on the same day of each month as the Drawdown Date, however, the financial table in your Credit Contract will specify the frequency of repayments.
Repayments are to be made by direct debit from your bank account or such other way as the Lender agrees or specifies. You must sign any forms required by the Lender to effect repayments. The amount of each repayment will include any applicable financial institution’s duty, direct debit fees, or similar taxes or charges.
If any repayment is due to be made on a day, which is not a business day, the repayment must be made on the next business day.
Business day is a day that is not a Saturday or Sunday, or a public holiday, special holiday or bank holiday in the place in which any relevant act is to be or may be done.
If any direct debit or cheque used for repayment is dishonored, the repayment will be treated as not having been made, and interest will continue to accrue on the unpaid daily balance until actual payment is received by the Lender.
Where repayments or charges are due on the 29th, 30th or 31st of a month that does not contain such a date, they must be paid on the last day of that month.
Until the term has expired and all amounts owing to the Lender have been paid, you must maintain an account with direct debit authorization to the Lender. Payments will be credited to you only when actually received by the Lender.
You must make payments without deducting or setting off any money you think the Lender owes you for any reason. You must pay to the Lender on demand all government charges and duties on receipts relating to your loan. The Lender may debit your account with these items as incurred.
Interest charges and credit fees
The annual percentage rate of interest applicable to this loan is 46%.
If the Lender changes a credit fee or charge or introduces a new credit fee or charge, you will be notified by written notice.
You give and the Lender takes a mortgage of the Goods.
Subject to any legislative provisions the Lender may take possession of the Goods, or may take possession of, and sell, the Goods if—
(a) the Lender was induced by fraud by you to enter into the Credit Contract; or
(b) you have, contrary to a term of the Credit Contract, attempted to assign or dispose of the Goods; or
(c) you have, contrary to a term of the Credit Contract —
(i) failed to keep the Goods in good order and repair; or
(ii) failed to keep the Goods insured or registered; or
(d) you have made default in the payment of any instalment or other monetary sum due under the Credit Contract; or
(e) you have made default in any other obligation under the Credit Contract which is likely to affect directly the value of the Lender’s security; or
(f) you have returned the goods to the Lender, or have given notice in writing to the Lender, that you cannot continue to observe the obligations imposed by the Credit Contract.
Statements of account
Statements of account will be forwarded to you within 7 days of your request or as required by law.
The Lender and other persons may pay or receive other commissions, fees or benefits in connection with this loan.
Illness or unemployment
If your loan has been satisfactorily conducted and you become ill or unemployed so that you are unable to make your repayments, you may apply to the Lender for a suspension or reduction of your repayments.
Any suspension or reduction period is entirely subject to approval by the Lender. During any approved suspension or reduction period, interest continues to accrue (and so the total debt may increase).
When there is default
If any one or more of the following occur the Lender may decide default has occurred. You must ensure default does not occur.
(a) There is default of any term or condition of this Credit Contract.
(b) There is default under any mortgage or other security given for this Credit Contract.
(c) You fail to pay any person (including the Lender and/or other banks etc) any money by the due date.
(d) Any representation made by you to the Lender or its agents proves to be untrue or misleading.
(e) You become bankrupt or are imprisoned.
(f) You breach any material undertaking given at any time to the Lender.
Lender’s rights on default
At any time after default occurs, the Lender can take any of the following actions after giving any notice required by law and, if required by law, the period specified in the notice has passed and the default has not been rectified.
(a) Demand and require immediate payment of any money due under this Credit Contract.
(b) Call up the loan and require payment of the entire balance owing under this Credit Contract.
(c) Exercise any right, power, or privilege conferred by any law, this Credit Contract, or any security.
(d) Demand and require you to surrender possession of the goods set out in Annexure A of the Credit Contract and if the goods are surrendered then the Lender may sell the goods in its discretion.
(e) If the goods set out in Annexure A of the Credit Contract have not been surrendered to the Lender, the Lender may seek orders from a court of competent jurisdiction for possession of the goods and subsequently sell the goods.
The Lender can take action even if the Lender does not do so promptly after the default occurs.
The Lender can exercise these rights with or without taking possession of any mortgaged property. If the Lender holds more than one security, it can enforce any one of the securities or all of them at the same time.
If you breach the terms of this Credit Contract or of any mortgage required by the Credit Contract, you will be required to pay expenses which are reasonably incurred by the Lender or the Lender in enforcing or preserving its rights under this Credit Contract or the security.
These expenses include the Lender’s expenses incurred in preserving or maintaining property subject to the security, collection expenses and expenses resulting from dishonor of a cheque or payment. These expenses may be debited to your loan at any time after they are incurred.
You must provide financial statements
You must provide to the Lender within 14 days of the Lender’s request any information the Lender requires relating to your business, assets, and financial affairs. For example, the Lender may require a copy of an individual’s taxation return or an assets and liability statement. In relation to a company, the Lender might require a balance sheet, a profit and loss account, or both. The Lender may require this information to be certified or audited.
How the Lender can deal with this credit contract
The Lender may assign or otherwise deal with its rights under this Credit Contract in any way it wishes, subject to the legislation. You must sign anything and do anything the Lender reasonably requires to enable any dealing with this Credit Contract. Of course, any dealing with the Lender’s rights does not change your obligations under this Credit Contract in any way.
Disclosure of information by the Lender
In exercising its powers to assign or otherwise deal with its rights under this Credit Contract, subject to any relevant legislation the Lender may disclose to anybody any information about you or this Credit Contract.
We may sell, transfer or assign this Credit Contract without notice to you, subject to the legislation.
To the extent that this Credit Contract is regulated under consumer legislation (eg the National Credit Code), any provisions which do not comply with that legislation have no effect, and to the extent necessary, this Credit Contract is to be read so it does not impose obligations prohibited by that legislation.
If you are a trustee
If you are at any time trustee of any trust, you are liable under this Credit Contract in your own right and as trustee of the trust. You warrant and represent that you have the right to be fully indemnified from the assets of the trust. Accordingly, the Lender can recover against the trust assets as well as you. Default occurs if there is a change of trustee, a termination of the trust, or any change to the terms of the trust without the Lender’s consent.
How notices may be given
The Lender may give a notice to you by personal delivery, prepaid ordinary post, or facsimile sent to your address shown on this loan agreement, sent to your registered office (if you are a company), or sent to your last address known to the Lender. The Lender may also give a notice by email or in any other way authorized by law.
The notice may be signed by any employee, solicitor, or agent on behalf of the Lender.
This agreement is regulated by the laws of the State of Queensland.
If there are two or more of you, each of you is individually liable, and all of you are jointly liable. References to a person include companies and trusts and any other kind of body. Singular words include plural words and vice versa.