Victoria: from written notice to the record of disposal

01Eight steps, in order

1. Check that the goods are uncollected

   For Consumer Affairs Victoria, goods a consumer left with a business for a time become uncollected in four situations: the consumer has not come back for them, has left no instructions, cannot be reached, or has not paid the business’s charge for keeping them (the “relevant charge”) within a reasonable time. Goods are not uncollected if the business refuses to give them back or stops the person collecting them.

   The requirements do not apply to goods left behind when a residential tenancy ends, to unsolicited goods sent to a consumer, or to goods in pawn. And where the business and the person who left the goods agreed on what would happen if they were not collected, the law’s procedures do not have to be followed. Without such an agreement, a business can apply to a court or VCAT for a disposal order at any time.

2. Work out the value band

   Low value means goods worth less than $200, or a motor vehicle worth less than $1,000. Medium value means goods worth $200 or more but less than $5,000, and does not cover vehicles. High value means goods worth $5,000 or more, or a vehicle worth $1,000 or more.

3. Write the notice

   A written notice of intention to dispose must include a description of the goods, an address where they can be collected, the relevant charge (with an estimate of further charges if it is likely to grow), a statement that the goods will be disposed of on or after a set date unless they are collected and the charge paid, and, where it applies, a statement that the charge and disposal costs will be kept from the sale proceeds.

4. Give it to the right people

   For low-value goods, the notice goes to the person who left them. For medium-value goods, it also goes to the owner if the business knows that is someone else. For high-value goods and vehicles it goes, in addition, to anyone with an interest registered on the Personal Property Securities Register and anyone else the seller knows has or claims a proprietary or security interest, and to the owner or registered operator if that is not the person who left them.

   Notice can be handed over in person, or delivered or posted to the last known address; for someone with a publicly registered interest, it can go to the address shown on the register.

5. Hold the goods

   The further 28 days runs from the written notice, and the goods can go after it unless they have been collected or delivery instructions given. The longer waits of 60, 90 and 180 days apply only where the person could not be reached despite reasonable written attempts.

   Disposal is off the table once the person who left the goods disputes the relevant charge or other money owed (over the goods’ condition, say, or the quality of work done on them) and a court or VCAT has been asked to fix the charge. Paying the charge and collecting the goods, arranging their delivery, or going to a court or VCAT over a dispute with the business each stops a disposal.

6. Dispose of them in the way the band allows

   Low-value goods may go in any way, including being sold, destroyed or kept by the business. Medium-value goods may not be kept for the business’s own use: only a public auction or private sale, with reasonable care to get the best price reasonably obtainable at the time.

   High-value goods follow the same two routes, with more conditions. An auction is advertised at least seven days ahead, or held over at least seven days, as an online auction can be. A private sale needs written notice to everyone required, a reasonable belief that private sale is the only way to the best price, and reasonable care to get it. Before disposing of a high-value vehicle, the seller obtains a written search result from the Personal Property Securities Register, quoting its chassis number or VIN.

7. Account for the money

   Unless a court decides otherwise, the relevant charge is the total owed for work done on the goods, or for transporting or storing them, and it must be reasonable where nothing was agreed. The business can take it from the sale proceeds and sue the person who left the goods for any shortfall. Anything left after the charge and disposal costs is unclaimed money, handled under the Unclaimed Money Act 2008. Either side can ask a court or VCAT to decide what the charge should be.

8. Make and keep the record

   A business that disposes of uncollected goods or a vehicle without a court order prepares a record within seven days. It includes a description of the goods, the date and method of the notice, the name and address of each person notified, the date of disposal and its method, and details of any sale. The record is kept for six years from the date of disposal, and penalties may apply if these requirements are not followed.

02The other route: a disposal order

An application to a court or VCAT for a disposal order includes a full statement of the reasons, the name of the person who left the goods, a description of them, the address where they can be collected, and the relevant charge with any estimate of further charges. For a vehicle worth less than $1,000 it also includes a VicRoads certificate showing the registered operator or owner.

A copy of the application goes to the person who left the goods and the owner, where reasonable efforts can find them, to anyone with an interest registered on the Personal Property Securities Register, and to anyone else known to have or claim a proprietary or security interest.

Whoever buys goods sold under these laws has clear title to them. Consumer Affairs Victoria sets out what that means:

“If you buy goods sold under uncollected goods laws, you have ‘clear title’ to them. This means you own the goods - provided that when you bought them, you were not aware of any:

• failure by the seller to comply with uncollected goods laws
• problem with the original owner’s title to the goods.”

Consumer Affairs Victoria, uncollected goods explained