Uncollected vehicles are those that a consumer has left with a business but has not returned to claim or collect, has not told the business owner what to do with the vehicle, the business owner cannot contact the vehicle owner, or the vehicle owner has not paid the business within a reasonable time any costs associated with keeping the vehicle (also known as the ‘relevant charge’).
For example, a towing business has picked up a damaged vehicle, but the owner or owner’s agent has not told them what to do with it.
A motor mechanic diagnoses or repairs a car and the owner doesn’t return to pick it up and pay the account (relevant charge).
Goods are not considered ‘uncollected’ if a business refuses to return or deliver them or prevents the person who left them with the business from collecting or reclaiming them.
In the case of Victoria, the disposal rights come from Part 4.2 of the Australian Consumer Law and Fair Trading Act 2012. The following guidance applies to Victoria only. Other states should contact their state MTA for guidance.
Under Victorian legislation, the business must notify the owner that the business intends to dispose of their uncollected goods, then hold the goods for a certain time period before disposing of them. For motor vehicles, this is 30 days after having served the owner and any interested party a ‘Notice of intention to dispose’ in the prescribed form.
The vehicle’s owner can prevent disposal of their goods by paying the relevant charge and collecting their vehicle or, if a dispute exists, applying to a court or the Victorian Civil and Administrative Tribunal to resolve a dispute with the business holding them.
If there is money left over after the business sells the uncollected vehicle and pays the relevant charge and disposal costs (also known as ‘unclaimed money’).
This must be dealt with according to rules set by the Unclaimed Money Act 2008. Further information is available at the State Revenue Office website (search ‘unclaimed money’).
Goods sold correctly under uncollected goods laws give the purchaser ‘clear title’ to them. This means they own the goods provided that, when they bought them, they were not aware of any failure by the business to comply with uncollected goods laws.
The term ‘clear title’ means the previous owner can no longer claim the goods or ask the purchaser to pay any money to keep them.
VACC has a dedicated ‘Disposal of uncollected goods’ kit for Victorian businesses. This is available for purchase from the OurAuto iStore.
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