South Australian Consolidated Acts

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FAIR TRADING ACT 1987 - SECT 27

27—Prohibition of certain actions

        (1)         Where a contract to which this Part applies has been rescinded, or is capable of being rescinded, under this Division, a person must not, for the purpose of recovering an amount alleged to be payable by the consumer under the contract or a related contract or instrument

            (a)         bring, or assert an intention to bring, legal proceedings against the consumer; or

            (b)         place the name of the consumer, or cause the name of the consumer to be placed, on any list of defaulters or debtors, or assert an intention of placing the name of the consumer, or causing the name of the consumer to be placed, on any such list; or

            (c)         take any other action against the consumer.

Maximum penalty: $10 000.

        (2)         Subsection (1)(a) does not prohibit—

            (a)         the bringing of, or the asserting of an intention to bring, legal proceedings to determine whether or not a contract to which this Part applies has been, or is capable of being, rescinded under this Division; or

            (b)         the continuation of such proceedings (for the purpose of recovering an amount alleged to be payable by the consumer under the contract or a related contract or instrument) where it is determined that the contract has not been, or is not capable of being, so rescinded.

        (3)         It is a defence to a charge for an offence against subsection (1) to prove that, at the time of the alleged offence, the defendant did not know, and could not reasonably be expected to have known, that the contract had been rescinded or was capable of being rescinded.

        (4)         Where a person is convicted of an offence against subsection (1)(b), the court may order the person responsible for keeping any list on which the name of the consumer has been wrongfully placed to remove the name from that list.

        (5)         A person who fails to comply with an order under subsection (4) is guilty of an offence.

Maximum penalty: $10 000.



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