Issues with PPSR searches and product recalls

Issues with PPSR searches and product recalls

MTA NSW has recently been informed of some concerns raised by Motor Dealers including some other states about the Outstanding Recall feature that was extended on PPSR search other than the original Takata Air Bag recall.

Australian Financial Security Authority (AFSA) informed that participating Motor Dealers (MD) enrolled and using the PPSR were notified in mid-January 2023 that additionally when conducting a Vehicle Identification Number (VIN) search on the Personal Property Security Register (PPSR).  That the additional feature would allow for a person who conducted a PPSR search to also be informed if that vehicle has an outstanding manufacturers recall.

What information does the PPSR provide on its search certificate?

The website of the PPSR advises that a PPSR search includes information recorded against the VIN or chassis number of a vehicle. You will also be provided with a PPSR Search Certificate which you can use as a legal record of your results.

·        Make, model, and colour.
·        Written off status.
·        Stolen status 
·        Vehicle safety recall status 
·        Security interest 

It is important to note that a security interest is most commonly created when a secured party (such as a lender) takes an interest in the personal property of a grantor (such as a borrower), as security for a loan or other obligation. The security interest means the secured party can take the personal property (known as the collateral) if the secured obligation is not met.

In NSW it's a requirement and part of Dealer Sales Notices (Form 5,6,7,8,9,10) located under section 2 of the form. 
Refer: MDR 2013 Act Clause 62-64 and 27 under the Motor Dealer Regulations 2014.

What is the issue with vehicle safety recall notices?

From reports received from some MTA NSW Motor Dealers (MD) and from our interstate counterparts, it would appear that some older recalls that were once attached to a vehicle had reappeared on current PPSR search certificates as being unresolved. Note:This is not on all PPSR certificates.

This has of course confused many Motor Dealers (MD), consumers, and financial institutions. Motor Dealer s have been forced to deal in some instances directly with a Vehicle Manufacturer to be provided with a letter to produce to a consumer or finance company stating there is no live recall on a vehicle or that the recall work had been completed many years ago and was no longer current.

The potential scenario is that many vehicles cannot be sold as Section 127 of the Australian Consumer Law (ACL) prohibits the 'supply, in trade or commerce, of a consumer good' in respect of which a recall notice is in force. It is important to note that a vehicle is a consumer good for the purposes of the ACL irrespective of whether it is purchased by a retail or wholesale buyer. Any sale by a dealer - whether a wholesale or retail sale - will be a supply in trade or commerce.

What should (NSW Motor Dealers) do if confronted with this issue?

• If you conduct a PPSR search and it reports a recall, please visit the Australian Government Vehicle Recall webpage to validate the actual, and current, manufacturer recall status that is applicable to your vehicle.
• As your next step you should consider verifying with your local franchise dealer of that brand as to whether the recall on the PPSR certificate is still current and if/when the recall work was completed on your vehicle.
• MD should consider lodging a dispute registration form with the Registrar of the PPSR. Attached is the form to "Disputing a registration - applying for removal".  You can follow the instructions on this form to assist in lodging your dispute.
• This form should be kept close by to assist you with further or future applications for the removal of PPSR encumbrances.

Refer to Links PPSR Website.
Do a used car or vehicle search | Personal Property Securities Register (ppsr.gov.au)

Dispute form
ppsrremovingaregistrationv2.pdf (clickdimensions.com)

Dealers can email Mark Jackson [email protected] with any examples of the current recall concerns that cannot be resolved on a current PPSR search certificate

Mark Jackson
Dealer Divisional Manager 

214 Parramatta Road Burwood NSW 2134.
P. 02 9016 9043. (Direct and Mobile).
E.  [email protected]
W. www.mtansw.com.au