27 March 2018

Thank goodness for red squiggly lines.

Make a mistake on a Word document or an email and those jarring, but helpful red squiggly lines alert you to an embarrassing typo.

If only the PPSR registration process was similarly obliging.

Unfortunately, simple and innocent mistakes during the registration process are far too common – and usually made unknowingly.

For example, businesses have had their claims invalidated because an 8 instead of a B was entered as the VIN, or because they didn’t tick the PMSI box when registering on the PPSR.

And the sting? In many cases, companies only realise their mistake when they try to recover their property from an insolvent customer – only to be told their claim is worthless, due to an incorrect and invalid registration. 

At Equifax, we’ve seen it all: the teeny tiny, innocent mistakes to the big and ridiculous whoppers – all of which can put your property and business at risk.

We’ve been helping businesses, big and small, with the PPSA and PPSR since day dot, when the legislation was first introduced.

We know what to look out for, and how to ensure your property is registered correctly. And on time. Every time.

Because, given the complexity of the PPSR, many businesses have found out the hard way that it’s all too easy to make mistakes that can invalidate their security interests.

Here are 5 of the most common mistakes to avoid when registering your property on the PPSR:

1. Grantor Identification

The most common errors when it comes to identifying a grantor are:

  • Identifying a company by ABN rather than ACN
  • Identifying a sole trader by ABN rather than name
  • Identifying a trust by name or trustee – when it has ABN allocated
  • Identifying a trust by ACN of corporate trustee
  • Wrongly identifying other organisations such as clubs or charities.

2. Collateral Class

  • Selection of incorrect collateral class. 

3. Serial Numbered Goods (Motor vehicles, aircraft, watercraft)

  • Consumer goods should be registered by serial number only.
  • Error in the serial number will render the registration invalid.

4. Claiming a security interest is transitional when it is not.

5. Failing to claim a PMSI when the security interest is a PMSI.

If in doubt, always seek expert advice.

EDX, from Equifax, has been advising businesses on the PPSA and PPSR since the legislation was introduced in 2012.

We can conduct audits to review your existing registrations and rectify any mistakes; perform bulk registrations on the PPSR on your behalf; and we can help you implement systems and processes for ongoing and correct registrations.

For further information, simply email us. A PPSR Specialist will contact you to discuss your requirements.

 

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.