Check whether enforcement of a credit contract can start
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the contract, the default notice and the ledger the lawyer marks, tick whether the debtor is in default, whether a default notice complying with section 88 was given to the debtor and any guarantor, whether the notice allowed at least 30 days from its date, and whether the default was still unremedied at the end of that period. List any section 88(5) fact the lawyer has marked. Do not decide that enforcement may begin.
- What the lawyer must review
- The lawyer decides whether section 88 is satisfied or whether an exception in section 88(5) or the non-remedial rule in section 88(6) applies, and whether enforcement proceedings may begin.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the contract, the default notice and the ledger the lawyer marks, tick whether the debtor is in default, whether a default notice complying with section 88 was given to the debtor and any guarantor, whether the notice allowed at least 30 days from its date, and whether the default was still unremedied at the end of that period. List any section 88(5) fact the lawyer has marked. Do not decide that enforcement may begin. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Require a prominent heading stating that the document is a default notice, and the contents section 88(3) lists, including the default, the remedial action, the period, the date after which enforcement may begin, and the statements about the debtor's liability, hardship, postponement, court applications, AFCA, a repeat default, and credit reporting.
- If the default is the first direct-debit default, or the first payment default on a low cost credit contract, check section 87 as well. That notice is due within 14 days and does not replace section 88.
- Apply the reverse-mortgage telephone or in-person confirmation only where section 88(1)(d) or (2)(d) applies.
- Do not treat a section 88(5) belief as made out unless the lawyer has recorded the grounds.
Sources
- National Credit Code (Schedule 1 to the National Consumer Credit Protection Act 2009), ss 87 and 88 · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.