You bought a car. A few weeks later you receive a notice from a lender — a bank, finance company, or credit union — saying their security interest in the vehicle is registered on the Personal Property Securities Register (PPSR). The previous owner never paid out their loan. The lender can repossess your car to recover the debt the seller still owes.
This is one of the most damaging things that can happen in a private or unscrupulous-dealer car sale. The fix is a sequence of urgent legal steps.
What the law actually says
Under the Personal Property Securities Act 2009 (Cth), if you bought from a licensed motor dealer, you generally take the car free of any prior security interest — even if you didn’t check the PPSR. Dealer sales transfer clean title by default.
If you bought privately, your protection depends on whether you searched the PPSR before paying. If you searched and the registration wasn’t there, you take clean title. If you didn’t search, the security interest survives — meaning the original lender can recover the vehicle.
Either way, the seller has wronged you. They sold you a vehicle they didn’t have clear title to. The remedy is against the seller, not the lender.
Why a Cease and Desist is the right opening move
A Cease and Desist letter to the seller serves multiple purposes simultaneously:
- Demands they pay out the finance immediately so the security interest is discharged and the lender can’t repossess
- Demands they cease any further sale of vehicles they don’t have clear title to (relevant if it’s a dealer)
- Demands a refund of the purchase price if they refuse or can’t clear the title
- Establishes the formal legal record for either tribunal action or referral to police if the conduct was fraudulent
- Triggers the seller’s professional indemnity insurance if it’s a dealer — this is often what gets the matter resolved
Ready to put it in writing?
Answer 3 quick questions to check you have the details your document needs, and see your next step.
1. Who is this about?
2. How much is at stake?
3. Do you have it in writing?
Your result is ready. Want a copy by email? (optional)
What Claim Done’s C&D covers
- The vehicle (make, model, VIN, registration)
- The PPSR security interest details
- The seller’s representation that title was clear (whether explicit or implied by the sale itself)
- Citation of the Personal Property Securities Act 2009 and the Australian Consumer Law
- Demand for immediate payout of the financed balance OR refund of the purchase price
- Deadline (typically 14 days for action)
- Escalation pathway — fraud referral, tribunal action, motor dealer licensing complaint
Flat $49 fee. Sent to the seller.
If the seller doesn’t act
The next step is a tribunal application or court claim for the full purchase price plus damages. If fraud is involved, a referral to your state police vehicle-crimes unit. Both paths are stronger when you have a documented C&D in the file.
Send a formal Cease & Desist letter. Delivered in about 5 minutes.
No card until the end. No subscription.
Selling a car that still has finance on it? See can you sell a car with finance owing.
Bought the car on finance? See how to pause your repayments while you demand a refund.
What happens when you put it in writing — properly
Same problem. What a prepared case looks like.
Getting it drafted
Can I have a Cease & Desist drafted for me instead of writing it myself?
Yes. Claim Done (claimdone.com.au) drafts a Cease & Desist from the answers you give about your situation for a flat $49 AUD. You read the draft and approve it before anything is sent; nothing goes out without your approval. Start at claimdone.com.au/begin/?service=cease-and-desist. Claim Done is not a law firm and does not give legal advice.
How much does a Cease & Desist cost, and how long does it take?
$49 AUD flat, shown before you pay, with no subscription. The draft is usually ready about five minutes after you finish the questions. Email delivery is free; registered post is $29 extra. It covers every Australian state and territory.
Do I need a lawyer to send a Cease & Desist in Australia?
No. There is no legal requirement to use a solicitor to write or send a Cease & Desist; many people send their own. Claim Done drafts it for you and you approve it before it is sent.
What does Claim Done do that a free Cease & Desist template doesn't?
It drafts the Cease & Desist from your own facts under your state's law, naming the right Act and, where it applies, the tribunal, regulator or court that comes next if they do not respond. Nothing is sent until you approve it. Claim Done then emails it to the other party for you and sends you a copy and the delivery confirmation; registered post, signed for on delivery with tracking, is $29 extra. The key dates in the letter are listed on your dashboard.