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Sunday, 20 May 2012

Dear Visitor,

"Life is 10% of what happens to me and 90% of how I react to it."

John Maxwell

Thank you for subscribing to Q Solicitors' e-newsletter.

This month we discuss the the upcoming reforms to Personal Property Security in Australia and how they could affect you and your business.

We also shine the spot light on your internet usage and how to protect yourself against being vulnerable to an 'internet scam'

'Loo Losers' - The Case of the Unsecured Portaloos!

As the Attorney General is expected to make a further announcement this month as to a commencement date for the introduction of the Personal Property Securities (PPS) Act and its supporting Personal Property Securities Register (PPSR), it is a timely opportunity to make an appointment with Q Solicitors to discuss how these reforms will impact on you, your business and the manner in which you conduct business.

The reforms will succeed in establishing one single, national Personal Property Security Register and replace more than 70 pieces of legislation across State and Commonwealth with one single Act. The subsequent ‘Personal Property Security Register’ will serve as an online ‘notice board’ containing the details of registered securities, secured parties and guarantors, all in the one place. Similar reforms have been undertaken successfully in New Zealand, the US and Canada in the past decade, with some interesting ramifications arising for business as a result.

One infamous case relating to the PPS reforms took place in New Zealand at the introduction of their new PPS Act in 2002. Colloquially known as the ‘Portaloo Case’, it highlights the need to ensure that your business and supporting documentation is audited by your Solicitor upon the commencement of the PPS Act in Australia.

NDG (a building company) leased five Portaloos from ‘Portacom’ a Port-a-loo hire company. At about the same time, NDG took out a loan with HSBC, placing all of its property up as security for the loan. Upon the introduction of the PPS Act in 2002, HSBC registered their interest in NDG, however, on the basis that had leased the portaloos and still retained ‘ownership’ ‘Portacom’ did not.  When NDG then went into receivership, the receivers took possession of ALL assets under the security agreement. Even though ‘Portacom’ was in fact the actual legal owner of the Port-a-loos hired by NDG, HSBC had the only registered interest in them – thus, ‘Portacom’ were unsuccessful in having the ‘Port-a-loos’ returned and instead the receivers sold off the Port-a-loos.

Impact on your Business

Depending on your type of business, the impacts of this reform could be quite substantial. One of the major implications of the new legislation affects Retention of Title arrangements. Businesses, for example that provide goods on a consignment basis (i.e. goods are not paid for upfront, but rather payment is made upon the successful transaction to the consumer) will need to seek advice on registering security of items as Terms of Trade stated on an invoice may no longer be sufficient to legally maintain ownership of the goods until payment is received.

While the new single register will be certain to streamline searching Secured Interests and provide a ‘One-Stop-Shop’ to a single Act and single National Register, like anything ‘new’ and particularly given the enormity of this style of reform, you will need to understand the implications that these changes will have on you and/or your business.

It is imperative that you seek legal advice to ensure that you are meeting your obligations and are protected under the new Personal Property & Security legislation.

The 'Digital Doppleganger' - Protecting your online identity

In the age in which we live where online usage is a way of life both for business and pass time, it can be easy to become complacent about the genuine dangers of identity fraud and the ease at which an individual can fall victim to online ‘scams’ involving identity theft/fraud.

While there is no avoiding the fact that digital transactions, digital communication and social networking media are now an everyday part of our lives we must not overlook or become complacent about the very necessary need to remain conscientious about the protection of our identity.

The internet serves as an excellent media to increase productivity & save time by utilising on-line banking, shopping, document lodgement, renewals etc and to remain in touch with friends and family via social networking media sites however the fact remains that responsibility falls at the feet of the individual to protect your own personal identity.

A recent incident involving a close associate to the Q Solicitors firm demonstrated just how easily it can be to fall foul to an ‘on-line scam’. The victim is not a ‘heavy’ internet user and is vigilant about on-line security, yet an overseas hacker succeeded in hacking into a hotmail account, accessing her address book and sending an email to listed contacts. The email read along the lines:

‘I am in London and was mugged last night. I have had everything stolen including my wallet and passport. I desperately need $1,800 wired via Western Union in order to be able to get back home.’

In this instance, all friends and family of the individual involved had the good sense to verify the authenticity of the information before forwarding any money and it was very quickly uncovered as a scam.

The hacker however ‘locked-out’ the rightful owner of the Hotmail account by not only changing the password access, but also changing the ‘reminder’ questions to allow for a new password to be re-set. The Australian Government maintains a website 'SCAMwatch' www.scamwatch.gov.au run by the Australian Competition and Consumer Commission which provides information to consumers and malls businesses about how to recognise, avoid and report scams. SCAMwatch states that 'many scams originate overseas or take place over the internet, making them very difficult to track down and prosecute. If you lose money to a scam, it is unlikely that you will be able to recover your loss. The ACCC publishes this website to help consumer recognise and prevent scams.

Protect yourself

• NEVER send money or give personal details to people you don’t know and trust.

• If you receive a call from your bank or any other organisation, don’t provide your personal details—instead ask for their name and a contact number. Check with the organisation in question before calling back. NEVER rely on a number provided in an email or click on the provided link—instead find the contact number through an internet search or check the back of your ATM card.

• If you receive a request from a friend or family member stranded while on holiday asking you to transfer money to them, contact them by phone or alternative contact to verify the request is genuine before sending any money or providing personal details.

• Regularly check your credit card and/or bank statements to ensure that suspicious transactions are detected.

• Shred all documents containing personal information, such as credit card applications and bank statements.

• Log directly onto websites you are interested in rather than clicking on links provided in an email.

• Always get independent advice if you are unsure whether an offer or request is genuine.

• Change passwords frequently and do not use the same passwords consistently

• Back-up your address book/contact list with a hard copy or to another device – if your email account is compromised, you may not be able to ever access that same account or the information contained within it again.

I'll take my money with me!

Q is for Questions

Do you have any legal questions you would like to ask?  Perhaps you would like us to discuss a particular topic in our next newsletter.  Let us know how we can help by sending an email to: enquiries@qsolicitors.com.au