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http://www.abc.net.au/news/2011-11-1...t§ion=news
A rural financial counsellor says there has been an increase in farm machinery being illegally repossessed in the Orange district.
Andrew Foy-Brown from the Orange Rural Financial Counselling Service says banks and finance companies are required by law to offer farm debt mediation before taking equipment such as headers and tractors.
He says he is helping several grain producers who have had machinery such as headers, tractors and combine harvesters illegally confiscated.
Mr Foy-Brown says the laws were put in place to stop lenders taking advantage of farmers who are struggling to make ends meet.
"They're concerned firstly that they're in arrears but then they're concerned that their equipment's going to be repossessed or in a couple of cases the collection agent has been on the farm to collect the goods and the farmer has known that mediation should have been followed and knows that it hasn't been followed," he said.
He says lenders are breaking the law by repossessing farm equipment without mediation.
Mr Foy-Brown says it is difficult for producers to have machinery returned once it has been taken.
"In a couple of cases the farmer was so distressed that they've tried to make a complaint, some of which have gone to the financial ombudsmen service or the credit ombudsmen," he said.
However, in a couple of instances the lenders aren't a member of the dispute resolution service, so they're sort of limited as to what they can do."
A rural financial counsellor says there has been an increase in farm machinery being illegally repossessed in the Orange district.
Andrew Foy-Brown from the Orange Rural Financial Counselling Service says banks and finance companies are required by law to offer farm debt mediation before taking equipment such as headers and tractors.
He says he is helping several grain producers who have had machinery such as headers, tractors and combine harvesters illegally confiscated.
Mr Foy-Brown says the laws were put in place to stop lenders taking advantage of farmers who are struggling to make ends meet.
"They're concerned firstly that they're in arrears but then they're concerned that their equipment's going to be repossessed or in a couple of cases the collection agent has been on the farm to collect the goods and the farmer has known that mediation should have been followed and knows that it hasn't been followed," he said.
He says lenders are breaking the law by repossessing farm equipment without mediation.
Mr Foy-Brown says it is difficult for producers to have machinery returned once it has been taken.
"In a couple of cases the farmer was so distressed that they've tried to make a complaint, some of which have gone to the financial ombudsmen service or the credit ombudsmen," he said.
However, in a couple of instances the lenders aren't a member of the dispute resolution service, so they're sort of limited as to what they can do."
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