Credit Contracts and Consumer Finance Act 2003

Reprint as at 6 June 2015

Coat of Arms of New Zealand

Credit Contracts and Consumer Finance Act 2003

Public Act
2003 No 52
Date of assent
13 October 2003
see section 2

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Business, Innovation, and Employment.


6Meaning of credit
7Meaning of credit contract
8Meaning of buy-back transaction
8AMeanings of associated and associated person
8BProvisions affecting application of amendments to this Act
9Act binds the Crown
9AOutline of Part
9CLender responsibility principles
9DProceedings for breach of legal obligations under other Acts
9EPurpose of Responsible Lending Code
9FContent of Responsible Lending Code
9GPreparation and issue of Responsible Lending Code
9HResponsible Lending Code comes into force by notice in Gazette
9IAmendment of Responsible Lending Code
9JPublication of standard form contract terms
9KPublication of costs of borrowing
9LExtended meaning of business premises
10When this Part applies
11Meaning of consumer credit contract
12Investment purposes
13Presumption relating to consumer credit contract
14Effect of declaration
15Certain contracts not consumer credit contracts
15APart does not apply to pawnbroking contract
16Lease of goods treated as consumer credit contract
17Initial disclosure
18Continuing disclosure
19Content of continuing disclosure statement
20Opening unpaid balance must not exceed closing unpaid balance of previous continuing disclosure statement
21Continuing disclosure not required
22Disclosure of agreed changes
23Disclosure of changes following exercise of power
24Request disclosure
25Disclosure of guarantee
26Disclosure of changes to guarantors
26ADisclosure of transfer of rights of creditor under consumer credit contract
27Right to cancel consumer credit contract
28Notice of cancellation, return of property, and payment of cash price
29Right of cancellation does not apply in certain situations
30Effect of cancellation
31Effect of credit sale cancellation
32Disclosure standards
34Creditor, etc, may voluntarily use model disclosure statement if not required to use mandatory form
35How disclosure is made
36End of day
37Creditor to ensure that contract specifies annual interest rate or rates
38Early debit or payment of interest charges prohibited
39Limit on interest charges
40Default interest charges
41Unreasonable credit fee or default fee
42Establishment fees
43Prepayment fees
44Credit fees other than establishment fees and prepayment fees
44ADefault fees
44BCompliance with Code is evidence that fees are not unreasonable
45Fees or charges passed on by creditor
46Crediting of payments
47Dating and adjustments of debits and credits in accounts
48Recovery of payments
49Part prepayments
50Debtor’s right to full prepayment
51Amount required for full prepayment
52Rebate of insurance
52ARebate of repayment waiver
52BRebate of extended warranty
53Termination of consumer credit insurance contract
54Creditor’s loss arising from full prepayment
55Changes on grounds of unforeseen hardship
56Changes that can be made
57Application may not be made in certain circumstances
57AObligations of creditor in relation to application
58Changes by court
59Creditor may apply for variation of change
59AHow notices may be given
60Consumer leases
61Presumption relating to consumer lease
62Declaration concerning consumer lease
63Application of disclosure provisions
64Initial disclosure of consumer lease
65Variation disclosure of consumer leases
66Variation disclosure not required [Repealed]
67Request disclosure for consumer leases
68Amount payable on termination
69Restrictions on credit-related insurance, repayment waivers, and extended warranties
70Disclosure of credit-related insurance, repayment waiver, or extended warranty
71Application of disclosure provisions
72Initial disclosure of buy-back transaction
73Independent legal advice must be given to occupier
74Buy-back transactions involving buy-back promoter
75Land cannot be dealt with without leave of court if initial disclosure not made or no independent legal advice given
76Interest of occupier is caveatable interest
77Variation disclosure of buy-back transactions
78Variation disclosure not required [Repealed]
79Request disclosure for buy-back transactions
80Unreasonable buy-back fees or buy-back default fees
81Fees or charges passed on by transferee
82Unreasonable fees payable to buy-back promoter or associated person
83No limit on Part 2
83AOutline of Part
83BReferences to credit contracts include security agreements
83CApplication of Part
83DPart does not create right to repossess, etc
83ECircumstances in which creditor can repossess consumer goods
83FDuty to ensure goods are specifically identified
83GCreditor must serve repossession warning notice on debtor and other persons before taking possession of consumer goods
83HDebtor may voluntarily deliver consumer goods
83IRules relating to accessions (goods that are installed in, or affixed to, other goods)
83JEffect of debtor’s complaint or application on grounds of unforeseen hardship on creditor’s rights to enforce credit contract
83KSubsequent complaints
83LUse of disabling device
83MConnection or use of disabling device in connection with certain goods prohibited
83NCreditor must allow debtor time to remedy default or at least 15 days to elapse
83ODocuments to be produced on entry
83PEntry if occupier not present
83QCreditor must exercise right to enter premises in accordance with lender responsibility principles
83RCreditor must not enter premises if complaint not resolved or unforeseen hardship application not decided
83SCreditor must not enter residential premises at certain times
83TRestrictions applying in relation to persons repossessing consumer goods
83VNotice to be given to debtor, guarantor, and other creditors after repossession of consumer goods
83WCreditor must not sell consumer goods until 15 days after post-repossession notice
83XConsequences of selling within 15 days of post-repossession notice
83YCreditor must offer consumer goods for sale
83ZRules relating to sale by creditor
83ZADebtor may obtain valuation of consumer goods before sale
83ZBDebtor’s right to reinstate credit contract
83ZCConsequences of reinstating credit contract
83ZDDebtor’s right to introduce buyer
83ZEDebtor’s right to settle credit contract
83ZFDebtor’s right to force sale
83ZGDisposal of consumer goods to purchaser for value and in good faith
83ZHExtinguishment of creditor’s security interest and subordinate security interests on sale
83ZICreditor to give statement of account to debtor, guarantor, and other interested persons
83ZJDistribution of surplus
83ZKSurplus may be paid into court
83ZLDebtor’s, etc, right to recover surplus
83ZMLimit on creditor’s right to recover from debtor
83ZNCredit contract may not provide for security interest over certain consumer goods
83ZOContravening provision of no effect
83ZPExclusion for fixtures
83ZQService of notices
83ZRPart does not limit application of rules relating to conduct of servants or agents
84Compliance programmes
85Jurisdiction of High Court
86Jurisdiction of District Courts
87Jurisdiction of Disputes Tribunals
87AJurisdiction of dispute resolution schemes
88Creditors, creditors’ agents, lessors, transferees, and buy-back promoters liable for statutory damages
89Amount of statutory damages
90Enforcement of statutory damages
91Court may reduce statutory damages
92Guidelines for reducing statutory damages
93Court’s general power to make orders
94Court orders
94ACourt orders in relation to repossessions
95Miscellaneous provisions concerning court’s general power to make orders
97Injunctions restraining conduct of particular kind
98Interim injunction
99Enforcement of consumer credit contract prohibited
99AEnforcement of rights of repossession, etc, prohibited
99BEnforcement prohibited if creditor unregistered
100Enforcement of guarantee prohibited
101Enforcement of consumer lease prohibited
102Enforcement of buy-back transaction prohibited
102AInfringement offences
103Other offences
104Conviction for 2 or more offences
105When proceedings may be commenced
105AInfringement fee, etc, defined
105BInfringement offence alleged
105CIssue of infringement notice
105DProcedural requirements for infringement notices
105EWhat Commission does with infringement fees
105FRegulations relating to infringement offences
106Reasonable mistake defence
107Relevance of compliance programme
108Power to order certain persons not to act as creditors, lessors, transferees, or buy-back promoters
109Who may apply and nature of order
111Role and functions of Commission under this Act
112Commission’s rights to appear and adduce evidence
113Application of Commerce Act 1986
114Additional proceedings
115Disposal of things seized
116Court order for disposal of things seized to be suspended on conviction
117Application of Part
118Meaning of oppressive
119Collateral contracts and linked transactions
120Reopening of credit contracts, consumer leases, and buy-back transactions
121Refusal to agree to early termination, variation, or waiver
122Reopening credit contracts involved in arrangement
123Time and circumstances relevant to reopening credit contracts, consumer leases, or buy-back transactions
124Guidelines for reopening credit contracts, consumer leases, and buy-back transactions
125When reopening proceedings may be commenced
127Power of court on reopening credit contract, consumer lease, or buy-back transaction
128Costs in consumer cases
129Persons who share in profits or have beneficial interest in reopened credit contract, consumer lease, or buy-back transaction
130Time of exercise of court’s powers
131No limit on sections 41, 80, and 82
132Provisions relating to assignment of credit contracts, consumer leases, or buy-back transactions
133Changes, deferrals, or postponements under credit contracts and consumer leases
134Right to set-off
135No contracting out
136Application of law relating to illegal contracts
137Conflict of laws
139Acts amended
140Repeal of Credit Contracts Act 1981 and Hire Purchase Act 1971
141Transitional provision
141AApplication, savings, and transitional provisions relating to amendments to Act
142Election for Act to apply
143Continuing application of Credit Contracts Act 1981 and Hire Purchase Act 1971
Reprint notes