Credit Contracts and Consumer Finance Act 2003

5 Interpretation
  • In this Act, unless the context otherwise requires,—

    advance means—

    • (a) money provided to the debtor or to another person to the order of the debtor:

    • (b) a pre-existing monetary obligation of the debtor that is paid, discharged, or consolidated by the creditor:

    • (c) the cash price of any property or services purchased by the debtor from the creditor:

    • (d) in the case of the use of a credit card to purchase property or services from a person who is not the creditor or to obtain money, the agreed price of the property or services or the monetary amount, as the case may be

    annual interest rate means a rate specified in the credit contract as an annual interest rate

    broker means a person who, for consideration, assists a person in obtaining credit

    buy-back default fees means fees or charges payable on a breach of a buy-back transaction by an occupier or on the enforcement of a buy-back transaction by a transferee

    buy-back fees means fees or charges payable by the occupier under a buy-back transaction, or payable by the occupier to, or for the benefit of, the transferee in connection with a buy-back transaction (including any insurance premiums payable if the transferee requires the occupier to obtain insurance cover from a particular insurer); but does not include the following:

    • (a) a buy-back default fee:

    • (b) government charges, duties, taxes, or levies

    buy-back promoter means a person who introduces the parties to a buy-back transaction to each other if—

    • (a) the person receives a fee in connection with the buy-back transaction from the occupier, the transferee, or any other person; or

    • (b) an associated person of that person receives a fee in connection with the buy-back transaction from the occupier, the transferee, or any other person

    buy-back transaction has the meaning set out in section 8

    cash price, in relation to property sold or leased, or to services provided under a contract, means—

    • (a) the lowest price at which a person could have purchased that property or those services from the vendor, lessor, or provider on the basis of payment in full at the time the contract was made; or

    • (b) if there is no price in accordance with paragraph (a), the fair market value of that property or those services at the time the contract was made

    charge for an optional service means a fee or charge for a service or benefit that is offered to the debtor in connection with a credit contract if the debtor does not have to accept the service or benefit as a condition of entering into the contract

    Commission means the Commerce Commission established by the Commerce Act 1986

    consumer credit contract has the meaning set out in section 11

    consumer credit insurance means insurance cover in the event of the insured's disability or death or the insured contracting a sickness, sustaining an injury, or becoming unemployed, if the liability of the insurer is to be determined by reference to the liability of the insured under a credit contract or a consumer lease

    consumer lease has the meaning set out in section 60

    court means, in relation to any matter, the court, tribunal, or arbitral tribunal by or before which the matter falls to be determined

    credit has the meaning set out in section 6

    credit contract has the meaning set out in section 7

    credit fees means fees or charges payable by the debtor under a credit contract, or payable by the debtor to, or for the benefit of, the creditor in connection with a credit contract (including any insurance premiums payable if the creditor requires the debtor to obtain insurance cover from a particular insurer); but does not include the following:

    • (a) interest charges:

    • (b) a charge for an optional service:

    • (c) a default fee or a default interest charge:

    • (d) government charges, duties, taxes, or levies

    credit limit means the maximum unpaid balance permitted under the credit contract

    credit-related insurance means, in connection with a credit contract or consumer lease,—

    • (a) insurance over secured property or leased goods; or

    • (b) insurance that provides cover for the shortfall that occurs if secured property or leased goods are totally or substantially destroyed and the insurance proceeds from another insurance contract are insufficient to pay any outstanding obligations of the debtor under the credit contract or the lessee under the consumer lease; or

    • (c) consumer credit insurance

    credit sale means a contract involving the sale of property or the provision of services under which payment of the whole or a part of the purchase price is deferred; and includes a lease that is to be treated as a credit sale under section 16

    creditor means a person who provides, or may provide, credit under a credit contract; and, if the rights of that person are transferred by assignment or by operation of law, includes the person for the time being entitled to those rights

    daily interest rate means the rate determined by dividing the annual interest rate by 365

    debtor means a person to whom credit has been provided, or may be provided, under a credit contract; and, if the rights of that person are transferred by assignment or by operation of law, includes the person for the time being entitled to those rights

    default fees means fees or charges payable on a breach of a credit contract by a debtor or on the enforcement of a credit contract by a creditor; but does not include default interest charges

    default interest charges means additional interest charges payable on a breach of a credit contract by a debtor

    electronic includes electrical, digital, magnetic, optical, electromagnetic, biometric, and photonic

    electronic communication means a communication by electronic means

    establishment fees means the fees or charges payable under the credit contract that relate to the costs incurred by the creditor in connection with the application for credit, processing and considering that application, documenting the contract, and advancing the credit; but does not include any fee or charge to the extent that it is a charge for an optional service

    estate means a fee simple estate, a leasehold estate, or a stratum estate

    extended warranty means an agreement between a creditor or lessor and a debtor or lessee under which the creditor or lessor, for an additional consideration, agrees to repair or replace defective goods outside of the warranty period that would otherwise apply

    family trust means a trust that is established primarily to benefit either or both of the following:

    • (a) a natural person for whom the settlor has natural love and affection:

    • (b) an organisation or a trust whose income is exempt under section CB 4(1)(c) or (e) of the Income Tax Act 1994

    full costs includes reasonable costs incurred between solicitor and client, fees, and other expenses

    full prepayment means the payment of the unpaid balance before the last amount to be paid under the credit contract becomes payable

    goods means personal chattels other than money and choses in action

    guarantor, in relation to a credit contract,—

    • (a) means a person who—

      • (i) guarantees the performance of a debtor's obligations under the contract; or

      • (ii) indemnifies a creditor against any loss that the creditor may incur in connection with the contract; or

      • (iii) assumes liability for performing the obligations of a debtor under the contract; but

    • (b) does not include a person who indemnifies a creditor against any loss that the creditor may incur in connection with the contract under a contract of insurance

    information system means a system for producing, sending, receiving, storing, displaying, or otherwise processing electronic communications

    interest charge means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit contract

    lawyer has the meaning given to it by section 6 of the Lawyers and Conveyancers Act 2006

    lease means a contract for the hire of goods

    occupier has the meaning set out in section 8

    oppressive has the meaning set out in section 118

    paid adviser means a person who acts for consideration as an adviser to, or as a trustee, nominee, or agent of, 1 or more of the parties; but does not include a person who is an employee of 1 or more of the parties

    part prepayment means the payment of an amount that is less than the unpaid balance before that amount is payable under the credit contract

    payment, in relation to a credit sale, includes a deposit or a trade-in allowance

    property means land, money, goods, choses in action, goodwill, and every valuable thing, whether real or personal, and whether situated in New Zealand or elsewhere

    regulations means regulations in force under this Act

    related company has the same meaning as in section 2(3) of the Companies Act 1993

    repayment waiver means an agreement between a creditor or lessor and a debtor or lessee under which the creditor or lessor, for an additional consideration, agrees to waive the creditor's or lessor's right to any amount payable under the credit contract or consumer lease in the event of the unemployment of, sickness of, injury to, or the disability or death of the debtor or lessee

    revolving credit contract means a credit contract, whether or not the contract specifies a credit limit, if the contract—

    • (a) anticipates multiple advances, to be made when requested by the debtor in accordance with the contract; and

    • (b) does not limit the total amount to be advanced to the debtor under the contract

    security interest means an interest in property created or provided for by a transaction that, in substance, secures payment or performance of an obligation under a credit contract, consumer lease, or buy-back transaction, without regard to—

    • (a) the form of the transaction; and

    • (b) the identity of the person who has title to the property that is subject to the security

    transferee has the meaning set out in section 8

    unpaid balance means the amount owing under a credit contract at a particular time, being the difference between all amounts credited and all amounts debited to the debtor under the contract at that time

    unpaid daily balance, in relation to a day, means the unpaid balance under a credit contract at the end of that day

    working day means a day of the week other than—

    • (a) a Saturday, a Sunday, Waitangi Day, Good Friday, Easter Monday, Anzac Day, the Sovereign's birthday, and Labour Day; and

    • (b) a day in the period commencing with 25 December in a year and ending with 2 January in the following year; and

    • (c) if 1 January falls on a Friday, the following Monday; and

    • (d) if 1 January falls on a Saturday or a Sunday, the following Monday and Tuesday.

    Section 5 associated person: repealed, on 25 August 2005, by section 75 of the Overseas Investment Act 2005 (2005 No 82).

    Section 5 lawyer: substituted, on 1 August 2008, by section 348 of the Lawyers and Conveyancers Act 2006 (2006 No 1).