New Zealand Legislation: Acts

26 Disclosure of changes to guarantors

• (1) Every creditor who takes a guarantee of a consumer credit contract must ensure that disclosure of the information set out in subsection (2) is made to every guarantor under the guarantee if—

  • (a) the debtor and the creditor agree to a change to the contract that increases the obligations that the debtor would otherwise have or reduces the time for payment of any payment to be made under the contract; or

  • (b) the creditor exercises a power under the contract that has the effect of increasing the obligations that the debtor would otherwise have or reducing the time for payment of any payment to be made under the contract.

  (2) The information that must be disclosed under subsection (1) is as follows:

  • (a) full particulars of the change:

  • (b) any other information prescribed by regulations to be information that must be disclosed under subsection (1).

  (3) Disclosure under subsection (1) must be made within 5 working days of the day on which—

  • (a) the change is agreed to by the debtor and the creditor, in the case of subsection (1)(a); or

  • (b) the change takes effect, in the case of subsection (1)(b).

  (4) If the creditor has exercised a power under the credit contract to change the amount of an interest rate or to change the amount of any fee or charge payable, the creditor may, instead of complying with section 35, make disclosure in accordance with any publication requirements prescribed by regulations for the purposes of this section.