Credit Contracts and Financial Services Law Reform Bill

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Hon Craig Foss

Credit Contracts and Financial Services Law Reform Bill

Government Bill

104—2

As reported from the Commerce Committee

Contents

Commentary

Key

1 Title

2 Commencement

Part 1
Amendments to Credit Contracts and Consumer Finance Act 2003

Subpart 1Amendments to Credit Contracts and Consumer Finance Act 2003

3 Principal Act

4 Section 3 replaced (Purposes)

5 Section 4 amended (Overview)

6 Section 5 amended (Interpretation)

6A Section 8 amended (Meaning of buy-back transaction)

7 New section 8B inserted (Provisions affecting application of amendments to this Act)

8 New section 7A inserted (Credit contract may provide for security interest)

9 New Part 1A inserted

10 Section 10 amended (When this Part applies)

11 Section 11 amended (Meaning of consumer credit contract)

11A Section 14 amended (Effect of declaration)

12 Section 15 amended (Certain contracts not consumer credit contracts)

12A New section 15A inserted (Part does not apply to pawnbroking contract)

12B Section 16 amended (Lease of goods treated as consumer credit contract)

13 Section 17 amended (Initial disclosure)

13A Section 19 amended (Content of continuing disclosure statement)

14 Section 21 amended (Continuing disclosure not required)

15 Section 22 amended (Disclosure of agreed changes)

16 Section 23 amended (Disclosure of changes following exercise of power)

17 Section 24 amended (Request disclosure)

18 Section 25 amended (Disclosure of guarantee)

19 New section 26A inserted (Disclosure of transfer of rights of creditor under consumer credit contract)

20 Section 27 amended (Right to cancel consumer credit contract)

21 Section 30 replaced (Effect of cancellation)

21A Section 31 amended (Effect of credit sale cancellation)

22 Section 32 amended (Disclosure standards)

22A Section 34 replaced (Model forms)

23 Section 40 amended (Default interest charges)

24 Section 41 replaced (Unreasonable credit fee or default fee)

25 Section 43 replaced (Prepayment fees)

26 Section 44 replaced (Other credit fees and default fee)

26 Section 44 replaced (Other credit fees and default fee)

27 Section 45 amended (Fees or charges passed on by creditor)

27A Section 48 amended (Recovery of payments)

28 Section 51 amended (Amount required for full prepayment)

29 Section 52 amended (Rebate of insurance)

30 New sections 52A and 52B inserted

31 Section 55 amended (Changes on grounds of unforeseen hardship)

32 Section 57 amended (Application may not be made in certain circumstances)

33 New section 57A inserted (Obligations of creditor in relation to application)

34 Section 58 amended (Changes by court)

34A New section 59A inserted (How notices may be given)

34B Section 60 amended (Consumer leases)

34C Section 62 amended (Declaration concerning consumer lease)

35 Section 66 repealed (Variation disclosure not required)

36 Section 67 amended (Request disclosure for consumer leases)

37 Section 69 amended (Restrictions on credit-related insurance, repayment waivers, and extended warranties)

38 Section 70 amended (Disclosure of credit-related insurance, repayment waiver, or extended warranty)

39 Section 78 repealed (Variation disclosure not required)

40 Section 79 amended (Request disclosure for buy-back transactions)

41 Section 80 amended (Unreasonable buy-back fees or buy-back default fees)

42 Section 82 amended (Unreasonable fees payable to buy-back promoter or associated person)

43 New Part 3A inserted

44 Section 86 amended (Jurisdiction of District Courts)

45 Section 87 amended (Jurisdiction of Disputes Tribunals)

45A New section 87A inserted (Jurisdiction of dispute resolution schemes)

46 Section 88 amended (Creditors, lessors, transferees, and buy-back promoters liable for statutory damages)

47 Section 89 amended (Amount of statutory damages)

48 Section 90 amended (Enforcement of statutory damages)

48A Section 91 amended (Court may reduce statutory damages)

49 Section 93 amended (Court's general power to make orders)

50 Section 94 amended (Court orders)

51 New section 94A inserted (Court orders in relation to repossessions)

52 Section 95 amended (Miscellaneous provisions concerning court's general power to make orders)

53 Section 96 amended (Injunctions)

54 Section 99 amended (Enforcement of consumer credit contract prohibited)

55 New sections 99A and 99B inserted

56 Section 101 amended (Enforcement of consumer lease prohibited)

57 Section 102 amended (Enforcement of buy-back transaction prohibited)

58 Section 103 amended (Offences)

58 Section 103 replaced (Offences)

59 Section 105 replaced (When proceedings may be commenced for certain offences)

59A New sections 105A to 105F inserted

60 Section 108 amended (Power to order certain persons not to act as creditors, lessors, transferees, or buy-back promoters)

61 Section 111 amended (Role and functions of Commission under this Act)

62 Section 119 amended (Collateral contracts and linked transactions)

63 Section 124 replaced (Guidelines for reopening credit contracts, consumer leases, and buy-back transactions)

64 Section 135 amended (No contracting out)

65 Section 138 amended (Regulations)

66 New section 141A inserted (Application, savings, and transitional provisions relating to amendments to Act)

67 New Schedule 1AA inserted

68 Schedule 1 amended

69 New Schedules 3A and 3B inserted

Subpart 2Consequential amendments to, or repeals of, other Acts

70 Consequential amendments to, or repeals of, other Acts

Part 2
Amendments to Financial Service Providers (Registration and Dispute Resolution) Act 2008

Subpart 1Amendments to Financial Service Providers (Registration and Dispute Resolution) Act 2008

71 Principal Act

72 New section 2A inserted (Purposes of this Act)

73 Section 3 amended (Overview)

74 Section 4 amended (Interpretation)

74A Section 5 amended (Meaning of financial service)

74B Section 7 amended (Application of Act)

74C Subpart 1 heading in Part 2 amended

75 Section 11 amended (No being in business of providing financial service unless registered)

76 Section 12 amended (No holding out that in business of providing financial service unless registered)

77 Section 13 amended (Qualifications for registration as financial service provider)

78 Section 14 amended (Disqualified person)

79 Section 15 amended (Application to be registered as financial service provider)

80 New sections 15AA to 15B inserted

81 Section 16 amended (Registration of financial service provider)

82 Section 17 amended (Duty to notify changes relating to financial service provider)

83 Section 18 amended (Deregistration of financial service provider)

84 New sections 18AA to 18B inserted

84A Section 23 and cross-heading repealed

85 Section 26 amended (Purposes of register)

86 Section 27 amended (Contents of register)

87 Section 34 amended (Sharing information with other persons or bodies)

88 Section 37 amended (Registrar’s inspection powers)

89 Section 42 amended (Appeals from Registrar’s decisions)

89A Section 43 amended (Decisions continue in effect until appeal)

90 Section 48 amended (Financial service provider must be member of dispute resolution scheme)

91 Section 49F amended (Members of dispute resolution scheme must comply with rules and binding resolutions)

92 Section 49G amended (Offence to fail to comply with District Court order)

93 Section 50 amended (Meaning of approved dispute resolution scheme)

94 Section 52 amended (Mandatory considerations for approval)

95 Section 56 amended (Withdrawal of approval)

96 Section 57 amended (Notice of intention to withdraw approval)

97 Section 61 replaced (Effect of withdrawal of approval on members of dispute resolution scheme)

98 Section 63 amended (Rules about approved dispute resolution scheme)

99 Section 66 amended (Minister's consideration of change of rules)

100 Section 67 amended (Duty to co-operate and communicate information in certain circumstances)

101 Subpart 3 of Part 3 repealed

102 Cross-heading above section 78 amended

103 Section 78 amended (Publication of details relating to approved dispute resolution schemes and reserve scheme)

104 Section 78A amended (Levy)

104 Section 78A and cross-heading repealed

105 Section 79 amended (Regulations under this Part)

106 New section 79AA inserted (Appointment of interim dispute resolution scheme)

107 Section 79A amended (Pecuniary order for contravening wholesale certification requirement)

107A Section 79B amended (Compensation for contravention of wholesale certification requirement)

Subpart 2Consequential amendments to other Acts

108 Consequential amendments to other Acts

Schedule 1
New Schedule 1AA inserted

Schedule 2
New Schedules 3A and 3B inserted

Schedule 3
Consequential amendments to, or repeals of, other Acts

Schedule 4
Consequential amendments to other Acts

Legislative history


The Parliament of New Zealand enacts as follows: