Credit Contracts and Consumer Finance Regulations 2004

Reprint as at 3 September 2020

Coat of Arms of New Zealand

Credit Contracts and Consumer Finance Regulations 2004

(SR 2004/240)

Silvia Cartwright, Governor-General

Order in Council

At Wellington this 9th day of August 2004

Present:
Her Excellency the Governor-General in Council

Note

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.

These regulations are administered by the Ministry of Business, Innovation, and Employment.

Pursuant to section 138 of the Credit Contracts and Consumer Finance Act 2003, Her Excellency the Governor-General, acting on the advice and with the consent of the Executive Council, makes the following regulations.

Contents

1Title
2Commencement
3Interpretation
4Status of examples
4APublication of costs of borrowing information
4BInformation about interest rates
4CInformation about charging interest
4DInformation about credit fees and default fees
4EMinimum repayment warning
5Alternative publication requirements
6Assumptions
6AHigh-cost consumer credit contracts for which costs of borrowing must not exceed loan advances
6BRate of charge
7Rebate of consumer credit insurance contract premium
7ARebate of repayment waiver
7BRebate of extended warranty
8Application of regulation 9
9Calculation of reasonable estimate of creditor’s loss if interest rate fixed for whole term
10Application of regulation 11
11Calculation of reasonable estimate of creditor’s loss if interest rate fixed for part of term
12Model disclosure statements
13Terms and conditions for use of model disclosure statements
14Format and layout may not be modified
15Other information
16Model disclosure statement may be divided into 2 parts
17Other key information
18Exemptions from provisions relating to consumer credit contracts where local authority to provide credit
18AExemption from enforcement prohibition [Revoked]
18BExemptions from provisions relating to repossession of consumer goods in cases involving motor vehicles
18CExemptions from disclosure requirements for peer-to-peer lenders
18DExemptions for banks for COVID-19 from provisions relating to consumer credit contracts
18EExemptions for non-bank lenders for COVID-19 from provisions relating to consumer credit contracts
18FExemption for credit under residential earthquake-prone building financial assistance scheme
19Section 26A of Act not to apply if transfer made for purposes of securitisation or covered bond arrangements or similar arrangements
20Contract manager appointed by new creditor
21New creditor was contract manager before transfer
Gazette Information
Reprint notes

Regulations

1 Title

These regulations are the Credit Contracts and Consumer Finance Regulations 2004.

2 Commencement

These regulations come into force on 1 April 2005.

3 Interpretation

(1)

In these regulations, unless the context otherwise requires,—

fixed interest period means a period of a fixed rate contract for which a fixed interest rate applies

fixed interest rate means the rate of interest that is fixed for the term or any part of the term

fixed rate contract means a consumer credit contract that has a fixed interest rate

term, in relation to a fixed rate contract, means the period between the first advance made under the contract and the last payment anticipated by the contract.

(2)

In these regulations, unless the context otherwise requires, variables contained in formulae are calculated as at the date of full prepayment.

4 Status of examples

(1)

Every example used in these regulations is part of these regulations.

(2)

An example used in these regulations is only illustrative of the provision to which it relates. It does not limit the provision.

(3)

If an example and the provision to which it relates are inconsistent, the provision prevails.

Publication of costs of borrowing information

Heading: inserted, on 6 June 2015, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

4A Publication of costs of borrowing information

(1)

This regulation applies for the purpose of section 9K of the Act.

General rules

(2)

The information required to be made publicly available (costs of borrowing information) must contain, for every class of credit contract offered by the creditor, the information prescribed by regulations 4B to 4D.

Rules about publication on Internet sites

(3)

To meet the requirements under section 9K(3)(a) of the Act,—

(a)

each part of the costs of borrowing information for a class of credit contracts must be presented with the other parts of the costs of borrowing information for that class of credit contracts in a form that enables a borrower to ascertain readily the total costs of borrowing (for example, interest rates and fees for a class of credit contracts may be presented together on the same webpage or with prominent links provided between them); and

(b)

the costs of borrowing information must be accessible at all reasonable times.

Rule when information supplied on request

(4)

Costs of borrowing information that is supplied to a requestor under section 9K(4) of the Act must include the date from which the information applies (for example, fees current as at [date]) or the date on which the information is supplied.

Regulation 4A: inserted, on 6 June 2015, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

4B Information about interest rates

(1)

The costs of borrowing information must include—

(a)

the annual interest rate or rates (with the rate or rates being expressed in terms of a percentage); and

(b)

if there is more than 1 rate, how or when each rate applies; and

(c)

if an annual interest rate is fixed for a period, the period during which the annual interest rate is fixed; and

(d)

if an annual interest rate is variable or adjustable, a statement to that effect.

(2)

The rate or rates made publicly available in the costs of borrowing information—

(a)

must be the rate or rates that are ordinarily available to borrowers who meet the lender’s borrowing requirements for that class of credit contracts; and

(b)

must be the current annual interest rate or rates, if the rate is variable or adjustable; and

(c)

must, if expressed by reference to a range, be accompanied by a brief description of the factors that the lender may consider to determine the specific interest rate for particular classes of borrower.

(3)

If a higher interest rate than the rate or rates made publicly available under subclauses (1) and (2) may apply to a specific borrower (or class of borrowers) or in specific situations, the costs of borrowing information must include—

(a)

a statement to that effect; and

(b)

a brief description of the factors that the lender may consider to determine the specific interest rate for that borrower or those borrowers or situations (if applicable); and

(c)

the margin (or maximum margin) that may be added or the interest rate (or maximum interest rate) that may apply (if known).

(4)

If a higher interest rate may be imposed under the contract in the event of a default in payment or the credit limit being exceeded, this regulation applies as follows:

(a)

references to annual interest rate include the default interest charge rate; and

(b)

the creditor must make the costs of borrowing information for the default interest charge rate publicly available in accordance with this regulation separately from the information on the annual interest rates.

Regulation 4B: inserted, on 6 June 2015, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

4C Information about charging interest

(1)

The costs of borrowing information must include a brief description of the frequency with which interest charges may be debited under the contract.

(2)

However, the costs of borrowing information need not include that description if interest charges will always be debited as frequently as, or less frequently than, payments become due under the contract.

Regulation 4C: inserted, on 6 June 2015, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

4D Information about credit fees and default fees

The costs of borrowing information must contain a description of the credit fees and default fees that are, or may become, payable, including—

(a)

when each fee is, or will become, payable; and

(b)

the amount (or maximum amount) of each fee if ascertainable, or, if not, the method of calculation of the fee.

Regulation 4D: inserted, on 6 June 2015, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

Minimum repayment warning

Heading: inserted, on 6 June 2015, by regulation 5 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

4E Minimum repayment warning

(1)

For the purposes of section 19(i) of the Act, the prescribed minimum repayment warning required in the case of a credit card contract is as follows:

If you make only the minimum payment each month*, you will pay more interest and it will take you longer to pay off your balance. Visit www.sorted.org.nz/creditcards to calculate how you can pay off your credit card balance faster and pay less in interest.

*Replace with other payment period, if applicable.

(2)

The format, font, and font size of the minimum repayment warning must be easily readable.

(3)

The minimum repayment warning must be presented reasonably close to the amount stated as the minimum payment for each payment period.

(4)

No minimum repayment warning is required to be included in a continuing disclosure statement in the case of a credit card contract if—

(a)

the closing unpaid balance is below $100; or

(b)

a payment arrangement between the creditor and debtor replaces the minimum payment that would otherwise be required under the contract to be paid in each payment period; or

(c)

an interest-free period applies to the closing unpaid balance.

Compare: National Consumer Credit Protection Regulations 2010 r 79B (Aust)

Regulation 4E: inserted, on 6 June 2015, by regulation 5 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

Alternative publication requirements

5 Alternative publication requirements

For the purposes of sections 23(4) and 26(4) of the Act, a creditor may make disclosure in relation to a change to the amount of an interest rate, or to the amount of any fee or charge payable, by—

(a)

displaying the information at all of the creditor’s places of business that are accessed by the public so that the information is reasonably visible (at all reasonable times) to persons entering those places of business; and

(b)

advertising the information at least once in the daily newspapers published in all of the following areas in which the creditor carries on business: Whangarei, Auckland, Hamilton, Rotorua, Hawkes Bay, New Plymouth, Palmerston North, Wellington, Nelson, Christchurch, Dunedin, and Invercargill; and

(c)

if the creditor has a website, posting the information on the creditor’s website in a form that is publicly accessible (at all reasonable times).

Assumptions

6 Assumptions

For the purposes of section 33 of the Act, the assumptions that may be used or applied when disclosing information that is required to be disclosed under the Act (and the terms and conditions of those assumptions) are set out in Schedule 1.

Regulation 6: amended, on 1 April 2005, by regulation 3 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

High-cost consumer credit contracts

Heading: inserted, on 1 May 2020, by section 69(4) of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).

6A High-cost consumer credit contracts for which costs of borrowing must not exceed loan advances

For the purposes of the definition of high-cost consumer credit contract, the weighted average annual interest rate must be calculated as follows:

weighted average annual interest rate = Rn = 1 [(rn × Un) ÷ U]

where—

R

is the number of annual interest rates applying on a day

rn

is each annual interest rate

Un

is the unpaid balance to which rn applies

U

is the total unpaid balance.

Example 1

Ms C has a credit card that says that the first $1,000 was charged at an interest rate of 20%, and the rest of the unpaid balance (say, the next $2,000) was charged at an annual interest rate of 30%.

R = 2

r1 = 20%; r2 = 30%

U1 = $1,000; U2 = $2,000

U = $3,000

This gives a weighted average annual interest rate that day of 26.7%. The contract is not a high-cost consumer credit contract.

Example 2

An interest rate of 40% applies to the first $1,000 of the unpaid balance, and another 45% applies to the entire unpaid balance of $3,000.

R = 2

r1 = 40%; r2 = 45%

U1 = $1,000; U2 = $3,000

U = $3,000

This gives a weighted average annual interest rate that day of 58.3%—so it will be a high-cost consumer credit contract, even though each individual annual interest rate is below 50%.

Regulation 6A: inserted, on 1 May 2020, by section 69(4) of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).

Rate of charge

Heading: inserted, on 1 June 2020, by section 69(4) of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).

6B Rate of charge

(1)

For the purposes of section 45H of the Act, the rate of charge must be calculated as follows:

Rate of charge

where—

c

is the total amount of charges (as defined in section 45H(5) of the Act) that is payable under the contract

r

is the rate of charge (percent)

T

is the number of days between the first advance under the contract and the final payment made, or anticipated to be made, under the contract

t

is day t

Ut

is the unpaid daily balance on that day excluding the amount of the costs of borrowing within the meaning of section 45E of the Act that have accrued under the contract.

Example

A contract provides for a $500 loan with 200% interest pa and a $20 establishment fee with 4 weekly repayments. The contract provides for total interest and fees of $70.80 to be charged under the contract. The rate of charge calculation requires that amount to be divided by the sum of the daily balances of credit provided. In this case, that sum is $9,131.19. So the rate of charge is 0.775%.

(2)

For purposes of the definition of credit provided in section 45H(5) of the Act, the amount that must be excluded from the unpaid balance is the amount of the costs of borrowing within the meaning of section 45E of the Act that have accrued under the contract.

Regulation 6B: inserted, on 1 June 2020, by section 69(4) of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).

Rebate of premium paid under consumer credit insurance contract

7 Rebate of consumer credit insurance contract premium

For the purposes of section 52 of the Act, the proportionate rebate of the premium paid under a consumer credit insurance contract financed under the consumer credit contract must be determined in accordance with the following formula:

formula

where—

y

is the amount of the rebate of the premium

p

is the amount of premium paid

s

is the number of whole months in the unexpired portion of the period for which insurance was agreed to be provided

t

is the number of whole months for which insurance was agreed to be provided.

Example

A consumer credit insurance contract is financed under a consumer credit contract. The period for which insurance was agreed to be provided under the consumer credit insurance contract is 36 months and a premium of $500 is paid. Full prepayment of the consumer credit contract is made 18 months and 24 days after the commencement of the period for which insurance was agreed to be provided. Applying the above formula, the amount of the rebate of the consumer credit insurance contract premium is calculated as follows:

p = $500

s = 17 (36 months − 18 months and 24 days = 17 months and 6 days, which is 17 whole months)

t = 36

formula

The amount of the rebate of the premium is $114.86.

Rebate of repayment waiver

Heading: inserted, on 6 June 2015, by regulation 6 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

7A Rebate of repayment waiver

For the purposes of section 52A of the Act, the rebate for the repayment waiver must be calculated in accordance with the following formula:

y = (p × s × (s + 1)) ÷ (t × ( t + 1))

where—

y

is the amount of the rebate of the consideration paid for the repayment waiver

p

is the amount of the consideration paid for the repayment waiver

s

is the number of whole months in the unexpired portion of the period for which the repayment waiver applied

t

is the number of whole months for which the repayment waiver applied.

Regulation 7A: inserted, on 6 June 2015, by regulation 6 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

Rebate of extended warranty

Heading: inserted, on 6 June 2015, by regulation 6 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

7B Rebate of extended warranty

For the purposes of section 52B of the Act, the rebate for the extended warranty must be calculated in accordance with the following formula:

y = p × s ÷ t

where—

y

is the amount of the rebate of the consideration paid for the extended warranty

p

is the amount of the consideration paid for the extended warranty

s

is the number of whole months in the unexpired portion of the period for which the extended warranty applied

t

is the number of whole months for which the extended warranty applied.

Regulation 7B: inserted, on 6 June 2015, by regulation 6 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

Creditor’s loss arising from full prepayment

8 Application of regulation 9

Regulation 9 applies to a fixed rate contract if—

(a)

the contract has one fixed interest rate that is fixed for the whole term (whether or not the contract provides for default interest charges); and

(b)

the contract requires payments of equal amounts to be made at equal intervals; and

(c)

all the variables contained in the formula set out in regulation 9 can be determined with reasonable accuracy.

9 Calculation of reasonable estimate of creditor’s loss if interest rate fixed for whole term

(1)

For the purposes of section 54(1)(a) of the Act, a reasonable estimate of a creditor’s loss arising from a full prepayment of a fixed rate contract may be determined in accordance with the following formula:

LRE = VFPu

where—

LRE

is the reasonable estimate of the creditor’s loss arising from the full prepayment

VFP

is the value of forgone payments calculated in accordance with subclause (2)

u

is the unpaid balance at the time of the full prepayment.

(2)

The value of forgone payments is calculated in accordance with the following formula:

formula

where—

VFP

is the value of forgone payments

p

is the amount of each payment payable under the fixed rate contract

v

is calculated in accordance with subclause (3)

n

is the number of payments yet to be made under the fixed rate contract

f

is the number of payments to be made per year under the fixed rate contract

i

is the annual fixed interest rate determined in accordance with subclauses (4) and (5) and expressed as a decimal fraction

d

is the number of days between the payment due date that immediately precedes the date of full prepayment and the date of full prepayment.

(3)

The variable v is calculated in accordance with the following formula:

formula

where—

i

is the annual fixed interest rate determined in accordance with subclauses (4) and (5) and expressed as a decimal fraction

f

is the number of payments to be made per year under the fixed rate contract.

(4)

The annual fixed interest rate i is the annual fixed interest rate that at the date of full prepayment of the fixed rate contract the creditor usually offers on a fixed rate contract that—

(a)

is of the same or a similar type as the fixed rate contract that is to be fully prepaid; and

(b)

has a term that is—

(i)

equal to the unexpired portion of the term of the fixed rate contract that is to be fully prepaid; or

(ii)

closest to the unexpired portion of the term of the fixed rate contract that is to be fully prepaid, whether shorter or longer (if the creditor does not offer a fixed rate contract with a term equal to the unexpired portion of the term of the fixed rate contract that is to be fully prepaid).

(5)

If more than 1 annual fixed interest rate applies under subclause (4)(b)(ii), the annual fixed interest rate i is the higher or highest of those annual fixed interest rates.

(6)

If a reasonable estimate of a creditor’s loss arising from a full prepayment determined in accordance with the formula in subclause (1) is less than zero, then the reasonable estimate of that creditor’s loss arising from the full prepayment is zero.

Example

A debtor is advanced $5,000 under a fixed rate contract. The contract is for a term of 2 years. The annual interest rate for the whole term is 12%. Each of the 24 monthly payments is $235.37. Full prepayment of the contract is made after 6 months and 5 days (5 days since the last payment due date) when the unpaid balance is $3,865.66. At the date of full prepayment, the annual interest rate that the creditor usually charges on a fixed rate contract of the same or a similar type as the fixed rate contract that is to be fully prepaid with a term of 12 months is 10% (a 12-month fixed rate contract having an interest rate of 10% being closest in term to the 18-month unexpired portion of the term of the fixed rate contract that is to be fully prepaid). Applying the above formula, a reasonable estimate of the creditor’s loss arising from the full prepayment is calculated as follows:

p = $235.37

n = 18

f = 12

i = 0.1

d = 5

u = $3,865.66

formula

LRE = $3,924.23 − $3,865.66 = $58.57

A reasonable estimate of the creditor’s loss is $58.57.

If, however, in the above example the interest rate for fixed term contracts offered by the creditor for a term of 12 months was 15%, then variables v and VFP would be:

formula

LRE would then be calculated as follows:

LRE = $3,780.11 − $3,865.66 = − $85.55.

A reasonable estimate of the creditor’s loss in this case would be zero.

Note: For the purpose of this example only, calculations have been rounded to 9 decimal places.

10 Application of regulation 11

Regulation 11 applies to a fixed rate contract if—

(a)

the contract has a fixed interest period for part, but not the whole, of the term (whether or not the contract provides for default interest charges); and

(b)

the contract is fully prepaid during that fixed interest period; and

(c)

the contract requires payments of equal amounts to be made at equal intervals during that fixed interest period; and

(d)

all the variables contained in the formula set out in regulation 11 can be determined with reasonable accuracy.

11 Calculation of reasonable estimate of creditor’s loss if interest rate fixed for part of term

(1)

For the purposes of section 54(1)(a) of the Act, a reasonable estimate of a creditor’s loss arising from a full prepayment of a fixed rate contract may be determined in accordance with the following formula:

LRE = VFPu

where—

LRE

is the reasonable estimate of the creditor’s loss arising from the full prepayment

VFP

is the value of forgone payments calculated in accordance with subclause (2)

u

is the unpaid balance at the time of the full prepayment.

(2)

The value of forgone payments is calculated in accordance with the following formula:

formula

where—

VFP

is the value of forgone payments

p

is the amount of each payment payable under the fixed rate contract during the fixed interest period in which the contract is fully prepaid

v

is calculated in accordance with subclause (3)

n

is the number of payments yet to be made under the fixed rate contract during the fixed interest period in which the contract is fully prepaid

f

is the number of payments to be made per year under the fixed rate contract during the fixed interest period in which the contract is fully prepaid

i

is the annual fixed interest rate determined in accordance with subclauses (4) and (5) and expressed as a decimal fraction

d

is the number of days between the payment due date that immediately precedes the date of full prepayment and the date of full prepayment

EB

is the expected unpaid balance at the end of the fixed interest period in which the fixed rate contract is fully prepaid calculated in accordance with subclause (6).

(3)

The variable v is calculated in accordance with the following formula:

formula

where—

i

is the annual fixed interest rate determined in accordance with subclauses (4) and (5) and expressed as a decimal fraction

f

is the number of payments to be made per year under the fixed rate contract during the fixed interest period in which the contract is fully prepaid.

(4)

The annual fixed interest rate i is the annual fixed interest rate that at the date of full prepayment of the fixed rate contract the creditor usually offers on a fixed rate contract that—

(a)

is of the same or a similar type as the fixed rate contract that is to be fully prepaid; and

(b)

has a fixed interest period that is—

(i)

equal to the unexpired portion of the fixed interest period of the fixed rate contract that is to be fully prepaid; or

(ii)

closest to the unexpired portion of the fixed interest period of the fixed rate contract that is to be fully prepaid, whether shorter or longer (if the creditor does not offer a contract with a fixed interest period equal to the unexpired portion of the fixed interest period of the fixed rate contract that is to be fully prepaid).

(5)

If more than 1 annual fixed interest rate applies under subclause (4)(b)(ii), the annual fixed interest rate i is the higher or highest of those annual fixed interest rates.

(6)

The expected unpaid balance at the end of the fixed interest period is calculated in accordance with the following formula:

EB = u + ICTP

where—

EB

is the expected unpaid balance at the end of the fixed interest period in which the fixed rate contract is fully prepaid

u

is the unpaid balance at the time of the full prepayment

IC

is the total amount of the interest charges that would have been paid in accordance with the contract during the unexpired portion of the fixed interest period in which the fixed rate contract is fully prepaid

TP

is the total of all payments that would have been paid in accordance with the contract during the unexpired portion of the fixed interest period in which the fixed rate contract is fully prepaid.

(7)

If a reasonable estimate of a creditor’s loss arising from a full prepayment determined in accordance with the formula in subclause (1) is less than zero, then the reasonable estimate of that creditor’s loss arising from the full prepayment is zero.

Example

A debtor is advanced $5,000 under a fixed rate contract. The contract is for a term of 2 years. For the first year the interest rate is fixed at 12% and the 12 monthly payments are $235.37. For the remainder of the term a floating interest rate applies. Full prepayment of the contract is made after 6 months and 5 days (5 days since the last payment due date) when the unpaid balance is $3,865.66. At the date of full prepayment, the annual fixed interest rate that the creditor usually charges on a fixed rate contract of the same or a similar type as the fixed rate contract that is to be fully prepaid with a term of 6 months (6 months being the nearest term to the unexpired portion of the fixed interest period of the fixed rate contract that is to be fully prepaid) is 10%. During the unexpired portion of the fixed interest period of the fixed rate contract that is to be fully prepaid, total payments of $1,412.22 would have been payable ($235.37 x 6 months), including total interest charges of $195.67. Applying the above formula, a reasonable estimate of the creditor’s loss arising from the full prepayment is calculated as follows:

formula

A reasonable estimate of the creditor’s loss is $31.79.

Note: For the purpose of this example only, calculations have been rounded to 9 decimal places.

Regulation 11: substituted, on 1 April 2005, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

Model disclosure statements

Heading: added, on 1 April 2005, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

12 Model disclosure statements

For the purposes of section 34 of the Act—

(a)

the model disclosure statement that may be used for the disclosure of information under section 17(1) of the Act for a consumer credit contract other than a revolving credit contract is set out in form 1 of Schedule 2:

(b)

the model disclosure statement that may be used for the disclosure of information under section 17(1) of the Act for a revolving credit contract is set out in form 2 of Schedule 2:

(c)

the model disclosure statements in Schedule 2 must be used in accordance with regulations 13 to 16.

Regulation 12: added, on 1 April 2005, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

13 Terms and conditions for use of model disclosure statements

(1)

A model disclosure statement may be—

(a)

printed in any font and font size that is easily readable by a reasonable person:

(b)

printed in any colour or colours:

(c)

formatted with or without the use of borders or boxes around the text:

(d)

extended to provide sufficient space or lines in each box to enable completion of the required information in accordance with subclause (2).

(2)

A model disclosure statement must be completed by—

(a)

inserting in legible type or writing all of the information required by section 17(1) of the Act to be disclosed that is applicable to a particular consumer credit contract:

(b)

omitting any information (including any alternative information requirement) that is not applicable to the particular consumer credit contract, either by deleting that information from the model disclosure statement or by clearly striking through the space on the model disclosure statement for the disclosure of that information:

(c)

omitting the square brackets and the words in those square brackets that provide guidance for completion of the forms.

(3)

A model disclosure statement may not be completed by inserting the words “not applicable” to indicate that a requirement to disclose information is not applicable to a particular consumer credit contract.

Regulation 13: added, on 1 April 2005, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

14 Format and layout may not be modified

Except as provided in these regulations, the format and layout of a model disclosure statement may not be modified.

Regulation 14: added, on 1 April 2005, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

15 Other information

(1)

The following information may be included in a model disclosure statement in addition to the information that must otherwise be disclosed in accordance with the Act and these regulations:

(a)

the name and address of the debtor:

(b)

any name, logo, mark, design, or other information relating to the creditor if that information is included in a manner that is not likely to deceive or mislead a reasonable person or detract from the information that is required to be disclosed by the Act.

(2)

Except as provided in subclause (1), no other information may be included in a model disclosure statement.

Regulation 15: added, on 1 April 2005, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

16 Model disclosure statement may be divided into 2 parts

If a model disclosure statement is included as part of 1 or more documents, the model disclosure statement may be divided into no more than 2 parts with 1 part comprising only the statement relating to the debtor’s right to cancel under section 27 of the Act.

Regulation 16: added, on 1 April 2005, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

Other key information concerning consumer credit contract

Heading: added, on 1 April 2005, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

17 Other key information

(1)

For the purposes of paragraph (v) of Schedule 1 of the Act the information set out in subclause (2) is information that is key information concerning a consumer credit contract.

(2)

The information referred to in subclause (1) is a description of the credit fees that are, or may become, payable by the debtor to, or for the benefit of, the creditor in connection with the credit contract (unless the credit fee is disclosed under paragraph (c) or paragraph (n) of Schedule 1 of the Act), including—

(a)

when each of those credit fees is payable, if ascertainable; and

(b)

the amount of each of those credit fees if ascertainable, but, if not, the method of calculation of the fee.

Regulation 17: added, on 1 April 2005, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

Exemptions

Heading: inserted, on 6 June 2015, by regulation 7 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

18 Exemptions from provisions relating to consumer credit contracts where local authority to provide credit

(1)

A credit contract is exempt from the application of the provisions of the Act that are listed in subclause (2) if—

(a)

the contract provides for a local authority to provide credit in connection with the funding of an activity on a rating unit; and

(b)

the contract provides that the creditor is to collect the amounts payable under the contract to the creditor by means of a targeted rate on the rating unit.

(2)

The provisions of the Act referred to in subclause (1) are as follows:

(a)

section 18 (continuing disclosure):

(b)

section 38 (early debit or payment of interest charges prohibited):

(c)

section 41 (unreasonable credit fee or default fee) as it applies in relation to default fees:

(d)

section 51 (amount required for full prepayment):

(e)

subpart 8 of Part 2 (changes on grounds of unforeseen hardship).

(3)

The exemptions given by subclause (1) do not apply if—

(a)

a person other than a local authority is a creditor under the contract; or

(b)

credit is provided under the contract otherwise than in connection with the funding of the activity on the rating unit; or

(c)

the contract is a revolving credit contract.

(4)

The exemption given by subclause (1) from the application of section 18 of the Act is subject to the condition that the creditor complies with section 18(1) of the Act as if the maximum period for a continuing disclosure statement were 12 months.

(5)

The exemption given by subclause (1) from the application of subpart 8 of Part 2 of the Act applies only if—

(a)

the local authority that sets (or is to set) the targeted rate has a rates remission policy adopted under section 109 of the Local Government Act 2002 or a rates postponement policy adopted under section 110 of that Act; and

(b)

the objectives stated in the adopted policy in accordance with section 109(1)(a) or 110(1)(a) of the Local Government Act 2002 include—

(i)

an objective of assisting ratepayers whose ability to pay their rates is impaired because they are in financial difficulty; or

(ii)

an objective that is substantially the same as the objective referred to in subparagraph (i).

(6)

In this regulation,—

local authority has the meaning given by section 5 of the Local Government (Rating) Act 2002

rate has the meaning given by section 5 of the Local Government (Rating) Act 2002

ratepayers is to be read in accordance with section 10 of the Local Government (Rating) Act 2002

rating unit means a rating unit for the purposes of the Rating Valuations Act 1998

targeted rate means a rate set under section 16 of the Local Government (Rating) Act 2002.

(7)

This regulation applies only to credit contracts entered into on or after 6 June 2015.

Regulation 18: inserted, on 6 June 2015, by regulation 7 of the Credit Contracts and Consumer Finance Amendment Regulations 2015 (LI 2015/57).

18A Exemption from enforcement prohibition
[Revoked]

Regulation 18A: revoked, on 13 January 2020, by section 35 of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).

18B Exemptions from provisions relating to repossession of consumer goods in cases involving motor vehicles

(1)

This regulation applies to a credit contract if, in connection with the contract, there is a security interest in consumer goods that are or include a motor vehicle.

(2)

The credit contract is exempt from the application of section 83O(1)(c) of the Act in relation to the exercise of a right of entry of premises by a creditor or creditor’s agent for the purpose of repossessing the motor vehicle (and no other consumer goods), but only if the creditor or creditor’s agent holds a vehicle recovery authorisation.

(3)

The credit contract is exempt from the application of section 83P(2)(c) of the Act in relation to the entry onto any premises by a creditor or creditor’s agent for the purpose of repossessing the motor vehicle (and no other consumer goods), but—

(a)

only in relation to the document referred to in section 83O(1)(c) of the Act; and

(b)

only if the creditor or creditor’s agent holds a vehicle recovery authorisation and leaves a copy of that authorisation with the notice referred to in section 83P(2) of the Act.

(4)

The credit contract is exempt from the application of section 83T(2) of the Act in relation to a creditor authorising, allowing, or permitting a repossession agent or repossession employee to repossess (including by entering residential premises) the motor vehicle (and no other consumer goods), but only if the repossession agent or repossession employee holds a vehicle recovery authorisation.

(5)

The credit contract is exempt from the application of section 83T(3)(b) of the Act (including the application of the reference to section 83T(3)(b) in section 83T(4)) in relation to a repossession agent or repossession employee exercising any rights (including entering residential premises) in relation to repossessing the motor vehicle (and no other consumer goods), but only if the repossession agent or repossession employee holds a vehicle recovery authorisation.

(6)

The credit contract is exempt from the application of section 83T(4) of the Act in relation to a creditor personally entering residential premises for the purpose of repossessing the motor vehicle (and no other consumer goods), but only if the creditor holds a vehicle recovery authorisation.

(7)

In this regulation,—

motor vehicle

(a)

means a motor vehicle as defined in section 2(1) of the Land Transport Act 1998; but

(b)

does not include a moped, or a motorcycle, as defined in section 2(1) of that Act

vehicle recovery authorisation means—

(a)

a vehicle recovery service licence as defined in section 2(1) of the Land Transport Act 1998; or

(b)

a vehicle recovery endorsement under rule 33 of the Land Transport (Driver Licensing) Rule 1999.

(8)

Subclauses (2) to (6) are to be read in accordance with section 83B of the Act.

Regulation 18B: inserted, on 19 February 2016, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2016 (LI 2016/21).

Regulation 18B(3)(b): amended, on 19 August 2016, by regulation 5 of the Credit Contracts and Consumer Finance Amendment Regulations 2016 (LI 2016/21).

18C Exemptions from disclosure requirements for peer-to-peer lenders

(1)

Subclause (2) applies to a consumer credit contract if—

(a)

the contract is to be entered into by means of a licensed peer-to-peer lending service; and

(b)

a representative creditor under the contract complies with the creditor identification requirement in respect of that creditor (or more than 1 representative creditor does).

(2)

The contract is exempt from any other application of section 17 of the Act in relation to the creditor identification requirement (and, accordingly, no other creditor need comply with the requirement).

(3)

Subclause (4) applies to a consumer credit contract if—

(a)

the contract is, or is to be, entered into by means of a licensed peer-to-peer lending service; and

(b)

creditors under the contract take, or are to take, a guarantee of the contract; and

(c)

a representative creditor taking the guarantee complies with the creditor identification requirement in respect of that creditor (or more than 1 such representative creditor does).

(4)

The contract is exempt from any other application of section 25 of the Act in relation to the creditor identification requirement for the guarantee (and, accordingly, no creditor other than the representative creditor mentioned in subclause (3)(c) need comply with the requirement).

(5)

Subclause (6) applies to a consumer credit contract if—

(a)

the contract is entered into by means of a licensed peer-to-peer lending service; and

(b)

a creditor transfers rights under the contract to another creditor; and

(c)

neither of those creditors is a representative creditor.

(6)

The contract is exempt from the application of section 26A of the Act in respect of the transfer.

(7)

In this regulation,—

creditor identification requirement means the requirement under section 17 or 25 of the Act for a creditor to ensure the disclosure of information set out in paragraphs (a), (aa), (ua), (ub), and (uc) of Schedule 1 of the Act (creditor’s name, address, dispute resolution scheme details, and registration details)

licensed means licensed under section 390 of the Financial Markets Conduct Act 2013

peer-to-peer lending service has the same meaning as in regulation 185 of the Financial Markets Conduct Regulations 2014

representative creditor, in relation to a consumer credit contract entered into by means of a licensed peer-to-peer lending service, means a creditor under the contract—

(a)

who provides the service; or

(b)

who—

(i)

is introduced (directly or indirectly) by a provider of the service to each other creditor under the contract; and

(ii)

holds property or exercises rights under the contract for the benefit, or on behalf, of each other creditor.

Regulation 18C: inserted, on 15 March 2019, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations 2019 (LI 2019/53).

18D Exemptions for banks for COVID-19 from provisions relating to consumer credit contracts

(1)

A consumer credit contract is exempt from the application of the provisions of the Act that are listed in subclause (2) if—

(a)

a registered bank is the creditor or manages the contract in circumstances that relate to securitisation or covered bond arrangements or similar arrangements; and

(b)

the borrower is experiencing, or reasonably expects to experience, financial difficulties due to the economic or health effects of COVID-19; and

(c)

the contract is either—

(i)

an existing contract that is varied (or proposed to be varied) for the purpose of reducing those difficulties; or

(ii)

a replacement contract that is entered into (or proposed to be entered into) for the purpose of reducing those difficulties.

(2)

The provisions of the Act referred to in subclause (1) are as follows:

(a)

if an existing contract is being varied, section 9C(2)(a)(iii), but only to the extent that that provision may require the creditor to be satisfied that it is likely that the borrower will continue to make the payments under the agreement without suffering substantial hardship:

(b)

if the contract is a replacement contract, section 9C(3)(a)(ii) (lenders must make reasonable inquiries, before entering into the agreement with a borrower, so as to be satisfied that it is likely that the borrower will make the payments under the agreement without suffering substantial hardship):

(c)

sections 17, 22(2) and (4), and 26(3) to the extent of the time limits for making disclosure and giving or sending terms:

(d)

section 57A(1) (which relates to the obligations of creditors in relation to hardship applications).

(3)

The exemption from sections 17, 22(2) and (4), and 26(3) is subject to the condition that the registered bank must, as soon as is reasonably practicable, make the disclosure, and give or send the terms, required under the relevant section.

(4)

The exemption from section 57A(1) is subject to the condition that the registered bank must, as soon as is reasonably practicable after receiving an application for a change to the contract on grounds of unforeseen hardship,—

(a)

decide whether to agree to change the contract in accordance with the application; and

(b)

give the borrower the notice and summary required by section 57A(1)(c)(ii) and (iii) (that is, written notice of the decision and, if the creditor does not agree to change the contract in accordance with the application, written notice setting out the registered bank’s reasons for that decision and a clear summary of the borrower’s rights under section 58 of the Act).

(5)

In this regulation,—

borrower includes any debtor as that term is defined in the Act

registered bank has the same meaning as in section 2(1) of the Reserve Bank of New Zealand Act 1989

replacement contract means a contract (where a registered bank is the creditor or manages the contract in circumstances that relate to securitisation or covered bond arrangements or similar arrangements) with a borrower that replaces (in whole or in part) an existing contract—

(a)

with the same registered bank; or

(b)

that is managed by the same registered bank in any of those circumstances.

(6)

This regulation applies only to consumer credit contracts entered into or varied on or before the close of 31 October 2020.

Regulation 18D: inserted, on 1 April 2020, by regulation 4 of the Credit Contracts and Consumer Finance (Exemptions for COVID-19) Amendment Regulations 2020 (LI 2020/55).

Regulation 18D heading: amended, on 13 May 2020, by regulation 4 of the Credit Contracts and Consumer Finance (Exemptions for COVID-19) Amendment Regulations (No 2) 2020 (LI 2020/83).

18E Exemptions for non-bank lenders for COVID-19 from provisions relating to consumer credit contracts

(1)

A consumer credit contract is exempt from the application of the provisions of the Act that are listed in subclause (2) if—

(a)

a non-bank lender is the creditor or manages the contract in circumstances that relate to securitisation or covered bond arrangements or similar arrangements; and

(b)

the non-bank lender is not a mobile trader; and

(c)

the debtor is experiencing, or reasonably expects to experience, financial difficulties due to the economic or health effects of COVID-19; and

(d)

the contract is either—

(i)

an existing contract that is varied (or proposed to be varied) for the purpose of reducing those difficulties; or

(ii)

a replacement contract that is entered into (or proposed to be entered into) for the purpose of reducing those difficulties; and

(e)

the contract is not a high-cost consumer credit contract.

(2)

The provisions of the Act referred to in subclause (1) are sections 17, 22(2) and (4), and 26(3) to the extent of the time limits for making disclosure and giving or sending terms.

(3)

The exemptions are subject to the condition that the non-bank lender must, as soon as is reasonably practicable, make the disclosure, and give or send the terms, required under the relevant section.

(4)

In this regulation,—

non-bank lender means a person who is not a registered bank as defined in section 2(1) of the Reserve Bank of New Zealand Act 1989

replacement contract means a contract (where a non-bank lender is the creditor or manages the contract in circumstances that relate to securitisation or covered bond arrangements or similar arrangements) with a debtor that replaces (in whole or in part) an existing contract—

(a)

with the same non-bank lender; or

(b)

that is managed by the same non-bank lender in any of those circumstances.

(5)

This regulation applies only to consumer credit contracts entered into or varied on or before the close of 31 October 2020.

Regulation 18E: inserted, on 13 May 2020, by regulation 5 of the Credit Contracts and Consumer Finance (Exemptions for COVID-19) Amendment Regulations (No 2) 2020 (LI 2020/83).

18F Exemption for credit under residential earthquake-prone building financial assistance scheme

(1)

A credit contract is exempt from being a consumer credit contract if the credit is provided by Kāinga Ora (as creditor) under the REPB scheme.

(2)

However, the contract is exempt only if Kāinga Ora complies with the following conditions:

(a)

the terms of the credit contract must be expressed in plain language in a clear, concise, and intelligible manner:

(b)

Kāinga Ora must ensure that, before the contract is entered into,—

(i)

disclosure of the initial disclosure information (set out in subclause (3)) is made to every debtor; and

(ii)

a copy of all of the terms of the contract not disclosed under subparagraph (i) (other than terms implied by law) is given or sent to every debtor:

(c)

Kāinga Ora must ensure that disclosure of the continuing disclosure information (set out in subclause (4)) is made in a continuous disclosure statement given to the debtor at least once every 6 months (unless subclause (6) applies):

(d)

the disclosures required by paragraphs (b) and (c) must be made in accordance with sections 32 to 35 of the Act (except section 32(1)(b)) (which apply as if the contract were a consumer credit contract).

(3)

The initial disclosure information is as much of the following as is applicable to the contract:

Full name and address of creditor

(a)

the full name and full address of the creditor:

(b)

the trading name of the creditor (if different from its full name specified under paragraph (a)):

Total advances

(c)

the total of all advances made or to be made in connection with the contract, if ascertainable:

Annual interest rate

(d)

the annual interest rate or rates under the contract (with the rate or rates being expressed in terms of a percentage):

(e)

if there is more than 1 rate, how each rate applies:

(f)

if an annual interest rate is fixed for the term or any part of the term of the contract, the period during which the annual interest rate is fixed:

(g)

if an annual interest rate is determined by referring to a base rate, particulars that describe how the annual interest rate is determined, including—

(i)

the name of the base rate or a description of it; and

(ii)

the margin or margins (if any) above or below the base rate to be applied to determine the annual interest rate; and

(iii)

where and when the base rate is published or, if it is not published, how the debtor may ascertain the rate; and

(iv)

the current annual interest rate or rates:

Method of charging interest

(h)

the method of calculating interest charges payable under the contract and the frequency with which interest charges are debited under the contract:

Interest free period

(i)

if the contract involves an interest free period, the following particulars:

(i)

the length of the interest free period:

(ii)

when interest will begin to accrue:

Credit fees and charges

(j)

a description of the credit fees and charges (other than interest charges) that are, or may become, payable under the contract, including—

(i)

when each fee or charge is payable, if ascertainable; and

(ii)

the amount of each fee or charge if ascertainable, but, if not, the method of calculation of the fee or charge:

Full prepayment

(k)

how the reasonable estimate of the creditor’s loss on full prepayment is calculated and whether a statutory procedure prescribed in regulations is used:

Security interest

(l)

a description of any security interest that is or may be taken in connection with the contract, including a clear explanation of—

(i)

the nature of the security interest; and

(ii)

the property that is, or is proposed to be, subject to the security interest; and

(iii)

the extent to which the debtor’s obligations to the creditor are secured by the security interest, including whether, if the creditor’s rights under the security were to be exercised, the debtor would, or may, remain indebted to the creditor (if there is a shortfall in the proceeds of the sale of the property that is subject to the security interest); and

(iv)

what the consequences would be if the debtor were to give a security interest over the property referred to in subparagraph (ii) to a person other than the creditor and, as a result, the debtor were to be in breach of the contract, including whether the property that would be subject to the security interest would be liable to repossession:

Default interest charges and default fees

(m)

particulars that describe any default interest charges and default fees that may be payable under the contract including how and when default interest charges and default fees would become payable:

Continuing disclosure statements

(n)

the frequency with which continuing disclosure statements will be provided (unless subclause (6) applies):

Consent to electronic communications

(o)

if the creditor consents to receive notices or other communications from the debtor in electronic form, whether by means of an electronic communication or otherwise, a statement to that effect.

(4)

The continuing disclosure information is as much of the following as is applicable to the contract:

(a)

the opening and closing dates of the period covered by the statement:

(b)

the opening and closing unpaid balances:

(c)

the date, amount, and a description of each advance during the statement period:

(d)

the date and amount of each interest charge debited to the debtor’s account during the statement period:

(e)

the date and amount of each amount paid by the debtor to the creditor, or credited to the debtor, during the statement period:

(f)

the date, amount, and a description of each fee or charge debited to the debtor’s account during the statement period:

(g)

the annual interest rate or rates during the statement period (expressed as a percentage or percentages).

(5)

The opening unpaid balance (referred to in subclause (4)(b)) for a statement period must not exceed the closing unpaid balance shown in the previous statement.

(6)

Disclosure to a debtor under subclause (2)(c)—

(a)

is not required if—

(i)

Kāinga Ora maintains (at all reasonable times) a website that allows the debtor to access the continuing disclosure information for any reasonable statement period specified by the debtor; and

(ii)

the debtor consents to the information being disclosed in that way; and

(b)

is not required in relation to a particular period if,—

(i)

Kāinga Ora cannot reasonably locate the debtor; or

(ii)

during that period,—

(A)

there have been no debits or credits to the debtor’s account and the unpaid balance is nil; or

(B)

Kāinga Ora has written off the unpaid balance and there are no subsequent credits or debits to the debtor’s account; or

(C)

the debtor has breached the contract and Kāinga Ora has commenced enforcement proceedings; or

(D)

the debtor has been declared bankrupt or died and the Official Assignee or executors or trustees or administrator of the debtor’s estate have not requested a continuing disclosure statement.

(7)

If, in accordance with subclause (6), disclosure has not been made in relation to a particular period, the next disclosure that is made under subclause (2)(c) must cover every immediately preceding period for which disclosure was not made.

(8)

In this regulation,—

Kāinga Ora means Kāinga Ora–Homes and Communities established by section 8 of the Kāinga Ora–Homes and Communities Act 2019 (or, if that body is replaced as the creditor under the REPB scheme, the replacement creditor)

REPB scheme means the residential earthquake-prone building financial assistance scheme established by the Government (as announced in the 2019/20 Budget and as varied from time to time) to provide financial assistance to certain persons—

(a)

who own and occupy earthquake-prone household units in areas of high seismic risk (as defined in section 133AD of the Building Act 2004); and

(b)

who are required under subpart 6A of Part 2 of that Act to carry out seismic work; and

(c)

for whom doing so would cause significant financial hardship.

Regulation 18F: inserted, on 3 September 2020, by regulation 4 of the Credit Contracts and Consumer Finance (Residential Earthquake-prone Building Financial Assistance Scheme) Amendment Regulations 2020 (LI 2020/183).

Regulation 18F(2)(d): amended, on 3 September 2020, by regulation 7 of the Credit Contracts and Consumer Finance Amendment Regulations 2020 (LI 2020/205).

Other circumstances in which section 26A of Act (disclosure of transfer of rights of creditor) not to apply

Heading: inserted, on 6 June 2015, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015 (LI 2015/82).

Heading: amended, on 15 March 2019, by regulation 5 of the Credit Contracts and Consumer Finance Amendment Regulations 2019 (LI 2019/53).

19 Section 26A of Act not to apply if transfer made for purposes of securitisation or covered bond arrangements or similar arrangements

(1)

For the purposes of section 26A(3) of the Act, section 26A of the Act does not apply in the case of a transfer of the kind referred to in section 26A(1) of the Act if—

(a)

the transfer is made for the purposes of securitisation or covered bond arrangements or similar arrangements; and

(b)

regulation 20 or 21 applies.

(2)

In this regulation and regulations 20 and 21,—

debtor means a debtor under the relevant contract

disclosure deadline means the end of the period of 10 working days referred to in section 26A(2) of the Act

guarantee means a guarantee in relation to the relevant contract

guarantor means a guarantor in relation to the relevant contract

new creditor means the person to whom the transfer is made

payment means a payment—

(a)

under the relevant contract by a debtor; or

(b)

under a guarantee by a guarantor

relevant contract means the consumer credit contract to which the transfer relates.

Regulation 19: inserted, on 6 June 2015, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015 (LI 2015/82).

20 Contract manager appointed by new creditor

(1)

This regulation applies if—

(a)

conditions A to D are met; and

(b)

condition E is met, subject to subclause (7).

(2)

Condition A is that, at the disclosure deadline, there is a contract (the management contract) between the new creditor and another person (the contract manager) that provides for the contract manager, during the period after the disclosure deadline until the end of the term of the management contract or until that contract ends in some other way,—

(a)

to collect all payments from every debtor and guarantor; and

(b)

otherwise to manage the relevant contract and every guarantee; and

(c)

to deal with every debtor and guarantor for those purposes accordingly.

(3)

Condition B is that, no later than the disclosure deadline, the contract manager’s name, address, and other contact details are disclosed to every debtor and guarantor.

(4)

Condition C is that,—

(a)

immediately before the transfer takes effect, the contract manager is already performing the role referred to in subclause (2)(a) to (c) (as a creditor under the relevant contract or under a contract with such a creditor); or

(b)

no later than the disclosure deadline, every debtor and guarantor is advised of the contract manager’s role as referred to in subclause (2)(a) to (c).

(5)

Condition D is that,—

(a)

at the disclosure deadline, the contract manager—

(i)

is registered under the register of financial service providers; and

(ii)

is a member of a dispute resolution scheme; and

(b)

at the disclosure deadline,—

(i)

the contract manager is a creditor under the relevant contract; or

(ii)

the rules of the scheme referred to in paragraph (a)(ii) relating to complaints about its members apply in relation to the contract manager (whether by virtue of a provision of the rules themselves or by virtue of other arrangements)—

(A)

as if the contract manager were the creditor under the relevant contract; and

(B)

so that the scheme must accept for resolution, and the contract manager is bound by the resolution of, complaints on that basis accordingly.

(6)

Condition E is that, no later than the disclosure deadline, the following information is disclosed to every debtor and guarantor:

(a)

the contract manager’s registration number under the register of financial service providers and the name under which the contract manager is registered under that register:

(b)

the name and contact details of the dispute resolution scheme of which the contract manager is a member.

(7)

Condition E does not have to be met if—

(a)

the relevant contract is entered into before 6 June 2015; and

(b)

subclause (4)(a) applies.

Regulation 20: inserted, on 6 June 2015, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015 (LI 2015/82).

21 New creditor was contract manager before transfer

(1)

This regulation applies if—

(a)

conditions A and B are met; and

(b)

condition C is met, subject to subclause (5).

(2)

Condition A is that, immediately before the transfer takes effect, the new creditor (under a contract with a person who is a creditor under the relevant contract)—

(a)

is collecting all payments from every debtor and guarantor; and

(b)

is otherwise managing the relevant contract and every guarantee; and

(c)

is dealing with every debtor and guarantor for those purposes accordingly.

(3)

Condition B is that, no later than the disclosure deadline, the new creditor’s name, address, and other contact details are disclosed to every debtor and guarantor.

(4)

Condition C is that, no later than the disclosure deadline, the following information is disclosed to every debtor and guarantor:

(a)

the new creditor’s registration number under the register of financial service providers and the name under which the new creditor is registered under that register:

(b)

the name and contact details of the dispute resolution scheme of which the new creditor is a member.

(5)

Condition C does not have to be met if the relevant contract is entered into before 6 June 2015.

Regulation 21: inserted, on 6 June 2015, by regulation 4 of the Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015 (LI 2015/82).

Schedule 1 Assumptions that may be used or applied when disclosing information under Act

r 6

Schedule 1 number: added, on 1 April 2005, by regulation 5 of the Credit Contracts and Consumer Finance Amendment Regulations 2004 (SR 2004/359).

1 Interest charges and payments

In disclosing the information referred to in paragraphs (k), (l), and (o) of Schedule 1 of the Act, the creditor may assume—

(a)

that, in the case of an annual interest rate, the rate disclosed will not vary over the term of the credit contract or any shorter period for which it applies; and

(b)

that, in the case of a variable interest rate, the variable interest rate applicable over the period for which it applies is the same as the equivalent variable interest rate as at the date that the disclosure statement is prepared; and

(c)

that the debtor will make payments required by the credit contract at the times required by the credit contract and of the amounts required under the contract.

2 Business day

Disclosure relating to payments, charges, or fees may be made on the assumption that every day is a business day.

3 Charges and fees

Disclosures relating to charges (other than interest charges) and fees may be made on the following assumptions:

(a)

that there will be no change in the charges and fees as disclosed and no new fees or charges imposed; and

(b)

that the charges and fees will be paid by the debtor at the times required by the credit contract and of the amounts required under the contract.

4 Date of advance being made

If disclosure involves an advance being made under the credit contract on a certain date and that date is not ascertainable at the time the disclosure statement is prepared, disclosure may be made on the assumption that the advance is made on a date specified in the disclosure statement as being the date on which the advance is most likely to be made.

Schedule 2 Model disclosure statements

r 12

Schedule 2: replaced, on 28 August 2015, by regulation 5 of the Credit Contracts and Consumer Finance Amendment Regulations (No 3) 2015 (LI 2015/181).

Form 1

Disclosure Statement for Consumer Credit Contracts (other than revolving credit contracts) Page 1 of 5
Disclosure Statement for Consumer Credit Contracts (other than revolving credit contracts) Page 2 of 5
Disclosure Statement for Consumer Credit Contracts (other than revolving credit contracts) Page 3 of 5
Disclosure Statement for Consumer Credit Contracts (other than revolving credit contracts) Page 4 of 5
Disclosure Statement for Consumer Credit Contracts (other than revolving credit contracts) Page 5 of 5

Form 2

Disclosure Statement for Revolving Credit Contracts Page 1 of 4
Disclosure Statement for Revolving Credit Contracts Page 2 of 4
Disclosure Statement for Revolving Credit Contracts Page 3 of 4
Disclosure Statement for Revolving Credit Contracts Page 4 of 4

Diane Morcom,
Clerk of the Executive Council.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 12 August 2004.

Reprints notes
1 General

This is a reprint of the Credit Contracts and Consumer Finance Regulations 2004 that incorporates all the amendments to those regulations as at the date of the last amendment to them.

2 Legal status

Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official electronic version also has official status.

3 Editorial and format changes

Editorial and format changes to reprints are made using the powers under sections 24 to 26 of the Legislation Act 2012. See also http://www.pco.parliament.govt.nz/editorial-conventions/.