This note is not part of the regulations, but is intended to indicate their general effect.
The exemptions apply only if the consumer goods being repossessed are a motor vehicle and the creditor or creditor’s agent carrying out the repossession holds a vehicle recovery service licence under the Land Transport Act 1998 or a vehicle recovery endorsement under rule 33 of the Land Transport (Driver Licensing) Rule 1999.
Statement of reasons
The following statement of reasons is published for the purposes of section 138(1B) of the Credit Contracts and Consumer Finance Act 2003.
The Minister of Commerce and Consumer Affairs, having had regard to the purposes of the Credit Contracts and Consumer Finance Act 2003 set out in section 3 of that Act as required by section 138(1A)(a) of that Act, and being satisfied as to the matters set out in section 138(1A)(b) and (c)(ii) of that Act, considers the exemptions given by new regulation 18B to be appropriate because—
the provisions of the Act from which the exemptions are given overlap with equivalent requirements that vehicle recovery services are subject to under land transport legislation; and
exempting the credit contracts set out in new regulation 18B(1) from these provisions will not cause detriment to debtors as land transport legislation requires a vehicle recovery authorisation to be obtained, which provides sufficient protection for debtors, and ensures that vehicle recovery services are appropriately regulated; and
requiring vehicle recovery service providers to comply with the overlapping requirements of the Act and land transport legislation would impose onerous and burdensome requirements on creditors, as creditors would have to engage vehicle recovery services that are licensed under 2 legislative regimes, resulting in unnecessary compliance costs being passed on to creditors and debtors; and
accordingly, the purposes of the Act to protect the interests of consumers, to promote confident and informed participation of consumers in markets for credit, and to promote fair, efficient, and transparent markets for credit will continue to be met.
Date of notification in Gazette: 18 February 2016.
These regulations are administered by the Ministry of Business, Innovation, and Employment.