Credit (Repossession) Act 1997

  • not the latest version

Reprint as at 1 June 2005

Credit (Repossession) Act 1997

Public Act1997 No 85
Date of assent14 November 1997
Commencementsee section 1(2)


Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

This Act is administered by the Ministry of Consumer Affairs.



1 Short Title and commencement

Part 1

2 Interpretation

3 Act binds the Crown

4 Purpose of this Act

5 Security agreements to which Act applies

6 Act applies where creditor already has right to take possession, etc

Part 2
Rules that apply before possession of goods is taken

7 Circumstances in which creditor can take possession

8 Notice to be given to debtor and guarantor before taking possession of consumer goods

9 Form of pre-possession notice

10 Creditor must allow time to remedy default

11 Offences against this Part

12 Debtor may apply to court for relief

13 Court may grant relief

Part 3
Right of entry

14 Creditor must not enter premises in unreasonable manner

15 Creditor must not enter residential premises at prohibited time

16 Certain persons disqualified from taking possession of consumer goods

17 Documents to be produced on entry

18 Entry if occupier not present

19 Offence to obstruct taking possession of consumer goods

Part 3A
Rules that apply in relation to taking possession of accessions

19A Interpretation

19B Creditor must not damage consumer goods when removing accession

19C Person with interest in other goods entitled to reimbursement for damage caused by removal of accession

19D Person entitled to reimbursement may refuse permission to remove accession

19E Secured party may apply to court for order in respect of removal of accession

19F Secured party must give notice of removal of accession

19G When person with interest in whole may retain accession

19H Court may make order concerning removal of accession

Part 4
Rules that apply after possession of goods is taken

20 Notice to be given to debtor and guarantor after taking possession of consumer goods

21 Form of post-possession notice

21A Notice of sale of consumer goods to other creditors

22 Consequences of not giving post-possession notice

23 Creditor must not sell consumer goods until 15 days after post-possession notice

24 Consequences of selling within 15 days of post-possession notice

25 Creditor must sell consumer goods 15 days after post-possession notice

26 Rules relating to sale by creditor

27 Debtor may obtain valuation of consumer goods before sale

28 Debtor’s right to reinstate agreement

29 Consequences of reinstating agreement

30 Debtor’s right to introduce buyer

31 Debtor’s right to settle agreement

32 Debtor’s right to force sale

32A Disposal of consumer goods to purchaser for value and in good faith

32B Extinguishment of subordinate security interests on sale

33 Creditor to give statement of account to debtor

34 Distribution of surplus

34A Surplus may be paid into court

34B Debtor’s, etc, right to recover surplus

35 Limit on creditor’s right to recover from debtor

36 Court may vary existing judgments or orders when consumer goods are repossessed

36A Voluntary return of goods

36B Various effects of voluntary return of goods

Part 5
Miscellaneous provisions

37 Power of court to extend times

38 Service of notices

39 Jurisdiction of District Courts

40 Jurisdiction of Disputes Tribunals

41 Offences to be punishable on summary conviction

42 No contracting out

43 Application of law relating to illegal contracts

44 Power to amend forms

Part 6
Amendments to other enactments

45 Amendments to Chattels Transfer Act 1924 [Repealed]

46 Amendment to Insolvency Act 1967

47 Amendments to Hire Purchase Act 1971 [Repealed]

48 Amendment to Credit Contracts Act 1981 [Repealed]

49 Amendment to Disputes Tribunals Act 1988

50 Amendments to Income Tax Act 1994 [Repealed]

51 Transitional provision relating to existing hire purchase agreements

Schedule 1
Pre-possession notice

Schedule 2
Post-possession notice

Reprint notes

An Act to govern the taking of possession of consumer goods by a creditor under a security agreement

  • Title: substituted, on 1 May 2002, by section 2 of the Credit (Repossession) Amendment Act 1999 (1999 No 127).