Credit Contracts and Consumer Finance Act 2003

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Reprint as at 8 September 2018

Credit Contracts and Consumer Finance Act 2003

Public Act		2003 No 52
Date of assent		13 October 2003
Commencement		see section 2

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.

This Act is administered by the Ministry of Business, Innovation, and Employment.

1	Title
	Part 1 Preliminary provisions
2	Commencement
3	Purposes
4	Overview
5	Interpretation
6	Meaning of credit
7	Meaning of credit contract
8	Meaning of buy-back transaction
8A	Meanings of associated and associated person
8B	Provisions affecting application of amendments to this Act
9	Act binds the Crown
	Part 1A Lender responsibilities
9A	Outline of Part
	Interpretation
9B	Interpretation
	Principles
9C	Lender responsibility principles
9D	Proceedings for breach of legal obligations under other Acts
	Responsible Lending Code
9E	Purpose of Responsible Lending Code
9F	Content of Responsible Lending Code
	How Responsible Lending Code made and administered
9G	Preparation and issue of Responsible Lending Code
9H	Responsible Lending Code comes into force by notice in Gazette
9I	Amendment of Responsible Lending Code
	Publication of standard form contract terms and costs of borrowing
9J	Publication of standard form contract terms
9K	Publication of costs of borrowing
9L	Extended meaning of business premises
	Part 2 Consumer credit contracts
	Subpart 1—Application
10	When this Part applies
11	Meaning of consumer credit contract
12	Investment purposes
13	Presumption relating to consumer credit contract
14	Effect of declaration
15	Certain contracts not consumer credit contracts
15A	Part does not apply to pawnbroking contract
16	Lease of goods treated as consumer credit contract
	Subpart 2—Required disclosure
	Initial disclosure
17	Initial disclosure
	Continuing disclosure
18	Continuing disclosure
19	Content of continuing disclosure statement
20	Opening unpaid balance must not exceed closing unpaid balance of previous continuing disclosure statement
21	Continuing disclosure not required
	Variation disclosure
22	Disclosure of agreed changes
23	Disclosure of changes following exercise of power
	Request and guarantee disclosure
24	Request disclosure
25	Disclosure of guarantee
26	Disclosure of changes to guarantors
26A	Disclosure of transfer of rights of creditor under consumer credit contract
	Subpart 3—Debtor’s right to cancel
27	Right to cancel consumer credit contract
28	Notice of cancellation, return of property, and payment of cash price
29	Right of cancellation does not apply in certain situations
30	Effect of cancellation
31	Effect of credit sale cancellation
	Subpart 4—Disclosure standards and how disclosure is made
32	Disclosure standards
33	Assumptions
34	Creditor, etc, may voluntarily use model disclosure statement if not required to use mandatory form
35	How disclosure is made
	Subpart 5—Interest charges
36	End of day
37	Creditor to ensure that contract specifies annual interest rate or rates
38	Early debit or payment of interest charges prohibited
39	Limit on interest charges
40	Default interest charges
	Subpart 6—Fees
	Unreasonable fees
41	Unreasonable credit fee or default fee
42	Establishment fees
43	Prepayment fees
44	Credit fees other than establishment fees and prepayment fees
44A	Default fees
44B	Compliance with Code is evidence that fees are not unreasonable
	Fees or charges passed on by creditor
45	Fees or charges passed on by creditor
	Subpart 7—Payments
46	Crediting of payments
47	Dating and adjustments of debits and credits in accounts
48	Recovery of payments
	Prepayments
49	Part prepayments
50	Debtor’s right to full prepayment
51	Amount required for full prepayment
52	Rebate of insurance
52A	Rebate of repayment waiver
52B	Rebate of extended warranty
53	Termination of consumer credit insurance contract
54	Creditor’s loss arising from full prepayment
	Subpart 8—Changes on grounds of unforeseen hardship
55	Changes on grounds of unforeseen hardship
56	Changes that can be made
57	Application may not be made in certain circumstances
57A	Obligations of creditor in relation to application
58	Changes by court
59	Creditor may apply for variation of change
59A	How notices may be given
	Part 3 Consumer leases, credit-related insurance, and buy-back transactions of land
	Subpart 1—Consumer leases
60	Consumer leases
61	Presumption relating to consumer lease
62	Declaration concerning consumer lease
	Disclosure of consumer lease
63	Application of disclosure provisions
64	Initial disclosure of consumer lease
65	Variation disclosure of consumer leases
66	Variation disclosure not required [Repealed]
67	Request disclosure for consumer leases
	Amount payable on termination
68	Amount payable on termination
	Subpart 2—Credit-related insurance, repayment waivers, and extended warranties
69	Restrictions on credit-related insurance, repayment waivers, and extended warranties
70	Disclosure of credit-related insurance, repayment waiver, or extended warranty
	Subpart 3—Buy-back transactions of land
71	Application of disclosure provisions
72	Initial disclosure of buy-back transaction
73	Independent legal advice must be given to occupier
74	Buy-back transactions involving buy-back promoter
75	Land cannot be dealt with without leave of court if initial disclosure not made or no independent legal advice given
76	Interest of occupier is caveatable interest
77	Variation disclosure of buy-back transactions
78	Variation disclosure not required [Repealed]
79	Request disclosure for buy-back transactions
80	Unreasonable buy-back fees or buy-back default fees
81	Fees or charges passed on by transferee
82	Unreasonable fees payable to buy-back promoter or associated person
83	No limit on Part 2
	Part 3A Repossession of consumer goods under credit contract
	Subpart 1—Preliminary provisions
83A	Outline of Part
83B	References to credit contracts include security agreements
83C	Application of Part
83D	Part does not create right to repossess, etc
	Subpart 2—Rules that apply before repossession
83E	Circumstances in which creditor can repossess consumer goods
83F	Duty to ensure goods are specifically identified
83G	Creditor must serve repossession warning notice on debtor and other persons before taking possession of consumer goods
83H	Debtor may voluntarily deliver consumer goods
83I	Rules relating to accessions (goods that are installed in, or affixed to, other goods)
83J	Effect of debtor’s complaint or application on grounds of unforeseen hardship on creditor’s rights to enforce credit contract
83K	Subsequent complaints
	Subpart 3—Disabling devices
83L	Use of disabling device
83M	Connection or use of disabling device in connection with certain goods prohibited
	Subpart 4—Rules that apply at time of repossession
83N	Creditor must allow debtor time to remedy default or at least 15 days to elapse
83O	Documents to be produced on entry
83P	Entry if occupier not present
83Q	Creditor must exercise right to enter premises in accordance with lender responsibility principles
83R	Creditor must not enter premises if complaint not resolved or unforeseen hardship application not decided
83S	Creditor must not enter residential premises at certain times
83T	Restrictions applying in relation to persons repossessing consumer goods
	Subpart 5—Rules that apply after repossession of consumer goods
83U	Interpretation
83V	Notice to be given to debtor, guarantor, and other creditors after repossession of consumer goods
83W	Creditor must not sell consumer goods until 15 days after post-repossession notice
83X	Consequences of selling within 15 days of post-repossession notice
83Y	Creditor must offer consumer goods for sale
83Z	Rules relating to sale by creditor
83ZA	Debtor may obtain valuation of consumer goods before sale
83ZB	Debtor’s right to reinstate credit contract
83ZC	Consequences of reinstating credit contract
83ZD	Debtor’s right to introduce buyer
83ZE	Debtor’s right to settle credit contract
83ZF	Debtor’s right to force sale
83ZG	Disposal of consumer goods to purchaser for value and in good faith
83ZH	Extinguishment of creditor’s security interest and subordinate security interests on sale
83ZI	Creditor to give statement of account to debtor, guarantor, and other interested persons
83ZJ	Distribution of surplus
83ZK	Surplus may be paid into court
83ZL	Debtor’s, etc, right to recover surplus
83ZM	Limit on creditor’s right to recover from debtor
	Subpart 6—Prohibitions relating to security interest over certain consumer goods
83ZN	Credit contract may not provide for security interest over certain consumer goods
83ZO	Contravening provision of no effect
83ZP	Exclusion for fixtures
	Subpart 7—Miscellaneous provisions
83ZQ	Service of notices
83ZR	Part does not limit application of rules relating to conduct of servants or agents
	Part 4 Enforcement and remedies
	Subpart 1—Preliminary provisions
84	Compliance programmes
	Jurisdiction
85	Jurisdiction of High Court
86	Jurisdiction of District Court
87	Jurisdiction of Disputes Tribunal
87A	Jurisdiction of dispute resolution schemes
	Subpart 2—Statutory damages
88	Creditors, creditors’ agents, lessors, transferees, and buy-back promoters liable for statutory damages
89	Amount of statutory damages
90	Enforcement of statutory damages
91	Court may reduce statutory damages
92	Guidelines for reducing statutory damages
	Subpart 3—Orders, injunctions, and prohibited enforcement
	Court’s general power to make orders
93	Court’s general power to make orders
94	Court orders
94A	Court orders in relation to repossessions
95	Miscellaneous provisions concerning court’s general power to make orders
	Injunctions
96	Injunctions
97	Injunctions restraining conduct of particular kind
98	Interim injunction
	Prohibited enforcement
99	Enforcement of consumer credit contract prohibited
99A	Enforcement of rights of repossession, etc, prohibited
99B	Enforcement prohibited if creditor unregistered
100	Enforcement of guarantee prohibited
101	Enforcement of consumer lease prohibited
102	Enforcement of buy-back transaction prohibited
	Subpart 4—Offences
102A	Infringement offences
103	Other offences
104	Conviction for 2 or more offences
105	When proceedings may be commenced
105A	Infringement fee, etc, defined
105B	Infringement offence alleged
105C	Issue of infringement notice
105D	Procedural requirements for infringement notices
105E	What Commission does with infringement fees
105F	Regulations relating to infringement offences
	Subpart 5—Defence
106	Reasonable mistake defence
107	Relevance of compliance programme
	Subpart 6—Prohibition on certain creditors, lessors, transferees, and buy-back promoters
108	Power to order certain persons not to act as creditors, lessors, transferees, or buy-back promoters
109	Who may apply and nature of order
110	Costs
	Subpart 7—Application of Commerce Act 1986 and provisions relating to Commerce Commission
111	Role and functions of Commission under this Act
112	Commission’s rights to appear and adduce evidence
113	Application of Commerce Act 1986
114	Additional proceedings
115	Disposal of things seized
116	Court order for disposal of things seized to be suspended on conviction
	Part 5 Reopening of oppressive credit contracts, consumer leases, and buy-back transactions
117	Application of Part
118	Meaning of oppressive
119	Collateral contracts and linked transactions
120	Reopening of credit contracts, consumer leases, and buy-back transactions
121	Refusal to agree to early termination, variation, or waiver
122	Reopening credit contracts involved in arrangement
123	Time and circumstances relevant to reopening credit contracts, consumer leases, or buy-back transactions
124	Guidelines for reopening credit contracts, consumer leases, and buy-back transactions
125	When reopening proceedings may be commenced
126	Evidence
127	Power of court on reopening credit contract, consumer lease, or buy-back transaction
128	Costs in consumer cases
129	Persons who share in profits or have beneficial interest in reopened credit contract, consumer lease, or buy-back transaction
130	Time of exercise of court’s powers
131	No limit on sections 41, 80, and 82
	Part 6 Miscellaneous provisions
132	Provisions relating to assignment of credit contracts, consumer leases, or buy-back transactions
133	Changes, deferrals, or postponements under credit contracts and consumer leases
134	Right to set-off
135	No contracting out
136	Application of law relating to illegal contracts
137	Conflict of laws
	Regulations
138	Regulations
	Acts amended and repealed
139	Acts amended
140	Repeal of Credit Contracts Act 1981 and Hire Purchase Act 1971
	Transitional provisions
141	Transitional provision
141A	Application, savings, and transitional provisions relating to amendments to Act
142	Election for Act to apply
143	Continuing application of Credit Contracts Act 1981 and Hire Purchase Act 1971
	Schedule 1AA Application, savings, and transitional provisions relating to amendments made to this Act after 1 January 2014
	Schedule 1 Key information concerning consumer credit contract
	Schedule 2 Information concerning consumer lease
	Schedule 3 Information concerning buy-back transactions of land
	Schedule 3A Key information concerning repossession warning notice
	Schedule 3B Key information concerning post-repossession notice
	Schedule 4 Acts amended
	Reprint notes

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Credit Contracts and Consumer Finance Act 2003

Credit Contracts and Consumer Finance Act 2003

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