Credit Contracts and Consumer Finance Act 2003

If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment

Subpart 8—Changes on grounds of unforeseen hardship

55 Changes on grounds of unforeseen hardship

(1)

A debtor who is unable reasonably, because of illness, injury, loss of employment, the end of a relationship, or other reasonable cause, to meet the debtor’s obligations under a consumer credit contract and who reasonably expects to be able to discharge the debtor’s obligations if the terms of the contract were changed in a manner set out in section 56 may apply to the creditor to agree to that change.

(1A)

An application under subsection (1) must—

(a)

be in writing; and

(b)

be given to the creditor; and

(c)

specify the reasonable cause (for example, illness, injury, loss of employment, or the end of a relationship) for the debtor’s inability to meet the debtor’s obligations under the consumer credit contract.

(1B)

A debtor who makes an application under this section is not entitled to make another application in relation to the same consumer credit contract unless—

(a)

the application is made not less than 4 months after the previous application is made; or

(b)

in the case of an application that is made less than 4 months after the previous application is made,—

(i)

the creditor agrees to consider the application; or

(ii)

the reasons for the debtor seeking the change under section 56 are materially different from the reasons given in the previous application.

(2)

For the purposes of this section,—

de facto partner, civil union partner, and spouse have the same meanings as in the Property (Relationships) Act 1976

end of a relationship means—

(a)

a situation described in section 25(2)(a) to (d) of the Property (Relationships) Act 1976; or

(b)

the death of the spouse, civil union partner, or de facto partner of the debtor.

Section 55(1A): inserted, on 6 June 2015, by section 37 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).

Section 55(1B): inserted, on 6 June 2015, by section 37 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).

Section 55(2) de facto partner: repealed, on 26 April 2005, by section 7 of the Relationships (Statutory References) Act 2005 (2005 No 3).

Section 55(2) de facto partner, civil union partner, and spouse: inserted, on 26 April 2005, by section 7 of the Relationships (Statutory References) Act 2005 (2005 No 3).

Section 55(2) end of a relationship paragraph (b): amended, on 26 April 2005, by section 7 of the Relationships (Statutory References) Act 2005 (2005 No 3).

Section 55(2) spouse: repealed, on 26 April 2005, by section 7 of the Relationships (Statutory References) Act 2005 (2005 No 3).