Hon Craig Foss
Government Bill
104—3A
As reported from the committee of the whole House
Bill note
Key
1 Title
2 Commencement
3 Principal Act
4 Section 3 replaced (Purposes)
3 Purposes
5 Section 4 amended (Overview)
6 Section 5 amended (Interpretation)
6A Section 8 amended (Meaning of buy-back transaction)
7 New section 8B inserted (Provisions affecting application of amendments to this Act)
8B Provisions affecting application of amendments to this Act
9 New Part 1A inserted
Part 1ALender responsibilities
9AA Outline of Part
Interpretation
9A Interpretation
Principles
9B Lender responsibility principles
9BA Proceedings for breach of legal obligations under other Acts
Responsible Lending Code
9C Purpose of Responsible Lending Code
9D Content of Responsible Lending Code
How Responsible Lending Code made and administered
9E Preparation and issue of Responsible Lending Code
9F Responsible Lending Code comes into force by notice in Gazette
9G Amendment of Responsible Lending Code
Publication of standard form contract terms and disclosure of costs of borrowing
9H Publication of standard form contract terms
9I Publication of costs of borrowing
9IA Extended meaning of business premises
9J Application of section 9H to repayment waiver or extended warranty
11 Section 11 amended (Meaning of consumer credit contract)
11A Section 14 amended (Effect of declaration)
12 Section 15 amended (Certain contracts not consumer credit contracts)
12A New section 15A inserted (Part does not apply to pawnbroking contract)
15A Part does not apply to pawnbroking contract
12B Section 16 amended (Lease of goods treated as consumer credit contract)
13 Section 17 amended (Initial disclosure)
13A Section 19 amended (Content of continuing disclosure statement)
14 Section 21 amended (Continuing disclosure not required)
15 Section 22 amended (Disclosure of agreed changes)
16 Section 23 amended (Disclosure of changes following exercise of power)
17 Section 24 amended (Request disclosure)
18 Section 25 amended (Disclosure of guarantee)
19 New section 26A inserted (Disclosure of transfer of rights of creditor under consumer credit contract)
26A Disclosure of transfer of rights of creditor under consumer credit contract
20 Section 27 amended (Right to cancel consumer credit contract)
21 Section 30 replaced (Effect of cancellation)
30 Effect of cancellation
21A Section 31 amended (Effect of credit sale cancellation)
22 Section 32 amended (Disclosure standards)
22A Section 34 replaced (Model forms)
34 Creditor, etc, may voluntarily use model disclosure statement if not required to use mandatory form
23 Section 40 amended (Default interest charges)
24 Section 41 replaced (Unreasonable credit fee or default fee)
41 Unreasonable credit fee or default fee
25 Section 43 replaced (Prepayment fees)
43 Prepayment fees
26 Section 44 replaced (Other credit fees and default fee)
44 Credit fees other than establishment fees and prepayment fees
44A Default fees
44B Compliance with Code is evidence that fees are not unreasonable
27 Section 45 amended (Fees or charges passed on by creditor)
27A Section 48 amended (Recovery of payments)
28 Section 51 amended (Amount required for full prepayment)
29 Section 52 amended (Rebate of insurance)
30 New sections 52A and 52B inserted
52A Rebate of repayment waiver
52B Rebate of extended warranty
31 Section 55 amended (Changes on grounds of unforeseen hardship)
32 Section 57 amended (Application may not be made in certain circumstances)
33 New section 57A inserted (Obligations of creditor in relation to application)
57A Obligations of creditor in relation to application
34 Section 58 amended (Changes by court)
34A New section 59A inserted (How notices may be given)
59A How notices may be given
34B Section 60 amended (Consumer leases)
34C Section 62 amended (Declaration concerning consumer lease)
35 Section 66 repealed (Variation disclosure not required)
37 Section 69 amended (Restrictions on credit-related insurance, repayment waivers, and extended warranties)
38 Section 70 amended (Disclosure of credit-related insurance, repayment waiver, or extended warranty)
39 Section 78 repealed (Variation disclosure not required)
40 Section 79 amended (Request disclosure for buy-back transactions)
41 Section 80 amended (Unreasonable buy-back fees or buy-back default fees)
42 Section 82 amended (Unreasonable fees payable to buy-back promoter or associated person)
43 New Part 3A inserted
Part 3ARepossession of consumer goods under credit contract
Subpart 1—Preliminary provisions
83A Outline of Part
83AB References to credit contracts include security agreements
83B Application of Part
83BA Part does not create right to repossess, etc
Subpart 2—Rules that apply before repossession
83C Circumstances in which creditor can repossess consumer goods
83CA Duty to ensure goods are specifically identified
83D Creditor must serve repossession warning notice on debtor and other persons before taking possession of consumer goods
83E Debtor may voluntarily deliver consumer goods
83F Rules relating to accessions (goods that are installed in, or affixed to, other goods)
83G Effect of debtor's complaint or application on grounds of unforeseen hardship on creditor's rights to enforce credit contract
83GA Subsequent complaints
Subpart 3—Disabling devices
83H Use of disabling device
83HI Connection or use of disabling device in connection with certain goods prohibited
Subpart 4—Rules that apply at time of repossession
83I Creditor must allow debtor time to remedy default or at least 15 days to elapse
83J Documents to be produced on entry
83JA Entry if occupier not present
83K Creditor must exercise right to enter premises in accordance with lender responsibility principles
83L Creditor must not enter premises if complaint not resolved or unforeseen hardship application not decided
83M Creditor must not enter residential premises at certain times
83N Restrictions applying in relation to persons repossessing consumer goods
Subpart 5—Rules that apply after repossession of consumer goods
83O Interpretation
83P Notice to be given to debtor, guarantor, and other creditors after repossession of consumer goods
83Q Creditor must not sell consumer goods until 15 days after post-repossession notice
83R Consequences of selling within 15 days of post-repossession notice
83S Creditor must offer consumer goods for sale
83T Rules relating to sale by creditor
83U Debtor may obtain valuation of consumer goods before sale
83V Debtor’s right to reinstate credit contract
83W Consequences of reinstating credit contract
83X Debtor’s right to introduce buyer
83Y Debtor’s right to settle credit contract
83Z Debtor’s right to force sale
83ZA Disposal of consumer goods to purchaser for value and in good faith
83ZB Extinguishment of creditor's security interest and subordinate security interests on sale
83ZC Creditor to give statement of account to debtor, guarantor, and other interested persons
83ZD Distribution of surplus
83ZE Surplus may be paid into court
83ZF Debtor’s, etc, right to recover surplus
83ZG Limit on creditor’s right to recover from debtor
Subpart 5A—Prohibitions relating to security interest over certain consumer goods
83ZGA Credit contract may not provide for security interest over certain consumer goods
83ZGB Contravening provision of no effect
83ZGC Exclusion for fixtures
Subpart 6—Miscellaneous provisions
83ZH Service of notices
83ZI Part does not limit application of rules relating to conduct of servants or agents
44 Section 86 amended (Jurisdiction of District Courts)
45 Section 87 amended (Jurisdiction of Disputes Tribunals)
45A New section 87A inserted (Jurisdiction of dispute resolution schemes)
87A Jurisdiction of dispute resolution schemes
46 Section 88 amended (Creditors, lessors, transferees, and buy-back promoters liable for statutory damages)
47 Section 89 amended (Amount of statutory damages)
48 Section 90 amended (Enforcement of statutory damages)
48A Section 91 amended (Court may reduce statutory damages)
49 Section 93 amended (Court's general power to make orders)
50 Section 94 amended (Court orders)
51 New section 94A inserted (Court orders in relation to repossessions)
94A Court orders in relation to repossessions
52 Section 95 amended (Miscellaneous provisions concerning court's general power to make orders)
53 Section 96 amended (Injunctions)
54 Section 99 amended (Enforcement of consumer credit contract prohibited)
55 New sections 99A and 99B inserted
99A Enforcement of rights of repossession, etc, prohibited
99B Enforcement prohibited if creditor unregistered
56 Section 101 amended (Enforcement of consumer lease prohibited)
57 Section 102 amended (Enforcement of buy-back transaction prohibited)
58 Section 103 replaced (Offences)
102A Infringement offences
103 Other offences
59 Section 105 replaced (When proceedings may be commenced for certain offences)
105 When proceedings may be commenced
59A New sections 105A to 105F inserted
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
60 Section 108 amended (Power to order certain persons not to act as creditors, lessors, transferees, or buy-back promoters)
61 Section 111 amended (Role and functions of Commission under this Act)
62 Section 119 amended (Collateral contracts and linked transactions)
63 Section 124 replaced (Guidelines for reopening credit contracts, consumer leases, and buy-back transactions)
124 Guidelines for reopening credit contracts, consumer leases, and buy-back transactions
63A Section 134 amended (Right to set-off)
64 Section 135 amended (No contracting out)
65 Section 138 amended (Regulations)
66 New section 141A inserted (Application, savings, and transitional provisions relating to amendments to Act)
141A Application, savings, and transitional provisions relating to amendments to Act
67 New Schedule 1AA inserted
68 Schedule 1 amended
69 New Schedules 3A and 3B inserted
70 Consequential amendments to, or repeals of, other Acts
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Schedule 1New Schedule 1AA inserted
Schedule 2New Schedules 3A and 3B inserted
Schedule 3Consequential amendments to, or repeals of, other Acts
Legislative history
The Parliament of New Zealand enacts as follows: