Credit Contracts and Consumer Finance Regulations 2004

Version as at 7 July 2022

Coat of Arms of New Zealand

Credit Contracts and Consumer Finance Regulations 2004

(SR 2004/240)

Silvia Cartwright, Governor-General

Order in Council

At Wellington this 9th day of August 2004

Present:
Her Excellency the Governor-General in Council

Note

The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.

Note 4 at the end of this version provides a list of the amendments included in it.

These regulations are administered by the Ministry of Business, Innovation, and Employment.

Pursuant to section 138 of the Credit Contracts and Consumer Finance Act 2003, Her Excellency the Governor-General, acting on the advice and with the consent of the Executive Council, makes the following regulations.

Contents

1Title
2Commencement
2ATransitional, savings, and related provisions
3Interpretation
4Status of examples
4AAAPPurpose of regulations 4AAAQ to 4AAB
4AAAQAdvertising of payment amounts
4AAARAdvertising of interest rates or charges
4AAASAdvertising of credit fees if advertisement states there is no interest
4AAATProhibited advertising practices
4AAAURequirement for plain language in clear, concise, and intelligible manner
4AAAAdvertisements for high-cost consumer credit contracts: financial mentoring services
4AABAdvertisements for high-cost consumer credit contracts: risk statements
4APublication of costs of borrowing information
4BInformation about interest rates
4CInformation about charging interest
4DInformation about credit fees and default fees
4EMinimum repayment warning
4FDisclosure of agreed changes
4GDisclosure of changes following exercise of power
4HDisclosure of changes to guarantors
4AALender must collect and assess information
4ABAdditional requirements for certain waivers, warranties, and insurance
4ACPurposes
4ADOutline
4AEInterpretation
4AFGeneral rule: full income and expense estimates required in certain cases
4AGException to general rule if obvious no hardship
4AHException to general rules for certain variations and replacements of existing contracts
4AIGeneral rule in other cases
4AJLenders must estimate borrower’s likely income
4AKLenders must do initial estimate of borrower’s likely relevant expenses
4ALHow to calculate certain relevant expenses
4AMLenders must adjust initial estimate of borrower’s likely relevant expenses
4ANBenchmarkable expenses
4AOHigh-cost consumer credit contracts: presumption of substantial hardship
5Alternative publication requirements
5ADisclosure about dispute resolution and financial mentoring services: hardship applications, arrears, credit declined, and complaints
6Assumptions
6AHigh-cost consumer credit contracts for which costs of borrowing must not exceed loan advances
6BRate of charge
7Rebate of consumer credit insurance contract premium
7ARebate of repayment waiver
7BRebate of extended warranty
8Application of regulation 9
9Calculation of reasonable estimate of creditor’s loss if interest rate fixed for whole term
10Application of regulation 11
11Calculation of reasonable estimate of creditor’s loss if interest rate fixed for part of term
12Model disclosure statements
13Terms and conditions for use of model disclosure statements
14Format and layout may not be modified
15Other information
16Model disclosure statement may be divided into 2 parts
17Other key information
18Exemptions from provisions relating to consumer credit contracts where local authority to provide credit
18AExemption from enforcement prohibition [Revoked]
18BExemptions from provisions relating to repossession of consumer goods in cases involving motor vehicles
18CExemptions from disclosure requirements for peer-to-peer lenders
18DExemptions for banks for COVID-19 from provisions relating to consumer credit contracts
18EExemptions for non-bank lenders for COVID-19 from provisions relating to consumer credit contracts
18FExemption for credit under residential earthquake-prone building financial assistance scheme
18GExemption from disclosure about financial mentoring services
18HExemptions for insurance premium funding agreements
19Section 26A of Act not to apply if transfer made for purposes of securitisation or covered bond arrangements or similar arrangements
20Contract manager appointed by new creditor
21New creditor was contract manager before transfer
22Application of section 59B of Act in certain circumstances
23Disclosure before debt collection starts
24Fee for applications for certification
25Which changes in circumstances must be notified
26Fee for notifying changes in circumstances
27Exemption from certification if securitisation or covered bond arrangements or similar arrangements
28Exemptions if credit provided, on interim basis, by non-financial service business
29Requirements in relation to annual returns
Gazette Information
Notes