Plain language law

New Zealand law explained for everyone

Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Required disclosure - Variation disclosure

23: Disclosure of changes following exercise of power

You could also call this:

"When credit contract details change, you must be told within 5 working days"

Illustration for Credit Contracts and Consumer Finance Act 2003

If you have a consumer credit contract, the creditor must tell you about changes. They must tell you about changes to interest rates, payments, fees, or credit limits. You must be told within 5 working days of the change. The creditor must give you full details of the change. They may also have to give you other information, as set out in regulations. In some cases, the creditor can tell you about the change at a different time, as set out in the regulations or in section 35 or section 18. The creditor does not have to tell you about the change if they cannot find you. There are some exceptions to these rules, especially for high-cost consumer credit contracts.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212765.

This page was last updated on — View changes

Topics:
Money and consumer rights > Consumer protection
Previous

22: Disclosure of agreed changes, or

"When credit contract changes are agreed, the lender must tell you about them."

Next

24: Request disclosure, or

"Ask your lender for information about your loan or credit contract"

Part 2Consumer credit contracts
Required disclosure: Variation disclosure

23Disclosure of changes following exercise of power

  1. Every creditor under a consumer credit contract must ensure that disclosure of the information set out in subsection (2) is made to every debtor under the contract if the creditor exercises a power under the contract to change any of the following matters:

  2. the amount of an interest rate under the contract or any other particular in relation to how any interest charge under the contract is calculated or applied:
    1. the amount, frequency, time for payment, or method of calculation of any payment to be made under the contract:
      1. the amount, frequency, time for payment, or method of calculation of any fee or charge payable under the contract:
        1. the amount of a credit limit under the contract.

          1. The information that must be disclosed is as follows:

          2. full particulars of the change:
            1. any other information prescribed by regulations to be information that must be disclosed under this section.

              1. Disclosure under this section must be made within 5 working days of the day on which the change takes effect.

              2. In the case of a change to the amount of an interest rate or in the case of a change to the amount of any fee or charge payable, a creditor may, instead of complying with section 35, make disclosure in accordance with any publication requirements prescribed by regulations for the purposes of this section.

              3. Despite subsection (3), disclosure may, instead of being made in accordance with that subsection, be made in accordance with subsection (6), but only in relation to—

              4. a change that—
                1. reduces the obligations that the debtor would otherwise have; or
                  1. extends the time for payment of any payment to be made under the consumer credit contract; or
                    2. a change of any class prescribed by regulations to be a class of change to which this subsection applies.

                      1. The disclosure referred to in subsection (5) may be made, at the creditor's discretion,—

                      2. within 5 working days of the day on which the change takes effect; or
                        1. if the creditor is required to make continuing disclosure under section 18, at the same time as the creditor provides the debtor with the next continuing disclosure statement (as required under that section) after the change takes effect.

                          1. Disclosure under this section is not required in relation to a particular debtor if the creditor cannot reasonably locate the debtor.

                          2. Subsections (4) and (6) do not apply to a high-cost consumer credit contract.

                          Notes
                          • Section 23(1)(d): inserted, on , by section 19(1) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                          • Section 23(5): amended, on , by section 19(2) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                          • Section 23(5)(a)(iii): repealed, on , by section 19(3) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                          • Section 23(5)(b): replaced, on , by section 19(4) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                          • Section 23(6): inserted, on , by section 19(5) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                          • Section 23(7): inserted, on , by section 17(1) of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).
                          • Section 23(8): inserted, on , by section 17(2) of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).