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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Required disclosure - Request and guarantee disclosure

25: Disclosure of guarantee

You could also call this:

"What you need to know when guaranteeing a loan"

Illustration for Credit Contracts and Consumer Finance Act 2003

When you agree to guarantee a consumer credit contract, the creditor must give you a copy of the guarantee terms. They must also tell you about the key information in the contract, as set out in the Schedule 1 that applies to your situation. The creditor must do this before you agree to the guarantee. The creditor must give you the copy of the guarantee terms and tell you about the key information in the same way that they would normally disclose information under section 35. If the creditor and the debtor enter into a new contract that the guarantee applies to, the creditor must tell you about the key information within 5 working days. The creditor has to follow these rules to make sure you have the information you need when you agree to guarantee a consumer credit contract.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212768.

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Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loans
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24: Request disclosure, or

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

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26: Disclosure of changes to guarantors, or

"Lenders must tell guarantors about changes to a loan within five working days."

Part 2Consumer credit contracts
Required disclosure: Request and guarantee disclosure

25Disclosure of guarantee

  1. Every creditor who takes a guarantee of a consumer credit contract must ensure—

  2. that every guarantor under the guarantee is given or sent a copy of all of the terms of the guarantee (other than terms implied by law); and
    1. that disclosure of as much of the key information (set out in Schedule 1) as is applicable to each consumer credit contract that the creditor and the debtor enter into and to which the guarantee applies is made to every guarantor under the guarantee.

      1. The copy of the terms of the guarantee must be given or sent, and disclosure of the key information concerning each consumer credit contract that the creditor and the debtor enter into and to which the guarantee applies at the time the guarantee is given must be made, before the guarantee is given.

      2. Disclosure of the key information concerning any subsequent consumer credit contract that the creditor enters into with the debtor and to which the guarantee applies must be made within 5 working days of the day on which the contract is entered into.

      3. For the purposes of subsection (1), the copy of the terms of the guarantee must be given or sent in the same manner that disclosure is made under section 35.

      Compare
      • s 16A
      Notes
      • Section 25(2): replaced, on , by section 21(1) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
      • Section 25(3): amended, on , by section 21(2) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).