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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Debtor's right to cancel

27: Right to cancel consumer credit contract

You could also call this:

"You can cancel a loan or credit deal within 5 working days of getting the details."

Illustration for Credit Contracts and Consumer Finance Act 2003

You can cancel a consumer credit contract within 5 working days of the creditor giving you disclosure under section 17. You must give the creditor written notice to cancel the contract. You may need to pay the cash price or return property to the creditor. You have to pay the cash price if you want to keep the property or services. You must pay within 15 working days of giving the notice. You can also return any advance or property to the creditor within 5 working days. Some contracts are special, like credit sales of goods you have taken possession of, or sales by auction. These contracts have different rules, like paying the cash price or returning property. You should check Schedule 1 for more information about disclosure.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212771.

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Topics:
Money and consumer rights > Consumer protection
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26B: Disclosure about dispute resolution schemes and financial mentoring services: hardship applications, arrears, credit declined, and complaints, or

"What to know when you have credit problems or complaints"

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28: Notice of cancellation, return of property, and payment of cash price, or

"How to cancel a credit contract and what happens next"

Part 2Consumer credit contracts
Debtor's right to cancel

27Right to cancel consumer credit contract

  1. A debtor under a consumer credit contract may cancel the contract by giving written notice of the cancellation to the creditor under the contract within 5 working days of the day that disclosure is made under section 17 (or at any time if that disclosure has not been made) and either,—

  2. in the case of a contract referred to in subsection (2), paying the cash price of the property or services (or the balance of the cash price after deducting any amount already paid by the debtor) to the creditor within 15 working days of the day the notice is given; or
    1. in any other case, returning to the creditor any advance and any other property received by a debtor under the contract within 5 working days of the day that disclosure is made under section 17 (or at any time if that disclosure has not been made).

      1. A consumer credit contract for the purposes of subsection (1)(a) is—

      2. a credit sale of goods if the debtor has taken possession of the goods and disclosure of the information referred to in paragraph (s) of Schedule 1 has been made:
        1. a credit sale involving a sale of property by auction:
          1. a credit sale of property that the debtor wants to keep or of services the debtor wants to obtain:
            1. a credit sale of services that have been performed.

              Compare
              • 1981 No 27 s 22(1), (2)
              Notes
              • Section 27(1): amended, on , by section 23 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
              • Section 27(1)(b): amended, on , by section 23 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).