Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Debtor's right to cancel

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

You could also call this:

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

Illustration for Credit Contracts and Consumer Finance Act 2003

You can cancel a consumer credit contract by giving written notice. You can write this notice in any way that shows you want to cancel the contract. You can give the notice to the creditor or their agent. You can give the notice in person or by posting it to the creditor's last known address. You can also give the notice electronically if the creditor agrees to this. The creditor can set conditions for electronic notices. Someone can act on your behalf to give the notice, return property, and pay the cash price. This person is called an agent and they act for you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212772.

This page was last updated on 1 January 2026 — View changes

Topics:

Money and consumer rights > Consumer protection

27: Right to cancel consumer credit contract, or

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

29: Right of cancellation does not apply in certain situations, or

"Some credit contracts can't be cancelled, even if there's a problem."

Part 2Consumer credit contracts
Debtor's right to cancel

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

Written notice of cancellation may be expressed in any way that shows the intention of the debtor to cancel or withdraw from the consumer credit contract.
Written notice of cancellation may be given, property may be returned, and a cash price paid, to a creditor—
by giving it to the creditor or any agent or employee of the creditor; or
by posting it to the last known place of residence or business of the creditor or any agent of the creditor.

Written notice of cancellation may be given in electronic form, whether by means of an electronic communication or otherwise, if the creditor consents to notices or other communications from the debtor being given in electronic form and by means of an electronic communication, if applicable.
For the purposes of this section, a creditor may consent to notices or other communications from the debtor being given in electronic form subject to conditions regarding the form of the notice or communication or the means by which the notice or communication is produced, sent, received, processed, stored, or displayed.
Written notice of cancellation may be given, property may be returned, and a cash price paid by an agent acting on behalf of a debtor.

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s 22(3)