Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Debtor's right to cancel

29: Right of cancellation does not apply in certain situations

You could also call this:

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

Illustration for Credit Contracts and Consumer Finance Act 2003

You cannot cancel a credit contract in certain situations. If the credit is for less than 2 months and you do not use it to pay the creditor, then Section 27 does not apply. You also cannot cancel a contract if the problem is that a guarantor was not told something. You cannot use Section 27 to cancel a contract just because a guarantor did not get the information they should have. A layby sale agreement is not covered by Section 27 either. This means you cannot cancel a layby sale for the reasons in Section 27.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212773.

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

Topics:

Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loans

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

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

30: Effect of cancellation, or

"What happens when your credit contract is cancelled"

Part 2Consumer credit contracts
Debtor's right to cancel

29Right of cancellation does not apply in certain situations

Section 27 does not apply if the credit is provided for a specified period of less than 2 months and no part of the credit is used, with the knowledge of the creditor, to pay amounts owing to the creditor or a related company under another credit contract.
Section 27 does not entitle a debtor to cancel a consumer credit contract on the ground that disclosure has not been made to a guarantor.
Section 27 does not apply to a layby sale agreement.

Compare

s 22(4), (5)

Notes

Section 29(3): inserted, on 1 October 2020, by section 21 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).