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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Disclosure standards and how disclosure is made

32: Disclosure standards

You could also call this:

"Lenders must give you clear and accurate information when you borrow money"

Illustration for Credit Contracts and Consumer Finance Act 2003

When you get a consumer credit contract, the lender must give you information in writing. This information must be clear and easy to understand. It must also be accurate and not misleading. The lender can give you this information in one document or several documents. They can also include it in other documents. If you have more than one credit facility, the lender can give you one or more disclosure statements. The lender can give you this information electronically, like by email, if you agree to it. You must be able to access the information easily and use it later. You can agree to get the information electronically, but you can also set conditions on how it is given to you. The lender must follow the rules about what information to give you and how to give it to you. You can check the Credit Contracts and Consumer Finance Act 2003 for more information.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212777.

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Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loans
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Part 2Consumer credit contracts
Disclosure standards and how disclosure is made

32Disclosure standards

  1. Disclosure must—

  2. be in writing in a disclosure statement; and
    1. contain the information required by this Act; and
      1. if required by the regulations, be made in the form prescribed by regulations for the purposes of this paragraph; and
        1. express the required information clearly, concisely, and in a manner likely to bring the information to the attention of a reasonable person; and
          1. not be likely to deceive or mislead a reasonable person with regard to any particular that is material to the consumer credit contract, guarantee, consumer lease, or buy-back transaction (as the case may be).

            1. If subsection (1)(ba) applies and a person gives disclosure in the prescribed form in the manner required by the regulations, the person is to be treated as having complied with the requirements of subsection (1)(a), (c), and (d).

            2. A disclosure statement—

            3. may be in a single document or a series of related documents:
              1. may be included as part of 1 or more other documents.

                1. If a creditor provides 2 or more credit facilities to a debtor under 1 or more consumer credit contracts, disclosure may be made in 1 or more disclosure statements.

                2. The requirement to make disclosure in writing may be met by giving or making available the required information in electronic form, whether by means of an electronic communication or otherwise, if—

                3. the information is readily accessible so as to be usable for subsequent reference; and
                  1. the person to whom the disclosure is required to be made consents to the disclosure being made in electronic form and by means of an electronic communication, if applicable.

                    1. For the purposes of this section, a person may consent to the information being given in electronic form subject to conditions regarding the form of the information or the means by which the information is produced, sent, received, processed, stored, or displayed.

                    Notes
                    • Section 32(1)(ba): inserted, on , by section 26(1) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                    • Section 32(1A): inserted, on , by section 26(2) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                    • Section 32(4): amended, on , by section 22 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).