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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Fees - Unreasonable fees

41: Unreasonable credit fee or default fee

You could also call this:

"Fees for borrowing or late payment must be fair"

Illustration for Credit Contracts and Consumer Finance Act 2003

You have a consumer credit contract. It must not have a credit fee or default fee that is unreasonable. A credit fee is a fee for borrowing money and a default fee is a fee for not paying back money on time. You can check the rules about credit contracts on the New Zealand legislation website https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6109033

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212789.

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Topics:
Money and consumer rights > Consumer protection
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40: Default interest charges, or

"What happens if you don't pay your credit contract on time"

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41A: Records and reviews about how fees calculated, or

"Keeping records of how credit fees are calculated and making sure they are fair"

Part 2Consumer credit contracts
Fees: Unreasonable fees

41Unreasonable credit fee or default fee

  1. A consumer credit contract must not provide for a credit fee or a default fee that is unreasonable.

Notes
  • Section 41: replaced, on , by section 29 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).