Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Payments

46: Crediting of payments

You could also call this:

"How creditors put your payments into your account"

Illustration for Credit Contracts and Consumer Finance Act 2003

When you make a payment on a consumer credit contract, the creditor must put the money into your account as soon as they can. They should do this as soon as it is reasonable to expect, considering their normal business conditions. This means they should make the payment available for use as soon as possible. When you have a schedule of payments, the creditor can follow that schedule if your contract says they can. This is okay even if the schedule might change, for example, if interest rates change. It is also okay if you pay a different amount than what is scheduled. However, if you pay the full amount you owe all at once, the creditor must follow the usual rules for putting the money into your account.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212796.

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

Topics:

Money and consumer rights > Consumer protection

45L: Review of subpart, or

"The Minister checks if this law is working well after 3 years."

47: Dating and adjustments of debits and credits in accounts, or

"When creditors add or subtract money from your account, they must do it fairly and follow the rules."

Part 2Consumer credit contracts
Payments

46Crediting of payments

A creditor must credit each payment made under a consumer credit contract to the debtor's account as soon as practicable after receipt of the payment.
In this section, as soon as practicable means the earliest time that, operating under the normal business conditions applying to the creditor, a reasonable creditor would have the payment available for reinvestment (whether or not on similar terms).
Despite subsection (1), if the consumer credit contract specifies that payments are to be made in accordance with a specified schedule of payments, the creditor may credit a payment that is accepted in accordance with the schedule if the contract expressly permits the creditor to credit those payments in this manner.
Subsection (3) applies whether or not—
the specified schedule of payments is subject to adjustment in accordance with the contract to accommodate contingencies (for example, the possibility of changes to the interest rate); and
the payment is of an amount that is not equal to the amount of the next scheduled payment.

However, subsection (3) does not apply to a full prepayment.