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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Payments

47: Dating and adjustments of debits and credits in accounts

You could also call this:

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

Illustration for Credit Contracts and Consumer Finance Act 2003

When a creditor adds or subtracts money from your account, it is considered done on the date they say it was done, not when they actually do it. You need to know that the creditor can change these additions or subtractions later to make sure they are correct. The creditor can only do this if it is fair and follows the rules of your consumer credit contract. If the creditor tries to change the date of an addition or subtraction, or changes the amount, it must not break the rules of your contract. It also must not result in you being charged too much interest, more than the law allows. The creditor must not do anything that breaks the rules in section 46 or section 38. The creditor has to follow these rules to ensure everything is fair and correct. They must make sure any changes to your account are allowed under the law and your contract. This is to protect you and make sure you are not treated unfairly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212798.

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Topics:
Money and consumer rights > Consumer protection
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46: Crediting of payments, or

"How creditors put your payments into your account"

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Part 2Consumer credit contracts
Payments

47Dating and adjustments of debits and credits in accounts

  1. A debit or credit made by a creditor to a debtor's account is taken to have been made, and has effect, on the date assigned to the debit or credit and not on the date on which it is processed.

  2. A creditor may subsequently adjust debits or credits to a debtor's account and account balances so as to accurately reflect the legal obligations of the debtor and the creditor.

  3. Subsections (1) and (2) do not permit a debit or credit to be assigned a date other than the date on which it is processed, or the subsequent adjustment of a debit or credit or account balance, if—

  4. the assignment or adjustment is inconsistent with the consumer credit contract; or
    1. the assignment or adjustment results in an interest charge that is more than the maximum amount permitted under this Act, as calculated on the basis of debits and credits to a debtor's account consistent with the consumer credit contract; or
      1. the assignment or adjustment results in a breach of section 46; or
        1. the assignment of the date on which an interest charge is taken to be debited results in a breach of section 38.