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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Payments

48: Recovery of payments

You could also call this:

"Getting back money you didn't owe"

Illustration for Credit Contracts and Consumer Finance Act 2003

If you pay a creditor money they are not allowed to have, they must give it back to you as soon as possible. They can either refund the money or use it to pay off something else you owe them. This rule applies even if you agreed to something different. You are protected by this law, and creditors must follow it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212799.

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Topics:
Money and consumer rights > Consumer protection
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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."

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49: Part prepayments, or

"Paying off part of a loan early"

Part 2Consumer credit contracts
Payments

48Recovery of payments

  1. If a debtor makes any payment to a creditor that, by virtue of this Act, the creditor is not entitled to receive, the creditor must, as soon as practicable,—

  2. refund the payment to the debtor; or
    1. credit the payment against any amount otherwise owing by the debtor to the creditor.

      1. Subsection (1) applies despite any agreement to the contrary.

      Notes
      • Section 48(1): replaced, on , by section 33 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).