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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Payments - Prepayments

50: Debtor's right to full prepayment

You could also call this:

"Paying off your debt in full at any time"

Illustration for Credit Contracts and Consumer Finance Act 2003

You can pay off your consumer credit contract in full at any time. The creditor must accept your full payment. Your payment must be credited in accordance with section 46(1). You are allowed to pay off your contract in full. Your contract cannot stop you from doing this. Some other laws, like sections 97 to 99 of the Property Law Act 2007, do not limit your right to pay off your contract in full, or affect section 51.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213102.

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Topics:
Money and consumer rights > Consumer protection
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49: Part prepayments, or

"Paying off part of a loan early"

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51: Amount required for full prepayment, or

"Paying off your debt early: what you need to pay"

Part 2Consumer credit contracts
Payments: Prepayments

50Debtor's right to full prepayment

  1. A creditor must accept any full prepayment of a consumer credit contract from a debtor at any time.

  2. The full prepayment must be credited in accordance with section 46(1).

  3. A consumer credit contract must not prohibit the full prepayment of the contract.

  4. Nothing in sections 97 to 99 of the Property Law Act 2007 limits this section or section 51.

Notes
  • Section 50(4): amended, on , by section 364(1) of the Property Law Act 2007 (2007 No 91).