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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Changes on grounds of unforeseen hardship

55: Changes on grounds of unforeseen hardship

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"Help with debt payments when you're struggling due to illness, injury or other hardship"

Illustration for Credit Contracts and Consumer Finance Act 2003

You can ask a creditor to change a consumer credit contract if you are having trouble paying due to illness, injury, loss of employment, or the end of a relationship. You must make the request in writing and give it to the creditor, saying why you are having trouble paying. The creditor will look at your request and decide what to do, you can find out more about what changes can be made in section 56. You can only make another request if it has been at least 4 months since the last one, or if the creditor agrees to consider it, or if your reasons for asking are different this time. If you are asking because of the end of a relationship, this means your spouse, civil union partner, or de facto partner has died, or you have separated, as described in the Property (Relationships) Act 1976. The terms de facto partner, civil union partner, and spouse have the same meanings as in the Property (Relationships) Act 1976.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213108.

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Money and consumer rights > Consumer protectionFamily and relationships > Marriage and partnerships
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"Changing your credit contract: what you can ask for"

Part 2Consumer credit contracts
Changes on grounds of unforeseen hardship

55Changes on grounds of unforeseen hardship

  1. A debtor who is unable reasonably, because of illness, injury, loss of employment, the end of a relationship, or other reasonable cause, to meet the debtor's obligations under a consumer credit contract and who reasonably expects to be able to discharge the debtor's obligations if the terms of the contract were changed in a manner set out in section 56 may apply to the creditor to agree to that change.

  2. An application under subsection (1) must—

  3. be in writing; and
    1. be given to the creditor; and
      1. specify the reasonable cause (for example, illness, injury, loss of employment, or the end of a relationship) for the debtor's inability to meet the debtor's obligations under the consumer credit contract.

        1. A debtor who makes an application under this section is not entitled to make another application in relation to the same consumer credit contract unless—

        2. the application is made not less than 4 months after the previous application is made; or
          1. in the case of an application that is made less than 4 months after the previous application is made,—
            1. the creditor agrees to consider the application; or
              1. the reasons for the debtor seeking the change under section 56 are materially different from the reasons given in the previous application.

              2. For the purposes of this section,—

                de facto partner, civil union partner, and spouse have the same meanings as in the Property (Relationships) Act 1976

                  end of a relationship means—

                  1. a situation described in section 25(2)(a) to (d) of the Property (Relationships) Act 1976; or
                    1. the death of the spouse, civil union partner, or de facto partner of the debtor.

                    Notes
                    • Section 55(1A): inserted, on , by section 37 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                    • Section 55(1B): inserted, on , by section 37 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                    • Section 55(2) de facto partner: repealed, on , by section 7 of the Relationships (Statutory References) Act 2005 (2005 No 3).
                    • Section 55(2) de facto partner, civil union partner, and spouse: inserted, on , by section 7 of the Relationships (Statutory References) Act 2005 (2005 No 3).
                    • Section 55(2) end of a relationship paragraph (b): amended, on , by section 7 of the Relationships (Statutory References) Act 2005 (2005 No 3).
                    • Section 55(2) spouse: repealed, on , by section 7 of the Relationships (Statutory References) Act 2005 (2005 No 3).