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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Changes on grounds of unforeseen hardship

58: Changes by court

You could also call this:

"Asking the court to change a credit contract"

Illustration for Credit Contracts and Consumer Finance Act 2003

You can ask the court to change the terms of a consumer credit contract if you have already made an application under section 55 and the creditor has not done what they should. The creditor might not have told you their decision on your application within the right time, as stated in section 57A(1)(c) or (2), or they might not agree to change the contract. You can ask the court to make a change to the contract, like it says in section 56. The court will listen to you, the creditor, and any guarantor, and then it can make an order to change the contract. The court can also make any other orders it thinks are necessary. It can stop any enforcement proceedings under the contract until your application has been decided. The court can make decisions about staying enforcement proceedings, but this does not apply to the Disputes Tribunal established under section 4 of the Disputes Tribunal Act 1988. You should be aware of this when you are dealing with consumer credit contracts. The court's decisions will depend on the circumstances of your case.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213122.

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Topics:
Money and consumer rights > Consumer protection
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57A: Obligations of creditor in relation to application, or

"What the lender must do when you ask to change a credit contract"

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59: Creditor may apply for variation of change, or

"A creditor can ask the court to change or cancel a decision."

Part 2Consumer credit contracts
Changes on grounds of unforeseen hardship

58Changes by court

  1. A debtor who has made an application under section 55 may apply to the court to change the terms of a consumer credit contract if—

  2. the creditor fails, within the time specified in section 57A(1)(c) or (2), to notify the debtor of its decision on the application; or
    1. the creditor does not agree to change the consumer credit contract in accordance with the application.

      1. The court may, after allowing the applicant, the creditor, and any guarantor a reasonable opportunity to be heard,—

      2. by order, change the consumer credit contract in a manner set out in section 56; and
        1. make any other orders it thinks fit.

          1. The court may, if it thinks it appropriate in the circumstances, stay any enforcement proceedings under the consumer credit contract, and make any other orders it thinks fit, until the application has been determined.

          2. Subsection (3) does not apply to the Disputes Tribunal established under section 4 of the Disputes Tribunal Act 1988.

          Notes
          • Section 58(1): replaced, on , by section 40 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
          • Section 58(4): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).