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Credit Contracts and Consumer Finance Act 2003

Consumer leases, credit-related insurance, and buy-back transactions of land - Consumer leases - Amount payable on termination

68: Amount payable on termination

You could also call this:

"What you pay if your lease ends early"

Illustration for Credit Contracts and Consumer Finance Act 2003

If you are a lessee and your consumer lease ends early, you pay the lesser amount. This amount is either what the lease says, which must be reasonable, or what regulations say. You only pay what is fair for the lessor's loss.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213137.

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Topics:
Money and consumer rights > Consumer protectionHousing and property > Renting
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Part 3Consumer leases, credit-related insurance, and buy-back transactions of land
Consumer leases: Amount payable on termination

68Amount payable on termination

  1. The amount payable by a lessee on the termination of a consumer lease before the end of its term is the lesser of—

  2. an amount payable under the lease that does not exceed a reasonable estimate of the lessor's loss relating to the termination; or
    1. the amount determined using a procedure prescribed by regulations for the purposes of this section (if any).