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Credit Contracts and Consumer Finance Act 2003

Consumer leases, credit-related insurance, and buy-back transactions of land - Credit-related insurance, repayment waivers, and extended warranties

69: Restrictions on credit-related insurance, repayment waivers, and extended warranties

You could also call this:

"Rules to stop unfair demands about insurance and warranties when borrowing money"

Illustration for Credit Contracts and Consumer Finance Act 2003

When you enter a consumer credit contract or consumer lease, the creditor or lessor cannot make unfair demands about insurance or warranties. You should be protected from unfair requirements for credit-related insurance, repayment waivers, or extended warranties. A requirement is unfair if it is not necessary to protect the creditor or lessor, or if it is not fair considering the risks involved.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213139.

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Topics:
Money and consumer rights > Consumer protection
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Part 3Consumer leases, credit-related insurance, and buy-back transactions of land
Credit-related insurance, repayment waivers, and extended warranties

69Restrictions on credit-related insurance, repayment waivers, and extended warranties

  1. A creditor or a lessor must not, in connection with a consumer credit contract or consumer lease, make any unreasonable requirement as to the terms on which the debtor or lessee is to take out or obtain credit-related insurance, a repayment waiver, or an extended warranty.

  2. A requirement is unreasonable if—

  3. it is not reasonably necessary for the protection of the legitimate interests of the creditor or lessor; or
    1. it is not reasonably justifiable in light of the risks undertaken by the parties to the arrangement.

      1. Repealed
      Notes
      • Section 69(3): repealed, on , by section 45 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).