Credit Contracts and Consumer Finance Act 2003

Enforcement and remedies - Orders, injunctions, and prohibited enforcement - Prohibited enforcement

101: Enforcement of consumer lease prohibited

You could also call this:

"Lease holders can't make you pay until they give you the right information"

Illustration for Credit Contracts and Consumer Finance Act 2003

If you have a consumer lease, the person you leased from cannot enforce the lease until they give you the required information under section 64 or section 65. They cannot make you pay for anything before you get this information. You are not liable for the costs of the lease if the lessor fails to give you the required information. If the lessor does not comply with section 64 or 65, you do not have to pay the costs of the lease for a certain period. This period starts when the lessor fails to give you the information and ends when they finally give it to you. However, you may still have to pay some fees or charges in certain situations. You should note that there are some exceptions to this rule, such as when you have to pay fees or charges to reimburse the lessor for an amount they paid to someone else, but only if that someone else is not associated with the lessor.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213182.

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Part 4Enforcement and remedies
Orders, injunctions, and prohibited enforcement: Prohibited enforcement

101Enforcement of consumer lease prohibited

  1. If disclosure is required under section 64 or section 65, no person (other than a lessee under the consumer lease) may, before that disclosure is made,—

  2. enforce the lease; or
    1. enforce any right to recover property to which the lease relates; or
      1. enforce any right in relation to the costs of the lease; or
        1. require the lessee or any other person to make a payment of an amount before that amount is payable under the lease on the basis of a failure by the lessee or other person to pay the costs of the lease; or
          1. enforce any security interest taken in connection with the lease.
            1. Neither the lessee nor any other person is liable for the costs of the lease in relation to any period during which the lessor has failed to comply with section 64 or 65.

            2. The period referred to in subsection (2)—

            3. starts on the date of the failure; and
              1. ends only at the close of the day on which the disclosure under section 64 or 65 is made.
                1. However, subsection (2) does not apply in relation to fees or charges payable by a lessee for an amount payable, or to reimburse an amount paid, by the lessor to another person, body, or agency unless the person, body, or agency is an associated person of the lessor.

                Notes
                • Section 101(1)(ba): inserted, on , by section 66(1) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                • Section 101(1)(bb): inserted, on , by section 66(1) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                • Section 101(2): inserted, on , by section 66(2) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                • Section 101(3): inserted, on , by section 66(2) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                • Section 101(4): inserted, on , by section 66(2) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).