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Credit Contracts and Consumer Finance Act 2003

Enforcement and remedies - Defence

106: Reasonable mistake defence

You could also call this:

"You can say it was a reasonable mistake if you fix it and pay for any harm caused."

Illustration for Credit Contracts and Consumer Finance Act 2003

You have a defence if you make a mistake. You must prove the mistake was reasonable or outside your control. You must also fix the mistake as soon as you can and compensate anyone who suffered loss. You can use this defence for claims under section 88, prosecutions under section 103(1), or proceedings under subpart 5A. A mistake does not include not knowing the law or not understanding a document. You must compensate or offer to compensate anyone who suffered loss because of your mistake.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213190.

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Part 4Enforcement and remedies
Defence

106Reasonable mistake defence

  1. Every person has a defence to a claim for statutory damages under section 88, a prosecution under section 103(1), or proceedings for pecuniary penalties under subpart 5A, in connection with a breach of this Act, if the person proves that—

  2. the breach was due to a reasonable mistake or due to events outside of the person's control; and
    1. the breach was remedied (to the extent that it could be remedied) as soon as practicable after the breach was discovered by the person or brought to the person's notice; and
      1. the person has compensated or offered to compensate any person who has suffered loss or damage by that breach.

        1. For the avoidance of doubt, a mistake does not include a mistake of law or a mistake in the interpretation of any enactment or of any document.

        Notes
        • Section 106(1): amended, on , by section 41 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).