Plain language law

New Zealand law explained for everyone

Credit Contracts and Consumer Finance Act 2003

Enforcement and remedies - Prohibition on certain creditors, lessors, transferees, and buy-back promoters

108: Power to order certain persons not to act as creditors, lessors, transferees, or buy-back promoters

You could also call this:

"The Court can stop people from lending money or selling goods if they've done something wrong."

Illustration for Credit Contracts and Consumer Finance Act 2003

The District Court can stop you from doing certain things if you have done something wrong. You might have been convicted of a crime or broken the rules of the Credit Contracts and Consumer Finance Act. The Court can stop you from lending money or leasing goods to people. You might not be allowed to work for a company that lends money or leases goods. The Court can also stop you from being involved in buy-back transactions. This means you cannot buy back goods from people or help others do so. The District Court makes this decision if they think you are not a fit and proper person. They consider whether you have broken the law or done something dishonest, as defined in the Crimes Act 1961, which you can read about on the New Zealand legislation website https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327394. They also look at whether you have failed to follow the rules of other Acts, such as the Fair Trading Act 1986, the Financial Service Providers (Registration and Dispute Resolution) Act 2008, or the Secondhand Dealers and Pawnbrokers Act 2004.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213193.

This page was last updated on — View changes

Topics:
Money and consumer rights > Consumer protectionCrime and justice > Criminal law
Previous

107E: Restriction on insurance, or

"No insurance for law-breaking fines"

Next

109: Who may apply and nature of order, or

"Who can ask the court for a special order and what it can do"

Part 4Enforcement and remedies
Prohibition on certain creditors, lessors, transferees, and buy-back promoters

108Power to order certain persons not to act as creditors, lessors, transferees, or buy-back promoters

  1. The District Court may make an order prohibiting or restricting a person from doing all or any of the matters set out in subsection (2) if—

  2. the person—
    1. has been convicted of an offence against this Act, or of a crime involving dishonesty (as defined in section 2(1) of the Crimes Act 1961); or
      1. is, or has been, a creditor under a credit contract that has been reopened under the Credit Contracts Act 1981; or
        1. is, or has been, a creditor under a credit contract, a lessor under a consumer lease, or a transferee under a buy-back transaction that has been reopened under section 120; or
          1. is, or has been, a buy-back promoter in connection with a buy-back transaction that has been reopened under section 120; or
            1. has failed to comply with any of the provisions of this Act (including, to avoid doubt, the lender responsibility principles (see section 9C(2)); or
              1. has failed to comply with any of the provisions of any of the following Acts or of any equivalent overseas legislation:
                1. the Fair Trading Act 1986:
                  1. the Financial Service Providers (Registration and Dispute Resolution) Act 2008:
                    1. the Secondhand Dealers and Pawnbrokers Act 2004; or
                    2. was a director or principal officer of a body corporate at the time the body corporate acted in the manner referred to in subparagraphs (i) to (va); and
                    3. in the opinion of the District Court, the person is not a fit and proper person to—
                      1. enter into consumer credit contracts as a creditor; or
                        1. enter into consumer leases as a lessor; or
                          1. enter into buy-back transactions as a transferee; or
                            1. act as a buy-back promoter in connection with a buy-back transaction.

                            2. Repealed

                            3. The matters are—

                            4. providing credit under consumer credit contracts, leasing goods under consumer leases, purchasing land under buy-back transactions, or acting as a buy-back promoter in connection with a buy-back transaction either alone or in partnership with any person and whether or not through agents:
                              1. acting as a director or taking part directly or indirectly in the management or control of any company or business that provides credit under consumer credit contracts, leases goods under consumer leases, purchases land under buy-back transactions, or acts as a buy-back promoter in connection with a buy-back transaction:
                                1. being in the employ, or acting as an agent, of a creditor, a lessor, a transferee, or a buy-back promoter in any capacity that allows the person to take any part in the negotiation of—
                                  1. consumer credit contracts involving the provision of credit by the creditor; or
                                    1. consumer leases involving the leasing of goods by the lessor; or
                                      1. buy-back transactions.

                                      Compare
                                      • s 39(1)
                                      Notes
                                      • Section 108(1): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).
                                      • Section 108(1)(a)(v): replaced, on , by section 71(1) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                                      • Section 108(1)(a)(v): amended, on , by section 44(1) of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).
                                      • Section 108(1)(a)(va): inserted, on , by section 44(2) of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).
                                      • Section 108(1)(a)(vi): amended, on , by section 44(3) of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).
                                      • Section 108(1A): repealed, on , by section 44(4) of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).