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Credit Contracts and Consumer Finance Act 2003

Reopening of oppressive credit contracts, consumer leases, and buy-back transactions

119: Collateral contracts and linked transactions

You could also call this:

"What happens when you have to sign another contract as part of your loan or lease agreement"

Illustration for Credit Contracts and Consumer Finance Act 2003

You enter into a credit contract, consumer lease, or buy-back transaction. If someone takes a security interest or guarantee, it is part of the contract. This is for the purposes of this Part of the Credit Contracts and Consumer Finance Act 2003. You have a credit contract with terms that say you must enter another contract. Parts of that other contract about credit or payments are treated as part of your credit contract. This is also for the purposes of this Part. You have a consumer lease or buy-back transaction with terms that say you must enter another contract. Parts of that other contract about payments are treated as part of your lease or transaction. This is for the purposes of this Part of the Act, which can be found on the New Zealand legislation website.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213509.

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Topics:
Money and consumer rights > Consumer protection
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118: Meaning of oppressive, or

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120: Reopening of credit contracts, consumer leases, and buy-back transactions, or

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Part 5Reopening of oppressive credit contracts, consumer leases, and buy-back transactions

119Collateral contracts and linked transactions

  1. If a security interest or guarantee is or may be taken in connection with a credit contract, consumer lease, or buy-back transaction, the contract or arrangement that creates or provides for the security interest or guarantee is to be treated as forming part of the credit contract, lease, or transaction for the purposes of this Part.

  2. If it is a term of a credit contract that another contract or arrangement be entered into, any part of that other contract or arrangement that relates to the provision of credit to, or the payment of money by, a debtor under the credit contract is to be treated as forming part of the credit contract for the purposes of this Part.

  3. If it is a term of a consumer lease or buy-back transaction that another contract or arrangement be entered into, any part of that other contract or arrangement that relates to the payment of money by a lessee under the consumer lease or by an occupier under a buy-back transaction is to be treated as forming part of the consumer lease or transaction for the purposes of this Part.

Notes
  • Section 119(1): amended, on , by section 73 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).