Plain language law

New Zealand law explained for everyone

Credit Contracts and Consumer Finance Act 2003

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

122: Reopening credit contracts involved in arrangement

You could also call this:

"Going to court to fix credit contracts that are part of a debt arrangement"

Illustration for Credit Contracts and Consumer Finance Act 2003

You can go to court to reopen credit contracts that are part of an arrangement. The court can do this if the creditor knows that you used credit from one contract to pay another. The court can also do this if the creditors are the same person or related companies. You can do this even if the court does not think that section 120(a) to (c) applies. The court's decision is separate from this. You can ask the court to reopen all or some of the credit contracts. The court will consider the credit contracts and the arrangement. They will look at who the creditors are and how the credit is being used. This helps the court make a decision about reopening the credit contracts.

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 It might be out of date or be missing some parts.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=DLM213512.

This page was last updated on — View changes

Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loansCrime and justice > Courts and legal help
Previous

121: Refusal to agree to early termination, variation, or waiver, or

"Saying no to ending or changing a credit contract early"

Next

123: Time and circumstances relevant to reopening credit contracts, consumer leases, or buy-back transactions, or

"When you can reopen unfair credit contracts or leases"

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

122Reopening credit contracts involved in arrangement

  1. The court may reopen all or any of the credit contracts involved in an arrangement if,—

  2. with the knowledge of the creditor under a reopened credit contract,—
    1. credit provided under the reopened credit contract is used (in whole or in part) to pay amounts owing under another credit contract or other credit contracts; or
      1. amounts owing under the reopened credit contract were paid from credit provided under another credit contract or other credit contracts; and
      2. the creditors under the credit contracts are either the same person or related companies.

        1. Subsection (1) applies whether or not the court considers that section 120(a) to (c) applies.

        Compare
        • s 10(3)