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Credit Contracts and Consumer Finance Act 2003
Reopening of oppressive credit contracts, consumer leases, and buy-back transactions
123: Time and circumstances relevant to reopening credit contracts, consumer leases, or buy-back transactions

Part 1:
Preliminary provisions

2Commencement 3Purposes 4Overview 5Interpretation 6Meaning of credit 7Meaning of credit contract 8Meaning of buy-back transaction 8AMeanings of associated and associated person 8BProvisions affecting application of amendments to this Act 8CStatus of examples 9Act binds the Crown

Part 1A:
Lender responsibilities

9AOutline of Part

Part 2:
Consumer credit contracts

Application

10When this Part applies 11Meaning of consumer credit contract 12Investment purposes 13Presumption relating to consumer credit contract 14Effect of declaration 15Certain contracts not consumer credit contracts 15APart does not apply to pawnbroking contract 16Lease of goods treated as consumer credit contract 16AMobile trader credit sales treated as consumer credit contract

Required disclosure

Initial disclosure

17Initial disclosure

Continuing disclosure

18Continuing disclosure 19Content of continuing disclosure statement 20Opening unpaid balance must not exceed closing unpaid balance of previous continuing disclosure statement 21Continuing disclosure not required

Variation disclosure

22Disclosure of agreed changes 23Disclosure of changes following exercise of power

Request and guarantee disclosure

24Request disclosure 25Disclosure of guarantee 26Disclosure of changes to guarantors 26ADisclosure of transfer of rights of creditor under consumer credit contract 26BDisclosure about dispute resolution schemes and financial mentoring services: hardship applications, arrears, credit declined, and complaints

Debtor's right to cancel

27Right to cancel consumer credit contract 28Notice of cancellation, return of property, and payment of cash price 29Right of cancellation does not apply in certain situations 30Effect of cancellation 31Effect of credit sale cancellation

Disclosure standards and how disclosure is made

32Disclosure standards 33Assumptions 34Creditor, etc, may voluntarily use model disclosure statement if not required to use mandatory form 35How disclosure is made

Interest charges

36End of day 37Creditor to ensure that contract specifies annual interest rate or rates 38Early debit or payment of interest charges prohibited 39Limit on interest charges 40Default interest charges

Fees

Unreasonable fees

41Unreasonable credit fee or default fee 41ARecords and reviews about how fees calculated 42Establishment fees 43Prepayment fees 44Credit fees other than establishment fees and prepayment fees 44ADefault fees 44BCompliance with Code is evidence that fees are not unreasonable

Fees or charges passed on by creditor

45Fees or charges passed on by creditor

Provisions relating to debtors under high-cost consumer credit contracts

Purpose, outline, and interpretation

45APurpose of this subpart 45BOutline of this subpart 45CMeaning of high-cost consumer credit contract 45DPower to increase interest rate that defines high-cost consumer credit contract

Rules

45ECosts of borrowing must not exceed loan advance 45FCertain high-cost consumer credit contracts with other creditors prohibited 45GHigh-cost consumer credit contracts with certain repeat debtors prohibited 45HRate cap 45ICompound interest prohibited 45JDefault fees 45KProhibition on avoidance

Review of subpart

45LReview of subpart

Payments

46Crediting of payments 47Dating and adjustments of debits and credits in accounts 48Recovery of payments

Prepayments

49Part prepayments 50Debtor's right to full prepayment 51Amount required for full prepayment 52Rebate of insurance 52ARebate of repayment waiver 52BRebate of extended warranty 53Termination of consumer credit insurance contract 54Creditor's loss arising from full prepayment

Changes on grounds of unforeseen hardship

55Changes on grounds of unforeseen hardship 56Changes that can be made 57Application may not be made in certain circumstances 57AObligations of creditor in relation to application 58Changes by court 59Creditor may apply for variation of change 59AHow notices may be given

Duty of directors and senior managers of creditors under consumer credit contracts

59BDuty of directors and senior managers of creditors

Part 3:
Consumer leases, credit-related insurance, and buy-back transactions of land

Consumer leases

60Consumer leases 61Presumption relating to consumer lease 62Declaration concerning consumer lease

Disclosure of consumer lease

63Application of disclosure provisions 64Initial disclosure of consumer lease 65Variation disclosure of consumer leases 66Variation disclosure not required 67Request disclosure for consumer leases

Amount payable on termination

68Amount payable on termination

Credit-related insurance, repayment waivers, and extended warranties

69Restrictions on credit-related insurance, repayment waivers, and extended warranties 70Disclosure of credit-related insurance, repayment waiver, or extended warranty

Buy-back transactions of land

71Application of disclosure provisions 72Initial disclosure of buy-back transaction 73Independent legal advice must be given to occupier 74Buy-back transactions involving buy-back promoter 75Land cannot be dealt with without leave of court if initial disclosure not made or no independent legal advice given 76Interest of occupier is caveatable interest 77Variation disclosure of buy-back transactions 78Variation disclosure not required 79Request disclosure for buy-back transactions 80Unreasonable buy-back fees or buy-back default fees 81Fees or charges passed on by transferee 82Unreasonable fees payable to buy-back promoter or associated person 83No limit on Part 2

Part 3A:
Repossession of consumer goods under consumer credit contract

Preliminary provisions

83AOutline of Part 83BReferences to consumer credit contracts include security agreements 83CApplication of Part 83DPart does not create right to repossess, etc

Rules that apply before repossession

83ECircumstances in which creditor can repossess consumer goods 83FDuty to ensure goods are specifically identified 83GCreditor must serve repossession warning notice on debtor and other persons before taking possession of consumer goods 83HDebtor may voluntarily deliver consumer goods 83IRules relating to accessions (goods that are installed in, or affixed to, other goods)83JEffect of debtor's complaint or application on grounds of unforeseen hardship on creditor's rights to enforce credit contract 83KSubsequent complaints

Disabling devices

83LUse of disabling device 83MConnection or use of disabling device in connection with certain goods prohibited

Rules that apply at time of repossession

83NCreditor must allow debtor time to remedy default or at least 15 days to elapse 83ODocuments to be produced on entry 83PEntry if occupier not present 83QCreditor must exercise right to enter premises in accordance with lender responsibility principles 83RCreditor must not enter premises if complaint not resolved or unforeseen hardship application not decided 83SCreditor must not enter residential premises at certain times 83TRestrictions applying in relation to persons repossessing consumer goods

Rules that apply after repossession of consumer goods

83UInterpretation 83VNotice to be given to debtor, guarantor, and other creditors after repossession of consumer goods 83WCreditor must not sell consumer goods until 15 days after post-repossession notice 83XConsequences of selling within 15 days of post-repossession notice 83YCreditor must offer consumer goods for sale 83ZRules relating to sale by creditor 83ZADebtor may obtain valuation of consumer goods before sale 83ZBDebtor’s right to reinstate credit contract 83ZCConsequences of reinstating credit contract 83ZDDebtor’s right to introduce buyer 83ZEDebtor’s right to settle credit contract 83ZFDebtor’s right to force sale 83ZGDisposal of consumer goods to purchaser for value and in good faith 83ZHExtinguishment of creditor’s security interest and subordinate security interests on sale 83ZICreditor to give statement of account to debtor, guarantor, and other interested persons 83ZJDistribution of surplus 83ZKSurplus may be paid into court 83ZLDebtor’s, etc, right to recover surplus 83ZMLimit on creditor’s right to recover from debtor

Prohibitions relating to security interest over certain consumer goods

83ZNConsumer credit contract may not provide for security interest over certain consumer goods 83ZOContravening provision of no effect 83ZPExclusion for fixtures

Miscellaneous provisions

83ZQService of notices 83ZRPart does not limit application of rules relating to conduct of servants or agents

Part 4:
Enforcement and remedies

Preliminary provisions

84Compliance programmes

Jurisdiction

85Jurisdiction of High Court 86Jurisdiction of District Court 87Jurisdiction of Disputes Tribunal 87AJurisdiction of dispute resolution schemes

Statutory damages

88Creditors, creditors' agents, lessors, transferees, and buy-back promoters liable for statutory damages 89Amount of statutory damages 90Enforcement of statutory damages 91Court may reduce statutory damages 92Guidelines for reducing statutory damages

Orders, injunctions, and prohibited enforcement

Court's general power to make orders

93Court's general power to make orders 94Court orders 94ACourt orders in relation to repossessions 95Miscellaneous provisions concerning court's general power to make orders 95ACourt may reduce effect of failure to make disclosure 95BGuidelines for reducing effect of failure to make disclosure

Injunctions

96Injunctions 97Injunctions restraining conduct of particular kind 98Interim injunction

Compliance and similar orders

98ACompliance orders 98BOrder to disclose information or publish advertisement

Prohibited enforcement

99Enforcement of consumer credit contract prohibited 99AEnforcement of rights of repossession, etc, prohibited 99BEnforcement prohibited if creditor unregistered 100Enforcement of guarantee prohibited 101Enforcement of consumer lease prohibited 102Enforcement of buy-back transaction prohibited

Offences

102AInfringement offences 103Other offences 104Conviction for 2 or more offences 105When proceedings may be commenced 105AInfringement fee, etc, defined 105BInfringement offence alleged 105CIssue of infringement notice 105DProcedural requirements for infringement notices 105EWhat Commission does with infringement fees 105FRegulations relating to infringement offences

Defence

106Reasonable mistake defence 107Relevance of compliance programme

Pecuniary penalties

107APecuniary penalties 107BProceedings for pecuniary penalties 107CRelationship between pecuniary penalties and criminal liability 107DRestriction on indemnities 107ERestriction on insurance

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 109Who may apply and nature of order 110Costs

Application of Commerce Act 1986 and provisions relating to Commerce Commission

111Role and functions of Commission under this Act 112Commission's rights to appear and adduce evidence 113Application of Commerce Act 1986 114Additional proceedings 115Disposal of things seized 116Court order for disposal of things seized to be suspended on conviction 116AAARequirement for annual return

Miscellaneous

116ADirectors and senior managers may also be liable for statutory damages or compensation

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

117Application of Part 118Meaning of oppressive 119Collateral contracts and linked transactions 120Reopening of credit contracts, consumer leases, and buy-back transactions 121Refusal to agree to early termination, variation, or waiver 122Reopening credit contracts involved in arrangement 123Time and circumstances relevant to reopening credit contracts, consumer leases, or buy-back transactions 124Guidelines for reopening credit contracts, consumer leases, and buy-back transactions 125When reopening proceedings may be commenced 126Evidence 127Power of court on reopening credit contract, consumer lease, or buy-back transaction 128Costs in consumer cases 129Persons who share in profits or have beneficial interest in reopened credit contract, consumer lease, or buy-back transaction 130Time of exercise of court's powers 131No limit on sections 41, 80, and 82

Part 5A:
Certification and fit and proper person requirements

131AInterpretation for this Part

Requirement for certification

131BWhen person needs to be certified 131CExemptions from need for certification 131DProhibitions on holding out that person is certified

Issue of certifications

131ECommission may issue certification 131FApplication for certification 131GWhen certification must be issued 131HProcedural requirements 131INotice of decision 131JCommission must send certification details to Registrar

Conditions of certification

131KConditions of certification 131LWhen Commission may impose conditions 131MCertified person may apply for variation of conditions 131NProcedure for variation of conditions

Expiry, suspension, or cancellation of certifications

131ODuration of certification 131PWhen Commission may suspend or cancel certification 131QProcedural requirements on suspension or cancellation of certification

Changes relating to certified persons

131RDuty to notify changes

Other provisions about certifications

131SAppeals against certification decisions 131TFees, charges, and costs in connection with this subpart

Part 6:
Miscellaneous provisions

132Provisions relating to assignment of credit contracts, consumer leases, or buy-back transactions 132ADisclosure about debt collection 133Changes, deferrals, or postponements under credit contracts and consumer leases 134Right to set-off 135No contracting out 136Application of law relating to illegal contracts 137Conflict of laws

Declarations about credit contracts and consumer credit contracts

137AClass declarations about credit contracts and consumer credit contracts 137BDeclarations about particular arrangements or facilities 137CGeneral provisions about all declarations

Regulations

138Regulations

Acts amended and repealed

139Acts amended 140Repeal of Credit Contracts Act 1981 and Hire Purchase Act 1971

Transitional provisions

141Transitional provision 141AApplication, savings, and transitional provisions relating to amendments to Act 142Election for Act to apply 143Continuing application of Credit Contracts Act 1981 and Hire Purchase Act 1971

Schedule 1AA:
Application, savings, and transitional provisions relating to amendments made to this Act after 1 January 2014

Schedule 1:
Key information concerning consumer credit contract

Schedule 2:
Information concerning consumer lease

Schedule 3:
Information concerning buy-back transactions of land

Schedule 3A:
Key information concerning repossession warning notice

Schedule 3B:
Key information concerning post-repossession notice

Schedule 4:
Acts amended

Summary of changes

Credit Contracts and Consumer Finance Act 2003

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

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

You could also call this:

"When you can reopen unfair credit contracts or leases"

Illustration for Credit Contracts and Consumer Finance Act 2003

You can reopen a credit contract, consumer lease, or buy-back transaction if it is oppressive. A contract, lease, or transaction is not oppressive if it was fair at the time it was made. It also depends on the circumstances when it was made or performed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213513.

This page was last updated on 1 January 2026 — View changes

Topics:

Money and consumer rights > Consumer protection

122: Reopening credit contracts involved in arrangement, or

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

124: Guidelines for reopening credit contracts, consumer leases, and buy-back transactions, or

"Rules for Checking if a Loan or Credit Deal is Fair"

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

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

A credit contract, a consumer lease, a buy-back transaction, a term of a credit contract, a consumer lease, or a buy-back transaction, or an act performed under, or in connection with, a credit contract, a consumer lease, or a buy-back transaction is not oppressive if the contract, lease, transaction, term, or act would not have been considered oppressive at the time, and in the circumstances, that it was made or performed.

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s 11(1)