Credit Contracts and Consumer Finance Act 2003

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

125: When reopening proceedings may be commenced

You could also call this:

"When You Can Restart a Court Case About a Credit Contract"

Illustration for Credit Contracts and Consumer Finance Act 2003

You can start a court case to reopen a credit contract, consumer lease, or buy-back transaction at certain times. You can do this if you are the Commission, a party to the contract, or a guarantor. The time you can start the case depends on the type of contract. You can start the case at any time before a certain deadline. For a buy-back transaction, the deadline is 3 years after the last payment was due. For a contract or lease that has ended, the deadline is 1 year after it ended. For other cases, the deadline is 1 year after the last payment was due. If you used credit from one contract to pay for another, you might be able to start the case at a different time. This can happen if the creditor knew about the other credit contract and the creditors are related companies. In this case, you can start the court case at any time before 1 year after the last payment was due for any of the contracts. The Commission can start a court case on your behalf. This rule applies even if there are other laws that say something different. You cannot start a court case to reopen a credit contract, consumer lease, or buy-back transaction at any other time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213515.

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

Topics:

Money and consumer rights > Consumer protection

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

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

126: Evidence, or

"What other options were available to you when you signed a contract"

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

125When reopening proceedings may be commenced

Proceedings seeking the reopening of a credit contract, consumer lease, or buy-back transaction may be commenced in the court by the Commission, any party to the contract, lease, or transaction, or any guarantor under a guarantee relating to the credit contract, at any time earlier than,—
in the case of a buy-back transaction, 3 years after the due date for the performance of the last obligation required to be performed under the transaction; or
in the case of a contract or lease that is terminated by either party, 1 year after the date on which the contract or lease is terminated; or
in any other case, 1 year after the due date for the performance of the last obligation required to be performed under the contract or lease.

However, subsection (3) applies if,—
with the knowledge of the creditor under a credit contract,—
1. the credit provided under the contract is used (in whole or in part) to pay amounts owing under another credit contract or other credit contracts; or
2. amounts owing under the contract were paid from credit provided under another credit contract or other credit contracts; and
the creditors under the credit contracts are either the same person or related companies.

Proceedings seeking the reopening of all or any of the credit contracts referred to in subsection (2) may be commenced at any time earlier than 1 year after the due date for the performance of the last obligation required to be performed under any of those contracts.
Proceedings seeking the reopening of a credit contract, consumer lease, or buy-back transaction may not be commenced at any other time.
The Commission may commence proceedings on behalf of a person or a class of persons.
This section applies despite any other enactment or rule of law.

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