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Credit Contracts and Consumer Finance Act 2003

Miscellaneous provisions

134: Right to set-off

You could also call this:

"Using money you are owed to reduce your debt"

Illustration for Credit Contracts and Consumer Finance Act 2003

You have the right to set-off certain amounts. A creditor, lessor, or transferee can set-off what you are owed against what you owe them. This can include statutory damages or amounts ordered under section 93 or 94A. You need to know that the court can make orders that affect this right. The creditor, lessor, or transferee must follow any court orders. This means the court's orders come first. The amount you owe can be reduced by the amount you are owed. This is how set-off works in relation to credit contracts and consumer finance. The court's orders are important in this process.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213525.

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Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loans
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Part 6Miscellaneous provisions

134Right to set-off

  1. A creditor, lessor, or transferee may set-off any entitlement of a debtor, guarantor, lessee, or occupier to statutory damages or to an amount that must be paid to a debtor, guarantor, lessee, or occupier under an order made under section 93 or 94A against any amount otherwise owing by the debtor, guarantor, lessee, or occupier to the creditor, lessor, or transferee.

  2. Subsection (1) is subject to any order of the court.

Notes
  • Section 134(1): amended, on , by section 75 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).