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Credit Contracts and Consumer Finance Act 2003

Miscellaneous provisions - Transitional provisions

142: Election for Act to apply

You could also call this:

"Choosing to use the new credit contract laws for old agreements"

Illustration for Credit Contracts and Consumer Finance Act 2003

You can choose for this Act to apply to a credit contract made before this section started. You can also choose for this Act to apply to any guarantee made with the credit contract from a certain date, called the effective date. This means the Act will apply from the effective date you choose. If you are a creditor, you cannot make this choice if it increases what the debtor has to do. The effective date must be after you make the choice. When you make this choice, you must tell the debtor or guarantor in writing within 5 working days. You must tell them that you have made this choice and that this Act applies from the effective date. This choice does not change things that happened before you made the choice. The old laws, the Credit Contracts Act 1981 and the Hire Purchase Act 1971, still apply to things that happened before your choice took effect.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213536.

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Topics:
Money and consumer rights > Consumer protection
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141A: Application, savings, and transitional provisions relating to amendments to Act, or

"Rules for when the law is changed"

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143: Continuing application of Credit Contracts Act 1981 and Hire Purchase Act 1971, or

"Old laws still apply to contracts made before this law started"

Part 6Miscellaneous provisions
Transitional provisions

142Election for Act to apply

  1. A creditor under a credit contract made before the commencement of this section may, after the commencement of this section, elect that this Act apply to the credit contract and any guarantee made in connection with the credit contract from a particular date (the effective date).

  2. A creditor must not make an election under subsection (1) if that election increases any obligation that the debtor has in connection with the credit contract.

  3. The effective date must be a date after the date that the election is made.

  4. If a creditor makes an election under subsection (1),—

  5. the Credit Contracts Act 1981 and the Hire Purchase Act 1971 do not apply to the credit contract or the guarantee from the effective date; and
    1. the creditor must, within 5 working days of the day that the election is made, notify the debtor or guarantor in writing—
      1. that the creditor has made an election under this section; and
        1. that this Act applies to the credit contract or guarantee from the effective date; and
        2. the election does not affect the completion of a matter or thing, or the bringing or completion of proceedings that relate to a right, interest, title, immunity, or duty that existed immediately before the election takes effect; and
          1. the Credit Contracts Act 1981 and the Hire Purchase Act 1971 continue to have effect as if the election had not been made for the purpose of completing the matter or thing or the bringing or completion of proceedings that relate to a right, interest, title, immunity, or duty that existed immediately before the election takes effect.