Credit Contracts and Consumer Finance Act 2003

Repossession of consumer goods under consumer credit contract - Rules that apply before repossession

83E: Circumstances in which creditor can repossess consumer goods

You could also call this:

"When a lender can take back goods you bought with a loan"

Illustration for Credit Contracts and Consumer Finance Act 2003

You can't repossess consumer goods unless the debtor has not done what they said they would do in the credit contract, or the goods are at risk. The goods are at risk if the creditor thinks they might be destroyed, damaged or sold in a way that goes against the credit contract. You must follow the rules in this Part and the lender responsibility principles in Part 1A before repossessing the goods.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6501341.

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

Topics:

Money and consumer rights > Consumer protection

83D: Part does not create right to repossess, etc, or

"This law does not let people take back goods or enter homes without permission."

83F: Duty to ensure goods are specifically identified, or

"Lenders must clearly describe goods in a loan contract so they can be easily identified."

Part 3ARepossession of consumer goods under consumer credit contract
Rules that apply before repossession

83ECircumstances in which creditor can repossess consumer goods

Neither a creditor nor a creditor's agent may repossess consumer goods, unless—
either—
1. the debtor is in default under the credit contract; or
2. the goods are at risk; and
the creditor has, before repossessing the goods, fully complied with requirements imposed on the creditor under this Part that must be complied with before the goods are repossessed; and
the creditor complies, in relation to the repossession, with the lender responsibility principles set out in Part 1A that are relevant to the repossession.

In this Part, consumer goods are at risk if the creditor believes, on reasonable grounds, that those goods have been, or will be, destroyed, damaged, endangered, disassembled, removed, concealed, sold, or otherwise disposed of contrary to the provisions of the relevant credit contract.
However, consumer goods are not at risk merely because another creditor has, in relation to those consumer goods, given the debtor a repossession warning notice.
In any case where it is necessary to decide whether the goods were, or are, at risk, the creditor has the onus of proving that the grounds relied on were, or are, reasonable.

Compare

1997 No 85 s 7

Notes

Section 83E: inserted, on 6 June 2015, by section 51 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).