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Credit Contracts and Consumer Finance Act 2003

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

83G: Creditor must serve repossession warning notice on debtor and other persons before taking possession of consumer goods

You could also call this:

"Lenders must give debtors a warning notice before taking back goods they own."

Illustration for Credit Contracts and Consumer Finance Act 2003

If you are a creditor wanting to repossess consumer goods, you must serve a repossession warning notice on the debtor and other people before taking the goods. You must serve this notice on the debtor, the guarantor, and other people who have a security interest in the goods, such as those who have registered a financing statement. The notice must be in writing, contain key information, and be served at least 15 days before repossession. You must also serve the notice on people mentioned in section 129(1) of the Personal Property Securities Act 1999 if section 83I(1) applies. The notice must include information from Schedule 3A and any other prescribed information. The repossession warning notice expires 60 days after it is served, and after that, you cannot repossess the goods based on that notice. However, you can serve another notice if you want to repossess the goods later. There are some exceptions, such as when the goods are at risk, as described in section 83E(2).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6501345.

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Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loansBusiness > Industry rules
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83F: Duty to ensure goods are specifically identified, or

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

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83H: Debtor may voluntarily deliver consumer goods, or

"You can give back goods to the creditor if you want to, after getting a repossession warning."

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

83GCreditor must serve repossession warning notice on debtor and other persons before taking possession of consumer goods

  1. Every creditor intending to repossess consumer goods must, before repossessing those goods, serve a notice (a repossession warning notice) on—

  2. the debtor; and
    1. every guarantor of the debtor in respect of the relevant credit contract; and
      1. if section 83I(1) applies, each of the persons referred to in section 129(1) of the Personal Property Securities Act 1999; and
        1. every person who—
          1. is known by the creditor to have a security interest in the consumer goods; or
            1. has registered a financing statement in the name of the debtor that refers to the consumer goods; or
              1. has registered a financing statement containing the serial number of the consumer goods as required or authorised by regulations made under the Personal Property Securities Act 1999.

              2. However, subsection (1) does not apply if the goods are at risk (see section 83E(2)).

              3. The repossession warning notice must—

              4. be in writing; and
                1. contain as much of the key information set out in Schedule 3A as is applicable to the credit contract; and
                  1. include any additional prescribed information; and
                    1. be in the prescribed form (if any); and
                      1. be served on the debtor at least 15 days before repossession occurs; and
                        1. if the default is capable of being remedied, give the debtor at least 15 days before repossession occurs to remedy the default.

                          1. A repossession warning notice expires 60 days after it has been served on the debtor and, after that time,—

                          2. the notice is of no effect; and
                            1. the creditor has no right to repossess the goods in reliance upon that notice.

                              1. Any period during which the creditor is prevented from taking or continuing any enforcement action under section 83J must be excluded when determining whether a repossession warning notice has expired under subsection (4).

                              2. Nothing in subsection (4) prevents a creditor from serving a further repossession warning notice that complies with this section.

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                              Notes
                              • Section 83G: inserted, on , by section 51 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).