Credit Contracts and Consumer Finance Act 2003

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

83ZM: Limit on creditor’s right to recover from debtor

You could also call this:

"You only pay the difference if goods you bought on credit are sold."

Illustration for Credit Contracts and Consumer Finance Act 2003

If you buy goods on credit and the creditor sells them, you only have to pay the difference between what you owed and what the goods sold for. This is according to section 83ZE and it applies when the goods are sold for less than what you owed. After the sale, the creditor cannot ask you for any more money, including interest payments. You do not have to pay any extra interest or fees, such as those under the Judicature Act 1908 or section 83ZE. If some goods are sold but not all, you still only have to pay the difference. No interest accrues on any unsold goods after the first item is sold. The creditor's right to recover money from you is limited to this amount. You are protected by this law when you buy goods on credit. The law is clear about what you have to pay.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6501406.

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

Topics:

Money and consumer rights > Consumer protection

83ZL: Debtor’s, etc, right to recover surplus, or

"Getting back extra money you don't owe"

83ZN: Consumer credit contract may not provide for security interest over certain consumer goods, or

"Lenders can't take certain personal items if you can't pay back a loan"

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

83ZMLimit on creditor’s right to recover from debtor

This section applies if—
consumer goods (or, where multiple goods are subject to the credit contract, any 1 or more of those goods) are sold under this subpart; and
the net proceeds of sale are less than the amount required to settle the contract under section 83ZE as at the date of the sale.

If this section applies, the debtor's liability to the creditor under the credit contract is limited to the difference between the amount required to settle the contract as at the date of the sale and the net proceeds of the sale.
To avoid doubt,—
after the sale, the creditor is not entitled to, and must not claim, any amounts in addition to the amount specified in subsection (2), including—
1. any further interest payments that would, had the sale not taken place, have been payable in respect of the credit contract; or
2. any interest under the Judicature Act 1908; or
3. any other payments that are in addition to the amount required to settle the contract under section 83ZE; and
if the sale is of 1 or more goods (but not all the goods) that are subject to the same credit contract, the debtor's liability to the creditor under the contract is the amount referred to in subsection (2); and
no interest payments or other payments accrue in respect of any unsold goods (whether or not they have been offered for sale and whether or not they are retained by the debtor) after the date of the sale of the first item under paragraph (b).

Compare

1997 No 85 s 35

Notes

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