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Credit Contracts and Consumer Finance Act 2003

Repossession of consumer goods under consumer credit contract - Prohibitions relating to security interest over certain consumer goods

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

You could also call this:

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

Illustration for Credit Contracts and Consumer Finance Act 2003

A consumer credit contract is an agreement where you borrow money to buy something. This contract may not include a security interest over certain goods like beds, cooking equipment, and medical equipment. You can find more information about consumer credit contracts in the Credit Contracts and Consumer Finance Act 2003. If you have a consumer credit contract, the creditor must make sure it does not break this rule. There are some exceptions, like if the goods are not for personal use. The creditor has to follow the rules to ensure the contract is fair. The law says creditors must comply with this section. They cannot include security interests over certain goods in the contract. This is to protect you as a consumer.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6501408.

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Topics:
Money and consumer rights > Consumer protection
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Part 3ARepossession of consumer goods under consumer credit contract
Prohibitions relating to security interest over certain consumer goods

83ZNConsumer credit contract may not provide for security interest over certain consumer goods

  1. A consumer credit contract may not provide for a security interest over—

  2. consumer goods of the following kind:
    1. beds and bedding:
      1. cooking equipment, including cooking stoves:
        1. medical equipment:
          1. portable heaters:
            1. washing machines:
              1. refrigerators:
              2. documents of the following kind:
                1. travel documents:
                  1. identification documents:
                    1. bank cards:
                    2. any other consumer goods, or documents, prescribed by regulations made under this Act.

                      1. Subsection (1)(a) and (c) do not prevent the consumer goods referred to in those paragraphs from being subject to a purchase money security interest.

                      2. Every creditor under a consumer credit contract must ensure that the contract does not contravene this section.

                      3. Nothing in this section prevents a security interest over a good specified in subsection (1)(a)(i) to (vi) that is not a consumer good (for example, a bed that is part of the inventory of a retailer).

                      Notes
                      • Section 83ZN: inserted, on , by section 51 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                      • Section 83ZN heading: amended, on , by section 29(1) of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).
                      • Section 83ZN(1): amended, on , by section 29(2) of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).
                      • Section 83ZN(3): amended, on , by section 29(2) of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).