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Credit Contracts and Consumer Finance Act 2003

Miscellaneous provisions - Declarations about credit contracts and consumer credit contracts

137A: Class declarations about credit contracts and consumer credit contracts

You could also call this:

"Rules about what makes a credit contract"

Illustration for Credit Contracts and Consumer Finance Act 2003

The Governor-General can make rules about what is a credit contract. You need to know what a credit contract is to understand these rules. The Minister must recommend these rules and consider if they will harm consumers. The Minister must look at the economic substance of the arrangement and consult with people who will be affected. If the Minister makes a recommendation, they must publish their reasons. The rules can say what modifications apply to certain credit contracts. The Governor-General can also make rules about consumer credit contracts. You can find more information about how these rules are published in Part 3 of the Legislation Act 2019. These rules are used to help you understand what contracts are covered by the Credit Contracts and Consumer Finance Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS301509.

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Topics:
Money and consumer rights > Consumer protection
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137: Conflict of laws, or

"This law applies to credit contracts that follow New Zealand rules."

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137B: Declarations about particular arrangements or facilities, or

"When the Minister says some deals are not credit contracts"

Part 6Miscellaneous provisions
Declarations about credit contracts and consumer credit contracts

137AClass declarations about credit contracts and consumer credit contracts

  1. The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:

  2. declaring that any class of arrangements or facilities are not credit contracts:
    1. declaring any class of arrangements or facilities that has, or is intended to have, the effect of a person receiving a loan, or goods or services with deferred payment, to be consumer credit contracts:
      1. declaring any class of consumer credit contracts to be high-cost consumer credit contracts or related consumer credit contracts for the purposes of subpart 6A of Part 2 (provisions relating to debtors under high-cost consumer credit contracts).

        1. A power in this section to make regulations may be used only on the recommendation of the Minister, and the Minister may make a recommendation only if the Minister—

        2. is satisfied, in the case of subsection (1)(a), that the declaration—
          1. is necessary or desirable to promote certainty about whether this Act applies; and
            1. is not inconsistent with the purposes of this Act set out in section 3; and
              1. would not cause significant detriment to consumers; and
              2. is satisfied, in the case of subsection (1)(b), that the regulations are necessary or desirable in order to promote the purposes of the Act set out in section 3; and
                1. is satisfied, in the case of subsection (1)(c), that the regulations are necessary or desirable in order to promote the purpose of subpart 6A of Part 2; and
                  1. has had regard to the economic substance of the relevant arrangement or facility; and
                    1. has consulted the persons or representatives of the persons who the Minister considers will be substantially affected by the regulations.

                      1. If the Minister makes a recommendation, the Minister’s reasons for making the recommendation (including why the declaration is appropriate) must be published together with the regulations.

                      2. If a declaration is made under subsection (1)(b) or (c), this Act applies with any modifications specified in the regulations and with all other necessary modifications.

                      3. Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                      Notes
                      • Section 137A: inserted, on , by section 52 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).
                      • Section 137A(5): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).