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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Provisions relating to debtors under high-cost consumer credit contracts - Purpose, outline, and interpretation

45B: Outline of this subpart

You could also call this:

"Rules for Borrowing Money and What Happens if They're Broken"

Illustration for Credit Contracts and Consumer Finance Act 2003

This part of the law is about rules for certain credit contracts. You will find rules about the maximum costs of borrowing and restrictions on entering more contracts. The law also talks about the maximum rate of charge and not allowing compound interest. The law provides for things like compensation, statutory damages, and court orders if these rules are broken. You can find more information about these in sections like sections 93(a) and 96(1)(a). The law also mentions pecuniary penalties, which are explained in subpart 5A of Part 4. Other parts of the law, like section 48, also apply in some cases. You can also look at section 124(1)(ea) for guidelines on reopening credit contracts.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS352900.

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Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loans
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45A: Purpose of this subpart, or

"Protecting You from Harmful Debt"

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45C: Meaning of high-cost consumer credit contract, or

"What is a high-cost consumer credit contract?"

Part 2Consumer credit contracts
Provisions relating to debtors under high-cost consumer credit contracts: Purpose, outline, and interpretation

45BOutline of this subpart

  1. This subpart provides for rules about the following matters:

  2. the maximum costs of borrowing that are recoverable under certain high-cost consumer credit contracts and related consumer credit contracts:
    1. restrictions on entry into further high-cost consumer credit contracts:
      1. the maximum rate of charge that is recoverable under a high-cost consumer credit contract:
        1. no compound interest under high-cost consumer credit contracts.

          1. In relation to those matters, this Act provides for—

          2. compensation, other orders, or injunctions (see sections 93(a) and 96(1)(a)):
            1. statutory damages (see section 88):
              1. other court orders (see section 94):
                1. pecuniary penalties (see subpart 5A of Part 4).

                  1. In addition,—

                  2. section 48 applies in some cases:
                    1. see section 124(1)(ea) (guidelines for reopening credit contracts).

                      Notes
                      • Section 45B: inserted, on , by section 25 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).