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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Provisions relating to debtors under high-cost consumer credit contracts - Rules

45F: Certain high-cost consumer credit contracts with other creditors prohibited

You could also call this:

"No high-cost loans if you already owe money to another lender."

Illustration for Credit Contracts and Consumer Finance Act 2003

You cannot enter into a high-cost consumer credit contract with a creditor if you already owe money on a similar contract with a different creditor. You also cannot enter into a high-cost consumer credit contract with a creditor if you had an unpaid balance on a similar contract with a different creditor in the last 15 days. A creditor can defend themselves if they can prove they made reasonable inquiries and had good reason to believe you did not owe money on a similar contract with a different creditor, as required by section 9C.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS352910.

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Topics:
Money and consumer rights > Consumer protection
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45E: Costs of borrowing must not exceed loan advance, or

"You can't pay back more in costs than you first borrowed"

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45G: High-cost consumer credit contracts with certain repeat debtors prohibited, or

"No high-cost loans if you've had two in 90 days."

Part 2Consumer credit contracts
Provisions relating to debtors under high-cost consumer credit contracts: Rules

45FCertain high-cost consumer credit contracts with other creditors prohibited

  1. No creditor (C) may enter into a high-cost consumer credit contract with—

  2. a debtor who has an unpaid balance on any high-cost consumer credit contract under which the creditor is a person other than C; or
    1. a person who has had, at any time within the preceding 15 days, an unpaid balance on any high-cost consumer credit contract under which the creditor is a person other than C.

      1. A creditor (C) has a defence in connection with a breach of this section if C proves that, before entering into the contract,—

      2. C complied with section 9C in respect of the requirement to make reasonable inquiries; and
        1. C had reasonable grounds to believe that during the relevant period the person did not have an unpaid balance on any high-cost consumer credit contract under which the creditor is a person other than C.

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