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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

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

You could also call this:

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

Illustration for Credit Contracts and Consumer Finance Act 2003

You cannot enter into a high-cost consumer credit contract with a creditor if you have had two or more of these contracts in the last 90 days. A creditor will not break the law if they can prove they made reasonable inquiries about you before entering into the contract and they had good reason to believe you did not have two or more high-cost consumer credit contracts in the last 90 days. The creditor must have followed the rules in section 9C to make these inquiries.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS352915.

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Topics:
Money and consumer rights > Consumer protection
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45F: Certain high-cost consumer credit contracts with other creditors prohibited, or

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

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

45GHigh-cost consumer credit contracts with certain repeat debtors prohibited

  1. No creditor (C) may enter into a high-cost consumer credit contract with a debtor who has entered into 2 or more high-cost consumer credit contracts at any time within the preceding 90 days.

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

  3. C complied with section 9C in respect of the requirement to make reasonable inquiries; and
    1. C had reasonable grounds to believe that the debtor had not entered into 2 or more high-cost consumer credit contracts during the relevant period.

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