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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Fees - Unreasonable fees

41A: Records and reviews about how fees calculated

You could also call this:

"Keeping records of how credit fees are calculated and making sure they are fair"

Illustration for Credit Contracts and Consumer Finance Act 2003

You need to keep records about how credit fees and default fees are calculated. These records must show that each fee is reasonable at the time it is calculated or reviewed. You can find more information about this in section 41. If something changes that might affect the reasonableness of a fee, you must review the fee. You must reduce the fee if it is no longer reasonable after the review. You must give the records to the Commission if they ask for them. You must also give records to a dispute resolution scheme if they ask for them and the records are about a contract that is in dispute. You must give the records within 20 working days of the request, or within a longer time if the Commission says so. The Commission can ask for records without using their special powers under section 98 of the Commerce Act 1986. You must keep the records for at least 7 years after the fee is calculated or reviewed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS626455.

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Topics:
Money and consumer rights > Consumer protection
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Part 2Consumer credit contracts
Fees: Unreasonable fees

41ARecords and reviews about how fees calculated

  1. The creditor under a consumer credit contract must keep records about how the creditor calculated each credit fee and default fee for the purposes of section 41.

  2. Those calculations must demonstrate that each credit fee and default fee is not unreasonable at the time at which the fee was calculated or reviewed.

  3. A creditor must—

  4. review a credit fee or a default fee if the creditor knows, or ought reasonably to know, that there has been a change that is likely to materially affect the reasonableness of the fee (for example, a change in the creditor’s business or costs); and
    1. reduce the fee if the result of the review is that the fee is now unreasonable.

      1. The creditor must make the records required by this section available to the Commission, on request by the Commission.

      2. The creditor must make available to a dispute resolution scheme, on request by that scheme, the records that relate to a contract that is the subject of a dispute under that scheme.

      3. The creditor must provide the records within 20 working days of the date on which the request is received by the creditor or, in the case of records being provided to the Commission, within any longer period of time specified by the Commission.

      4. The Commission does not need to use its powers under section 98 of the Commerce Act 1986 to make a request under subsection (4).

      5. The creditor must keep the records for a period of at least 7 years after the date on which the fee is calculated or reviewed.

      Notes
      • Section 41A: inserted, on , by section 24 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).