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Consumer Guarantees Act 1993

Miscellaneous provisions - General provisions

46: Liability of assignees and creditors

You could also call this:

“Who has to pay if there's a problem with something you bought”

When someone buys something from a supplier, there are rules about who is responsible if there’s a problem. If the supplier gives their rights to someone else (called an assignee), that person can only be made to pay back what you still owe on your purchase.

If you borrow money from a creditor and use the thing you bought as security, the creditor can only be made to pay back what you still owe on your loan.

If the assignee or creditor has to pay because of these rules, they can ask the supplier to pay them back for their losses, unless they have a different agreement.

Even if the supplier gives their rights to someone else, you can still use your rights against the supplier if there’s a problem with what you bought.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM312867.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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Part 5 Miscellaneous provisions
General provisions

46Liability of assignees and creditors

  1. The liability under this Act of an assignee of the rights of a supplier under a contract of supply shall not exceed the amount owing by the consumer under the contract at the date of the assignment.

  2. The liability under this Act of a creditor who has lent money on the security of goods supplied to a consumer shall not exceed the amount owing by the consumer at the date of the loan.

  3. Where the assignee referred to in subsection (1), or the creditor referred to in subsection (2), suffers any losses because of a liability to the consumer under this Act, the assignee or creditor shall, subject to any agreement with the supplier, be entitled to be indemnified by the supplier against those losses.

  4. No assignment of the rights under a contract of supply shall affect the exercise of any right or remedy given by this Act against the supplier.

Compare
  • 1971 No 147 s 18
Notes
  • Section 46 heading: amended, on , by section 139 of the Credit Contracts and Consumer Finance Act 2003 (2003 No 52).
  • Section 46(2): amended, on , by section 139 of the Credit Contracts and Consumer Finance Act 2003 (2003 No 52).
  • Section 46(3): amended, on , by section 139 of the Credit Contracts and Consumer Finance Act 2003 (2003 No 52).