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Consumer Guarantees Act 1993

Right of redress against suppliers in respect of supply of goods - Provisions relating to rejection of goods

23A: Goods subject to collateral credit agreement

You could also call this:

“What happens when you buy things using a special credit deal set up by the seller”

You need to know about what happens when you buy goods using a special type of credit agreement. This applies when you get goods from a supplier and use a credit agreement that the supplier helped set up, but the credit comes from someone else. If you decide to reject the goods because they don’t meet the guarantees in this law, a court or the Disputes Tribunal can decide that some or all of your responsibilities under the credit agreement should be moved to the supplier instead.

The credit agreement we’re talking about here is called a “collateral credit agreement”. This is when the supplier arranges for someone else to give you credit so you can buy the goods or pay for them later.

It’s important to know that “supplier” doesn’t mean the person who lent you money if you got a loan to buy the goods, as long as the loan wasn’t arranged by the person who sold you the goods.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5840604.

Topics:
Money and consumer rights > Consumer protection
Money and consumer rights > Banking and loans
Business > Fair trading
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Part 2 Right of redress against suppliers in respect of supply of goods
Provisions relating to rejection of goods

23AGoods subject to collateral credit agreement

  1. This section applies if—

  2. a consumer acquires goods under a contract for the supply of goods; and
    1. the contract is associated with a collateral credit agreement; and
      1. the supplier is a party to the contract; and
        1. the consumer exercises the right to reject the goods under this Act.

          1. A court or the Disputes Tribunal may order that all or any of the rights and obligations of the consumer under the collateral credit agreement vest in the supplier.

          2. In this section,—

            collateral credit agreement, in relation to a contract for the supply of goods, means a contract or an agreement that—

            1. is arranged or procured by the supplier of the goods; and
              1. is for the provision of credit by a person other than the supplier to enable the consumer to pay, or defer payment, for the goods

                supplier does not include a creditor within the meaning of the Credit Contracts and Consumer Finance Act 2003 who has lent money to a consumer, if the whole or part of the price of the goods is to be paid out of the proceeds of the loan and if the loan was arranged by a person who, in trade, supplied the goods.

                Notes
                • Section 23A: inserted, on , by section 10 of the Consumer Guarantees Amendment Act 2013 (2013 No 144).
                • Section 23A(2): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).