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Consumer Guarantees Act 1993

Supply of services - Provisions relating to cancellation

39A: Services subject to collateral credit agreement

You could also call this:

“Rules for cancelling a service you bought with a special payment plan”

When you buy a service and use a special credit agreement to pay for it, there are some rules you need to know. This is important if you decide to cancel the service.

If you cancel a service that you bought using a special credit agreement, a court or the Disputes Tribunal can decide that the service provider should take over your rights and responsibilities from the credit agreement.

A special credit agreement is when someone else, not the service provider, gives you credit to pay for the service. The service provider arranges this agreement for you.

The service provider doesn’t include someone who lends you money if you’re using that loan to pay for the service, and if the loan was arranged by the person who sold you the service.

These rules don’t replace other rules about cancelling services. They work together with those other rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5840611.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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Part 4 Supply of services
Provisions relating to cancellation

39AServices subject to collateral credit agreement

  1. This section applies if—

  2. a consumer acquires services under a contract for the supply of services; 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 cancel the contract for the supply of the services 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 services, means a contract or an agreement that—

            1. is arranged or procured by the supplier of the services; 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 services

                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 services 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 services.

                1. This section does not limit section 39.

                Notes
                • Section 39A: inserted, on , by section 11 of the Consumer Guarantees Amendment Act 2013 (2013 No 144).
                • Section 39A(2): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).