Building Societies Act 1965

Management and administration - Determination of disputes

108: General provisions as to disputes

You could also call this:

"Rules for solving disagreements in a building society"

When you have a disagreement with a building society, there are special rules about how to solve it. These rules apply when you disagree about something as a member of the society, but not when it's about a mortgage document or other contracts outside the society's rules.

There are specific ways to handle these disagreements, which are explained in other parts of the law (Sections 109 to 112). These methods only apply to the kinds of disagreements mentioned earlier, unless the society's rules say otherwise.

If the rules say a disagreement should be solved by arbitration (a special way of settling disputes), then usually a court can't decide on it. The court can only get involved in ways that these rules allow.

However, these rules don't stop you or the society from getting help through normal legal channels for issues with mortgages or other contracts that aren't part of the society's rules.

When the society's rules talk about 'disputes', they usually mean only the kind of disagreements we've talked about here, unless the rules clearly say something different.

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This page was last updated on 15 April 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM372094.

Topics:

Money and consumer rights > Banking and loansHousing and property > Buying and selling homes

107: Officers and auditors not to be exempted from liability, or

"Rules can't protect building society leaders from getting in trouble for their mistakes"

109: Determination of disputes by arbitration, or

"Settling arguments in building societies using outside help"

Part 7Management and administration
Determination of disputes

108General provisions as to disputes

This section applies to any dispute between a society and a member thereof, or a representative of a member, in his or her capacity as a member, in respect of any matter except the construction or effect of—
a mortgage instrument; or
any other contract contained in any document other than the society's rules.

Sections 109 to 112 shall have effect in respect of disputes to which this section applies, but, except so far as a society's rules otherwise expressly provide, shall not have effect in respect of any other dispute.
Where the provisions of those sections have effect, and in accordance therewith a dispute is to be determined by arbitration, no court shall have jurisdiction to determine it except so far as those provisions confer jurisdiction in that behalf.
Nothing in those sections shall prevent a society or any member thereof, or any person claiming through or under a member, from obtaining in the ordinary course of law any remedy in respect of any mortgage or in respect of any other contract, other than the society's rules, to which he or she or the society would otherwise be entitled by law.
Any reference in a society's rules to disputes shall, except so far as the rules otherwise expressly provide, be construed as referring, and as referring only, to disputes to which this section applies.

Compare

1908 No 18 s 2(2)
Building Societies Act 1962 s 93 (UK)

Notes

Section 108(3): amended, on 27 November 1970, by section 8(2)(b) of the Building Societies Amendment Act 1970 (1970 No 117).