Credit Contracts and Consumer Finance Act - An Introduction for Creditors

This Topic Includes:

PDF version
Other resources of interest
Legislation information
Disclaimer
 

This Business Note introduces credit providers (creditors) to the Credit Contracts and Consumer Finance Act 2003 (the Act).

The Act’s sections that cover buy-back of land transactions took effect from 14 October 2003, while all other parts of the Act take effect on 1 April 2005. The Act repeals the Credit Contracts Act 1981 and the Hire Purchase Act 1971. After April 1 2005, creditors can choose to switch all existing credit contracts to comply with the Act.

Buy-back of land transactions

This information does not cover the section of the Act relating to buy-back of land transactions. More information on this is available in the Consumer Information section.

CCCFA Regulations

The full content of the Regulations prescribing the two prepayment formulas and model disclosure forms are available now in PDF format on the CCCFA Regulations page.

Contents

Overview: key terms and definitions and contents in the Act, key changes.

Disclosure requirements: initial, request, modification and guarantee disclosure

Consumer leases: what is a consumer lease, what part of the CCCFA applies to consumer leases

Debtor's purpose: debtor's purpose in entering into the contract - for personal or business reasons

Cancellation of credit contract: format and rules for cancelling contract

Credit-related insurance

Calculation of fees, charges and interest

Early prepayment

Hardship provisions

Oppressive conduct

PDF of publication

Introduction for Creditors - CCCFA Act 2003 is available in PDF format (154 KB). Instructions for obtaining the Adobe Acrobat viewer.

Other publications for Business

Commerce Commission publication

A  publication by the Commerce Commission will provide information on penalties and remedies. It covers issues such as what happens if you do not disclose information as required by the Act.

Hire purchase 

Business Note – Hire Purchase – A Guide for Retailers 

This is a guide for hire purchase or conditional sales contracts entered into before 1 April 2005.

Please note a new Business Note Credit Sales - A guide for retailers has been released - a PDF format version (533 KB) of this publication is available. ( Instructions for obtaining the Adobe Acrobat viewer.) This publication will replace the Hire Purchase guide for all credit sales entered from 1 April 2005, the date the Credit Contracts and Consumer Finance Act takes effect.

The  Business Note for Retailers -  Credit Sales is available in hard copy by placing an order in the publications section.

Publications for Consumers

Factsheet – Home Buy-back Schemes

Legislation

Copies of the Acts mentioned in this information can be accessed online, for free, at www.legislation.govt.nz. 

Printed copies are sold by Bennetts Bookshops and some Whitcoulls stores.

Bennetts Bookshop in Wellington carries all legislation and provides a mail service throughout the country.

Contact Bennetts Bookshop by phone, 04 499 3433, or by fax, 04 499 3375.

Disclaimer

The purpose of this Business Note is to provide a general explanation on the law relating to credit contracts and consumer finance.

It is not intended as a source of specialist legal advice.

You may wish to contact a lawyer for further advice.

The Ministry does not accept any responsibility for the manner in which this information is interpreted or for the consequences of relying on it.