Credit Sales

This Topic Includes:
PDF of publication/ordering publication
Contents
Terminology in this guide
Other legislation
Disclaimer

The guide introduces retailers, who sell goods on credit, to “credit sales”, a new term in the Credit Contracts and Consumer Finance Act 2003 (the Act) to describe agreements usually called “hire purchase” or “conditional sales”. It also outlines their obligations as creditors under the Act.

PDF of publication/Ordering publication

The guide is now available online in PDF format (533 KBs). Instructions for obtaining the Adobe Acrobat viewer. The printed booklet can also be ordered using our online Publications Form.

Contents

The complete content of the guide is available online by chapter.  In each chapter page there are Other Topics links to all other chapters, as well as links back to this index page.  These pages all contain External links to the Commerce Commission (the agency which enforces the Act) and Legislation Online (where you can access the Act online at no charge).

Overview
Credit sales contract
Right to cancel
Faulty goods
Credit-related insurance
Interest charges, fees and payments
Change of circumstances
Consumer leases
Penalties and enforcement
Repossession
Other related laws

Terminology in the guide

The guide uses the following terms:

•  “You” as the retailer providing goods on credit.
•  “Creditor” as the person that provides finance.
• “Debtor” and “customer” as the buyer of goods.

The guide updates the publication Hire Purchase – A Guide for Retailers, a business note which the Ministry of Consumer Affairs produced in 1998 and reprinted in July 2002, to meet the requirements of the new Act. The Hire Purchase guide will continue to be available as a resource for contracts entered into before 1 April 2005, although creditors may choose to bring these contracts within the coverage of the new Act.

The guide is a companion to the Credit Contracts and Consumer Finance Act 2003 – Introduction for Creditors. It has more detailed and specific information about the Act for creditors. This guide focuses on credit sales and covers related legislation that impacts on the provision of credit by retailers.

The Commerce Commission has also published guidelines to the Credit Contracts and Consumer Finance Act 2003. Contact the Commerce Commission for more information.

Other legislation

The guide also provides information on other legislation that may apply to credit sales. This includes the Credit (Repossession) Act 1997, the Personal Property Security Act 1999, the Fair Trading Act 1986, the Consumer Guarantees Act 1993, the Privacy Act 1993 and the Human Rights Act 1993.

Copies of the Acts mentioned in this information can be accessed online, for free. 

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 of the law relating to credit provided by retailers.

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 way in which this information is interpreted or for the consequences of relying on it.