How to deal with a problem

Taking action

You can take these steps to try to solve a credit contract problem.

1. Ask for the problem to be put right

Go to the seller or lender and ask for the problem to be put right. Keep a note of:

• when you talked to someone
• who you talked to
• what they said.

If you write to them, keep a copy of your letter. For more information about making a complaint, see How to Complain.

2. Get advice

If this doesn’t fix the problem, ask for advice from your nearest Citizens Advice Bureau – phone 0800 FOR CAB (0800 367 222).

If you visit a Citizens Advice Bureau or any other person for guidance, make sure you have your contract and any letters or notices from the lender or the seller. If the dispute is about how much you owe, get a printout of your balance and payments from the lender and take any receipts or bank statements that prove how much you’ve paid.

3. Try again

Once you know more about your rights, write or talk to the seller or lender again and ask for the problem to be put right. Keep a record of who you spoke to and when, and copies of any letters you send.

Getting outside help

If you find you can’t solve the problem yourself, or don’t know how, a number of places can offer you help.

Community agencies

As well as the Citizens Advice Bureau, you can get advice on credit sale and loan contracts from Budgeting Advisory Services and Community Law Centres. These are listed in the White Pages of your local phone book.

Taking a claim to the Disputes Tribunal (Ministry of Justice) or Court

The Disputes Tribunal or Court have the power to change or remove contract terms and can order sellers or lenders to return your goods if they’ve been illegally repossessed. They can award damages to you if the lender or seller has not provided all the required information.

You can take a claim to the Disputes Tribunal if the amount of your credit contract is under $7500 (although if you and the seller or lender agree, this can be up to $12,000). Tribunal addresses and phone numbers are listed under ‘Justice Ministry of’ in the Blue Pages of the phone book. For more information about making a claim, see The Disputes Tribunal or contact your nearest Citizens Advice Bureau, Community Law Centre or District Court.

It costs between $30 and $100 to make a claim to the Tribunal depending on the amount of your claim.

If your credit contract is for more than $7500 you may need to see a lawyer about whether you can take your claim to the District Court.

Reporting sellers and lenders

You can report sellers or lenders who’ve breached the rules of the Credit Contracts and Consumer Finance Act to the Commerce Commission. The Commission enforces the Act.

The Commerce Commission will not take your personal action against a seller or lender to Court. You can take your own case for damages against a seller or lender through the Disputes Tribunal or the District Court.

The Commission is interested in all breaches of the Act, but may only investigate certain reports that meet set criteria.

The Commerce Commission can:

•  prosecute traders or lenders – they can be fined up to $30,000 for each breach of the Credit Contracts and Consumer Finance Act
• ask the Court to ban a person who is found guilty of breaching the Credit Contracts and Consumer Finance Act from providing credit or being a director or employee of an organisation providing credit.

You can report an issue to the Commission’s enquiry line on 0800 943 600 or write to PO Box 2351, Wellington or email.