CCCFA - Oppressive credit contracts

This Topic Includes:

Definition of oppressive
Remedies

Law has not changed

The provisions relating to reopening oppressive contracts have been carried over from the Credit Contracts Act. However, the provisions are now enforceable by the Commerce Commission.

The only changes relate to updating the terminology and, in Section 98 (Interim injunction), increasing the time limit for making applications – from six months since the last obligation was performed, to one year. 

Definition of oppressive

For the purposes of the Act, “oppressive” means oppressive, harsh, unjustly burdensome, unconscionable, or in breach of reasonable standards of commercial practice.

Remedies

The Court may reopen oppressive credit contracts, consumer leases and buy-back transactions.

The Court may:

• order that an account be taken for any transaction
• allow any party to possess the whole or part of any property that is the subject of the credit contract, consumer lease or buy-back transaction
• direct any party to pay to any other party any sum that the Court thinks fit
• order that any obligation outstanding under the contract be extinguished, revised, altered, complied with, or performed
• order that the contract, or any term of the contract, or any security interest in connection with the contract be revised or altered
• if a party has parted with any property that is the subject of a security interest, order them to indemnify the other party or parties
• direct any party to do or refrain from doing any act or thing in relation to any other party.