Credit (incl. hire purchase) and debt
When borrowing money for personal, domestic or household use you are protected by the Credit Contracts and Consumer Finance Act and the Credit (Repossession) Act. The information is relevant when you use credit cards, store cards, buy goods or services on credit or get cash loans.
The basics of credit contracts:
- Creditors must tell you the truth.
- Any fees including administration and default fees must be reasonable.
- You have the right to repay early.
- The contract can’t be harsh or oppressive.
- You can cancel in the first few days.
- You can ask to change your payments if you suffer unexpected hardship.
Before you borrow money - 10 Questions to ask
Your credit contract
Cancelling or changing your contract
Debt collection
Repossession
Guarantors
Got a problem with a credit contract?
The Credit Contracts and Consumer Finance Act 2003 applies to credit contracts signed after 1 April 2005.
In October 2010, regulations were made under the CCCFA to exempt student loans. For more information, see the Ministry of Education website, or view the full regulations on the Legislation website.
The Commerce Commission has a range of resources and factsheets on credit. See them here.
![[link to the Ministry of Business, Innovation, and Employment website].](http://www.consumeraffairs.govt.nz/images/MBIE-white-space.png)
