This Act replaces the Hire Purchase Act and the Credit Contracts Act so it is necessary to know the new rules.
The Credit Contracts and Consumer Finance Act (CCCFA) 2003 took effect from 1 April 2005. The legislation replaced the Credit Contracts Act and Hire Purchase Act for credit contracts (as defined in the legislation) entered into from 1 April 2005.
The CCCFA improves the information disclosure requirements for consumer credit transactions and regulates methods of interest charging, fees and payments. It also regulates consumer leases and allows for changes to the terms of contracts on the basis of hardship to a consumer.
The Act provides for the reopening of oppressive credit contracts, penalties if the Act is breached, and an enforcement role for the Commerce Commission.
The Act also regulates home buy-back transactions by providing disclosure requirements on operators, restrictions on the fees payable by occupiers and tough penalties for breaches.
The home buy-back schemes provisions of the CCCFA took effect on 14 October 2003.
Highlights of the Act:
The Credit Contracts and Consumer Finance Act 2003 applies to all credit contracts where credit is used for consumer purposes regardless of how much credit is extended.
The first part of this topic has been displayed free of charge. Join up for $45 to have access to this and all other topics!