Credit repossession laws under review

The Law Commission is working alongside the Ministry of Consumer Affairs to review the Credit (Repossession) Act 1997.

The review is part of the wider review of consumer credit law announced by Commerce and Consumer Affairs Minister Simon Power in June.

Public feedback has been sought:

• from people who have suffered harassment and oppression in relation to repossessions;
• from lenders, on how well the law works for them;

and specifically, whether:

• household items or tools of trade up to a certain value should be protected from repossession;
• consent of a court should be required for repossession in all cases, or in cases where a certain amount of equity has built up in the goods;
• rights of entry on to private property should be contractually conferred, or dealt with in the legislation;
• the fitness of a credit provider should be assessed, or their financial services registration affected, by misconduct when they repossess goods;
• there should be oversight and enforcement by the Commerce Commission or another body; and
• the legislation should be incorporated into the Credit Contracts and Consumer Finance Act (which is currently under review by the Ministry of Consumer Affairs).

The paper is available on the Law Commission's website.

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For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.