The Commission's Report, Consumers and Repossession: A Review of the Credit (Repossession) Act 1997 (R124) , reccomends wide-ranging changes to New Zealand’s credit repossession laws, with a view to establishing a fairer, more transparent and efficient regime for all parties.
Under the proposed changes, consumers entering credit contracts would have to be told explicitly when repossession could occur, and which goods could be repossessed.
The Commission is also recommending that some goods, such as bedding, washing machines, portable heaters, passports and identity documents, should not be subject to repossession at all.
If the Commission’s recommendations are accepted by the Government, in the future repossession agents will need to be licensed and could lose their licence for breaching the new laws.
The recommendations arise from the Commission’s review of the Credit (Repossession) Act 1997. This forms part of the Government’s wider review of consumer credit law, led by the Ministry of Consumer Affairs.
The Commission is recommending that the 1997 Act be repealed and that provisions covering the repossession and sale of goods be incorporated into the Government’s proposed amendments to the Credit Contracts and Consumer Finance Act.
