NZ Loan Contracts; update for Layby Sale Right to Cancel

The New Zealand Consumer Contracts and Consumer Finance Act is introducing a change to the key information that must be included in the Credit Contract.

Schedule 1(s) covers the Debtor’s right to cancel the contract, and in particular introduces (saa) if the consumer credit contract is also a layby sale agreement:

• (i) a statement of the debtor’s cancellation rights under section 36F(1) of the Fair Trading Act 1986; and
• (ii) whether or not a cancellation charge under section 36F(3) of that Act will be imposed; and
• (iii) if a cancellation charge will be imposed, the amount of the charge (if a fixed charge will be imposed) or a clear description of how the charge will be calculated:

To cater for this the Account Type now includes an additional setting on the General page, "Is this a Layby Sale?". Note, the "Is this a Credit Sale?" has been moved and these two settings are grouped together.

The sample Loan Contracts include a new section for Laybys, which is removed if the Account Type's "Is this a Layby Sale?" settings is unchecked.

LAYBY SALE RIGHT TO CANCEL
If this is a layby sale you are entitled to cancel the layby sale contract at any time before you take possession of the goods.

How to cancel
To cancel, you must give the Creditor oral or written notice that you intend to cancel the contract by:
* Giving notice to the Creditor or an employee or agent of the Creditor; or
* Posting the notice to the Creditor or an agent of the Creditor; or
* Emailing the notice to the Creditor's email address (if specified on the front of this disclosure statement); or
* Sending the notice to the Creditor's fax number (if specified on the front of this disclosure statement).

Charges for cancelling the layby sale
If the agreement is cancelled the Creditor may charge a cancellation fee.

Add your own cancellation fee notice here, including when and how much the fee will be. For more information see the Fair Trading Act 1986, section 36F(3)

The following sample Word Document Templates have been updated:

Loan Contact

• Loan_Contract_NZCCCFA.docx
• Loan_Contract_NZCCCFA.xml
• Version: 1.14 (15/10/2020)

Revolving Credit Loan Contract

• Loan_Contract_NZCCCFA_RC.docx
• Loan_Contract_NZCCCFA_RC.xml
• Version: 1.10 (15/10/2020)

DISCLAIMER: As per your Software Licence Agreement, before using sample Documents it is your responsibility to make sure the sample Documents are fit for the purpose and work as required and shall, as necessary, seek independent professional advice from sources such as Lawyers, Accountants and Government Agencies.