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Consumer rights & money

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Guarantors

Debt recovery and enforcement

Tips for consumers dealing with debt
  • Check to see whether the debt is legally enforceable
  • See a financial mentor
  • Try to re-negotiate payments with the lender so that these can be managed
  • Check to see whether any help is available from Work and Income
  • Get legal advice about bankruptcy, the no-asset procedure and debt repayment orders (see “When you can’t pay your debts: Bankruptcy and other options”).

What is a debt?

A debt is when you owe money. An overdue debt could include not only a situation where you haven’t made your payments for a personal loan from a bank or loan company, or a hire-purchase debt, but also one where, for example, you haven’t paid one of the suppliers for your business or trade.

In this situation, the law generally refers to you as the “debtor”, and the person or company to whom you owe the money as the “creditor”.

What can happen if I don’t pay a debt?

The creditor may employ a debt collection agency to recover the debt. Or they may pass on or sell the debt to a debt collection agency, who then legally becomes the “creditor” for the debt. Alternatively, the creditor can take you to court to recover the debt and then use the different enforcement methods available through the courts (see “How debts are recovered through the courts”).

The creditor may also:

  • report the debt (see “Credit reports”)
  • take and sell any property that you’ve put up as security for the debt, if the credit contract allows this (see “Repossession”)
  • recover the amount of the debt from any guarantor or take and sell any property that a guarantor has put up as security (see “Guarantors”).
Next Section | Disputing that you owe a debt

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Credit and debt

Where to go for more support

Community Law

www.communitylaw.org.nz

Your local Community Law Centre can provide free initial legal advice and information.

Consumer Protection

www.consumerprotection.govt.nz

Consumer Protection helpline: 0508 426 678 (0508 4 CONSUMER)

Email: cpinfo@mbie.govt.nz

The Consumer Protection website has useful information on a range of consumer topics. Consumer Protection is part of the Ministry of Business, Innovation and Employment (MBIE).

MoneyTalks

www.moneytalks.co.nz

Phone: 0800 345 123

Email: help@moneytalks.co.nz

MoneyTalks provides free, confidential budgeting support. They can pair you with a financial mentor to help you if you are struggling with debt or need advice on budgeting.

FinCap

www.fincap.org.nz

Phone: 0800 345 123

Email: kiaora@fincap.org.nz

FinCap can help you with budgeting information online or on the phone. They may also suggest a local budgeting service to help you with debt and other budgeting issues.

Consumer NZ

www.consumer.org.nz

Phone: 0800 266 786

Email: info@consumer.org.nz

The Consumer NZ website provides a wide range of information on consumer credit and debt issues, including debt collectors, repossession and bankruptcy

Commerce Commission

www.comcom.govt.nz

Phone: 0800 943 600
Email: contact@comcom.govt.nz
The Commerce Commission enforces the consumer credit legislation (the Credit Contracts and Consumer Finance Act) and the laws against misleading and deceptive conduct by traders (the Fair Trading Act). The Commission provides information on these areas on its website.

It’s All Good

www.comcom.govt.nz/business/resources-for-consumer-organisations/its-all-good

It’s All Good is an animated series produced by The Commerce Commission about consumer rights.

Citizens Advice

www.cab.org.nz

Phone: 0800 FOR CAB (0800 367 222)
Citizens Advice Bureaux have volunteers trained in consumer law who can provide information and advice if you have a problem with credit and debt issues.

Dispute resolution schemes

There are four dispute resolution schemes for consumers dealing with lenders and other credit providers.

  • Financial Services Complaints Limited – www.fscl.org.nz
    Phone:     0800 347 257
  • Email: info@fscl.org.nz
  • Insurance & Financial Services Ombudsman –
    Phone: 0800 888 202
  • Email: info@ifso.nz
  • Banking Ombudsman – www.bankomb.org.nz
    Phone:     0800 805 950
  • Email: help@bankomb.org.nz
  • Financial Dispute Resolution – www.fdrs.org.nz Phone: 0508 337 337
  • Email: enquiries@fdrs.org.nz

Cases in the District Courts

The Ministry of Justice

The Ministry of Justice website has information about civil claims in the District Courts: see www.justice.govt.nz and search “Claims you can take to civil court”.

Credit reporting

Privacy Commission

www.privacy.org.nz
Phone: 0800 803 909

The Privacy Commission has information on your rights in relation to credit reporting and how to complain if you feel your rights have been breached.

Your credit record

Three credit reporting companies operate nationally in New Zealand. To check your record or correct any information, you’ll need to contact them all.

You’re entitled to a free copy of your credit record. You should make sure you choose the free option when you contact each company.

Centrix – www.centrix.co.nz 0800 236 874

Illion – www.illion.co.nz 0800 733 707

Equifax – www.equifax.co.nz 0800 698 332

Personal Properties Securities Register (PPSR)

www.ppsr.companiesoffice.govt.nz

Search the PPSR register to see if there is any security interest registered against a vehicle. This can be done for a small fee by registering to check online.

Bankruptcy and other options

Insolvency and Trustee Service

www.insolvency.govt.nz

Phone: 0508 INSOLVENCY (0508 467 658)

The Insolvency and Trustee Service (ITS) deals with bankruptcies, no-asset procedures, summary instalment orders and some company liquidations. Information about those processes is available on its website. The ITS is part of the Ministry of Business, Innovation and Employment (MBIE).

Also available as a book

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