A law in New Zealand that helps to protect debt holders is called the Credit (Repossession) Act 1997. This act outlines the process that creditors and their agent must
abide by when they repossess goods and automobiles. Below are listed some key points of this Act.
a) The Act does not give the creditor the right to enter your property and take the goods unless this is written into your agreement.
b) Agents can only enter your property between 6am and 9pm Monday to Saturday. They cannot come on Sundays or public holidays unless, after missing payments, you have signed an agreement to allow agents to come at these times as well.
c) The creditor must send you a notice ( pre-possession notice ) that must state the amount you owe (past-due amount) and that you have 15 days from the day the notice was sent to pay the past due amount. before they repossess the goods or cars. However, if the creditor has good reason to believe the goods are at risk they do not have to send you a notice or wait 15 days before repossessing the goods or vehicles.
d) The creditor must send the guarantor the same pre-possession and post-possession notices that are sent to the borrower, however the creditor does not have to send the guarantor a notice when the goods or automobiles are sold.
e) When the repossession agent in finally legally allowed to repossess the goods they must provide you with (if you are at home), a copy of the pre-possession notice and written proof that they are working for the creditor. If you are not home they must leave a notice that states they have entered the house, a list of the goods they have taken and a copy of the pre-possession notice along with written proof that they are working for the creditor. The repossession agent is only allowed to take the goods listed on the credit contract and they must enter your house in a reasonable way. However they are allowed to break in, but they must do as little damage as possible and they should not leave your house obviously open or the agent may have to meet your costs of repairing unnecessary damage.
f) The creditor must send you a post-possession notice within 21 days of the goods or cars that have been taken. This notice must state the date they took the goods, the creditor's repossession costs, what you need to do if you want to reinstate or settle the agreement, the creditor's estimate of the current value of the goods and what will happen if you do not pay. The creditor does not have to send you this notice if they value the goods at less than 80 percent of the cash price or you choose to return the goods voluntarily.
For further information or assistance with this matter, please refer to the Ministry Of Consumer Affairs in New Zealand website at (