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2015/82 Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015 Jerry Mateparae, Governor-General Order in Council At Wellington this 4th day of May 2015 Present: The Right Hon John Key presiding in Council Pursuant to section 138(1) of the Credit Contracts and Consumer Finance Act 2003, His Excellency the Governor-General makes the following regulations, acting— (a) (b) 1 2 3 4 on the advice and with the consent of the Executive Council; and on the recommendation of the Minister of Commerce and Consumer Affairs made in accordance with section 138(1C) of the Credit Contracts and Consum- er Finance Act 2003.
Contents Title Commencement Principal regulations New regulations 19 to 21 and cross-heading inserted Circumstances in which section 26A of Act (disclosure of transfer of rights of creditor) not to apply Section 26A of Act not to apply if transfer made for purposes of securitisation or covered bond arrangements or similar arrangements Contract manager appointed by new creditor New creditor was contract manager before transfer 19 20 21 Page 2 2 2 2 2 3 4 1 r 1 1 2 3 4 Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015 2015/82 Regulations Title These regulations are the Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015.
Commencement These regulations come into force on 6 June 2015.

Principal regulations These regulations amend the Credit Contracts and Consumer Finance Regula- tions 2004 (the principal regulations).
New regulations 19 to 21 and cross-heading inserted After regulation 18 (as inserted by regulation 7 of the Credit Contracts and Consumer Finance Amendment Regulations 2015), insert: Circumstances in which section 26A of Act (disclosure of transfer of rights of creditor) not to apply 19 (1) Section 26A of Act not to apply if transfer made for purposes of securitisa- tion or covered bond arrangements or similar arrangements For the purposes of section 26A(3) of the Act, section 26A of the Act does not apply in the case of a transfer of the kind referred to in section 26A(1) of the Act if— (a) the transfer is made for the purposes of securitisation or covered bond arrangements or similar arrangements; and (b) regulation 20 or 21 applies.
(2) In this regulation and regulations 20 and 21,— debtor means a debtor under the relevant contract disclosure deadline means the end of the period of 10 working days referred to in section 26A(2) of the Act guarantee means a guarantee in relation to the relevant contract guarantor means a guarantor in relation to the relevant contract new creditor means the person to whom the transfer is made payment means a payment— (a) (b) under the relevant contract by a debtor; or under a guarantee by a guarantor relevant contract means the consumer credit contract to which the transfer re- lates.
2 2015/82 Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015 r 4 20 (1) (2) Contract manager appointed by new creditor This regulation applies if— (a) (b) conditions A to D are met; and condition E is met, subject to subclause (7).
Condition A is that, at the disclosure deadline, there is a contract (the manage- ment contract) between the new creditor and another person (the contract manager) that provides for the contract manager, during the period after the disclosure deadline until the end of the term of the management contract or until that contract ends in some other way,— (a) (b) (c) to collect all payments from every debtor and guarantor; and otherwise to manage the relevant contract and every guarantee; and to deal with every debtor and guarantor for those purposes accordingly.
(3) Condition B is that, no later than the disclosure deadline, the contract manag- er’s name, address, and other contact details are disclosed to every debtor and guarantor.
(4) Condition C is that,— (a) (b) immediately before the transfer takes effect, the contract manager is al- ready performing the role referred to in subclause (2)(a) to (c) (as a cred- itor under the relevant contract or under a contract with such a creditor); or no later than the disclosure deadline, every debtor and guarantor is ad- vised of the contract manager’s role as referred to in subclause (2)(a) to (c).
(5) Condition D is that,— (a) at the disclosure deadline, the contract manager— (i) (ii) is registered under the register of financial service providers; and is a member of a dispute resolution scheme; and (b) at the disclosure deadline,— (i) (ii) the contract manager is a creditor under the relevant contract; or the rules of the scheme referred to in paragraph (a)(ii) relating to complaints about its members apply in relation to the contract manager (whether by virtue of a provision of the rules themselves or by virtue of other arrangements)— (A) (B) as if the contract manager were the creditor under the rele- vant contract; and so that the scheme must accept for resolution, and the con- tract manager is bound by the resolution of, complaints on that basis accordingly.
3 r 4 (6) Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015 2015/82 Condition E is that, no later than the disclosure deadline, the following infor- mation is disclosed to every debtor and guarantor: (a) (b) the contract manager’s registration number under the register of financial service providers and the name under which the contract manager is registered under that register: the name and contact details of the dispute resolution scheme of which the contract manager is a member.
(7) Condition E does not have to be met if— (a) (b) the relevant contract is entered into before 6 June 2015; and subclause (4)(a) applies.

21 (1) (2) (3) (4) New creditor was contract manager before transfer This regulation applies if— (a) (b) conditions A and B are met; and condition C is met, subject to subclause (5).
Condition A is that, immediately before the transfer takes effect, the new cred- itor (under a contract with a person who is a creditor under the relevant con- tract)— (a) (b) (c) is collecting all payments from every debtor and guarantor; and is otherwise managing the relevant contract and every guarantee; and is dealing with every debtor and guarantor for those purposes according- ly.
Condition B is that, no later than the disclosure deadline, the new creditor’s name, address, and other contact details are disclosed to every debtor and guar- antor.
Condition C is that, no later than the disclosure deadline, the following infor- mation is disclosed to every debtor and guarantor: (a) (b) the new creditor’s registration number under the register of financial service providers and the name under which the new creditor is regis- tered under that register: the name and contact details of the dispute resolution scheme of which the new creditor is a member.

(5) Condition C does not have to be met if the relevant contract is entered into be- fore 6 June 2015.
Michael Webster, Clerk of the Executive Council.

4 2015/82 Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015 Explanatory note Explanatory note This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 6 June 2015, amend the Credit Contracts and Consumer Finance Regulations 2004 in order to prescribe the circumstances in which section 26A of the Credit Contracts and Consumer Finance Act 2003 (the 2003 Act) does not apply.

Section 26A is inserted by section 22 of the Credit Contracts and Consumer Finance Amendment Act 2014.
Section 26A of the 2003 Act requires certain information to be disclosed to every debtor and guarantor under a consumer credit contract (the relevant contract) if the rights of a creditor under that contract are transferred to another person (the new creditor).

In broad terms, the information that is required to be disclosed is informa- tion about the new creditor and about the consequences of the transfer.
Section 26A(3) provides that section 26A does not apply in the prescribed circumstances, which must relate to securitisation or covered bond arrangements or similar arrange- ments.

Regulation 4 inserts new regulations 19 to 21 that set out the prescribed circumstan- ces for the purposes of section 26A(3) of the 2003 Act.

First, the transfer of rights must be made for the purposes of securitisation or covered bond arrangements or similar arrangements (see new regulation 19(1)(a)).
Secondly, the conditions set out in either new regulation 20 or new regulation 21 must be met (see new regulation 19(1)(b)).

In broad terms, the conditions set out in new regulation 20 are as follows: • • • • the new creditor must have a contract with another person (the contract man- ager), under which the contract manager is to manage the relevant contract.
The contract manager could be the creditor who makes the transfer: the contract manager’s contact details must have been disclosed to every debtor and guarantor.
This disclosure may have been made before the transfer, for ex- ample, as required by the initial disclosure provisions of section 17 of the 2003 Act if the contract manager is a creditor when the relevant contract is entered into: the contract manager must have been managing the relevant contract before the transfer or, if that is not the case, every debtor and guarantor must be advised that the contract manager will be managing the relevant contract: the contract manager must be registered under the register of financial service providers maintained under Part 2 of the Financial Service Providers (Registra- tion and Dispute Resolution) Act 2008 and be a member of a dispute resolution scheme approved under Part 3 of that Act.
If the contract manager is not a cred- itor under the relevant contract, the rules of the dispute resolution scheme must apply as if the contract manager were the creditor under the relevant contract.
This is to ensure that a debtor or guarantor can make complaints against the contract manager in relation to the relevant contract and that any such com- 5 Explanatory note Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2015 2015/82 plaints are resolved in the same way they would be resolved if the contract manager were the creditor under the relevant contract: • subject to a transitional provision that applies if the relevant contract is entered into before 6 June 2015, the contract manager’s registration details and the de- tails of the contract manager’s dispute resolution scheme must have been dis- closed to every debtor and guarantor.
This disclosure may have been made be- fore the transfer.

In broad terms, the conditions set out in new regulation 21 are as follows: • • • the new creditor must have been managing the relevant contract before the transfer under a contract with a creditor: the new creditor’s contact details must have been disclosed to every debtor and guarantor.
This disclosure may have been made before the transfer: subject to a transitional provision that applies if the relevant contract is entered into before 6 June 2015, the contract manager’s registration details and the de- tails of the contract manager’s dispute resolution scheme must have been dis- closed to every debtor and guarantor.

This disclosure may have been made be- fore the transfer.
Regulatory impact statement The Ministry of Business, Innovation, and Employment produced a regulatory impact statement on 7 April 2015 to help inform the decisions taken by the Government re- lating to the contents of this instrument.
A copy of this regulatory impact statement can be found at— • • http://www.consumeraffairs.govt.nz/legislation-policy/policy-reports-and- papers/regulatory-impact-statements http://www.treasury.govt.nz/publications/informationreleases/ris Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 7 May 2015.

These regulations are administered by the Ministry of Business, Innovation, and Employment.
Wellington, New Zealand: Published under the authority of the New Zealand Government—2015 6