the lender has the right to charge you, in addition, their administrative costs for the repayment and a reasonable estimate of the loss the repayment has caused them. Creditors can't "contract out" of the legal requirements The protection given borrowers by the Credit Contracts and Consumer Finance Act 2003 applies even if the particular contract says it doesn't apply. In other words, lenders can't contract out of the rights given to borrowers. Lenders can bring existing contracts under the 2003 Act Consumer credit contracts made before 1 April 2005 are ordinarily not covered by the Credit Contracts and Consumer Finance Act 2003 . However, a lender can choose to bring those existing contracts under the new Act, provided this does not increase any of the borrower's obligations. This allows a lender to operate a single system rather having to run two different systems, with one set of contracts covered by the old laws and another set covered by the 2003 Act. Special rules for "buy back" schemes Special protection for consumers were introduced on 14 October 2003 to cover home "buy back" schemes. These schemes, apparently common in South Auckland, have resulted in many homeowners losing their homes. For more information, see How to be protected against home "buy back" schemes. Cautionary notes If you are considering borrowing a large amount of money under a credit contract, it would be wise to see a lawyer before doing so in order to fully understand the effects of the agreement. Guarantors should